Kingsoft Corporation Limited signed a joint operation framework agreement for games with Huaduo Group.
Kingsoft said that the company and Huaduo Group agreed to establish a long-term business relationship to explore the cooperation in the area of the online games. In order to regulate the joint operation in games, the two parties entered into the joint operation framework agreement for games on December 30, 2014, and set the annual caps of the continuing connected transactions contemplated thereunder for the three years ending December 29, 2017.
Under the agreement, Kingsoft and Huaduo Group will jointly operate the games developed and owned by Kingsoft or the games licensed to be operated by Kingsoft. Kingsoft will provide its game content, relevant updates and technical support; while Huaduo Group will provide operational services, including but not limited to the game distribution, promotion, and operation by way of exclusive licensing or joint operation of games, on platforms such as website, software, PC products and mobile platform.
As a part of the agreement, Huaduo Group will pay up to CNY195 million to Kingsoft over the next three years.