Acquisition

12 Months Ended

Dec. 31, 2025

Acquisition [Abstract]

ACQUISITION

4. ACQUISITION

Acquisition of Star Home

On April 1, 2025, Scenovo SG entered into a share acquisition agreement with a third party to purchase 70% equity in Star Home for a consideration of nil. The transaction was completed on April 1, 2025. Star Home is a Dubai-based multi-channel network (MCN) company. The historical operating results of Star Home were not significant to the Company. The Company believes the Star Home acquisition will help to explore overseas market. The Star Home acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company.

	RMB			US$
Total consideration		-			-
Assets acquired and liabilities assumed:
Cash acquired		28			4
Prepaid expenses and other current assets		662			95
Current liabilities		(1,268	)		(181	)
Total net assets acquired		(578	)		(82	)
30% Equity Value with non-controlling interests		-			-
Goodwill		578			82

Acquisition of SH Entertainment

On August 26, 2025, Scenovo SG entered into a share acquisition agreement with a third party to purchase 70% equity in SH Entertainment for a consideration of RMB7,930 (US$1,134) (including a cash consideration of RMB 1,224 and a settlement of RMB 6,706 due from SH Entertainment). The transaction was completed on October 1, 2025. SH Entertainment is a South Korea -based multi-channel network (MCN) company. The historical operating results of SH Entertainment were not significant to the Company. The Company believes the SH Entertainment acquisition will help to explore oversea market. The SH Entertainment acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company.

	RMB			US$
Total consideration		7,930			1,134
Assets acquired and liabilities assumed:
Cash acquired		1,759			252
Prepaid expenses and other current assets		679			97
Property and equipment, net		662			95
Long term deposits and other assets		960			137
Current liabilities		(251	)		(36	)
Total net assets acquired		3,809			545
30% Equity Value with non-controlling interests		869			124
Goodwill		3,252			465

Pro forma financial information is not presented for this business acquisition as it is immaterial to the reported results.

The goodwill was mainly attributable to intangible assets that cannot be recognized separately as identifiable assets and comprise (a) the assembled work force and (b) the expected but unidentifiable business growth because of the synergy resulting from the acquisition. None of the goodwill recognized is expected to be deductible for income tax purposes.