Hengsheng Group's stock surged to its upper limit following the announcement of a memorandum of understanding (MOU) with a Chinese state-owned enterprise to expand its cultural and artistic intellectual property (IP) business.
According to the Korea Exchange, as of 1:24 PM, Hengsheng Group's shares were trading at 2,730 won, up 630 won (30.00%) from the previous trading day. This marked the first trading day after the lifting of a trading suspension due to a stock consolidation.
The company announced that it signed the MOU with Dongpin (Hangzhou) Cultural Creative Development Co., Ltd., a state-owned enterprise, to expand the commercialization of art and cultural IP products.
According to the company, Dongpin Cultural is a wholly-owned subsidiary of the China Academy of Art Publishing House. It focuses on developing cultural products, planning exhibitions and events, and creating digital content and IP based on academic resources in the fields of art and design, as well as state-owned cultural resources.
Through this MOU, the two companies plan to combine Hengsheng Group's global toy production and supply chain capabilities with Dongpin Cultural's cultural and artistic content to jointly explore and promote new business models.
Hengsheng Group intends to utilize the cultural creative IP held by Dongpin Cultural, including artworks, museums, cultural heritage, and characters, to develop premium toy products such as dolls, figures, blind boxes, and character goods. The company will oversee the entire process from product planning to prototype production, mass production, and quality control to expand its business.
* This article has been translated by AI.
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