# NetDragon Takes 51% Stake in New AI Joint Venture With Jiuzhou Culture

- URL: https://stocks.freetheai.org/news/netdragon-takes-51-stake-in-new-ai-joint-venture-with-jiuzhou-culture-853eb5
- Published: 2026-10-20T02:50:00Z
- Category: company_news; sentiment: neutral; impact: medium
- Symbols: [HKEX:777](https://stocks.freetheai.org/symbols/HKEX-777)
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NetDragon Websoft Holdings Limited (HKEX:777) has signed a memorandum of understanding with Jiuzhou Culture to establish an artificial intelligence joint venture. NetDragon will hold a 51% controlling stake in the venture following a RMB 50 million cash contribution, while Jiuzhou Culture will inject its AI Harness technology assets. NetDragon shares recently traded down 0.32% at 7.83 HKD.

The agreement enables NetDragon to consolidate the joint venture into its financial statements, expanding its reach into artificial intelligence alongside its gaming and education units. To align incentives, NetDragon will issue 25 million unlisted performance-based warrants to Jiuzhou Culture with initial exercise prices set at HK$10, HK$12, and HK$15. If exercised, the warrants could provide up to approximately HK$314 million in cash proceeds.

Key milestones to track include specific performance targets achieved by the venture, revenue traction generated by AI Harness technology, and details on customer contracts or monetization progress.

## Key points

- NetDragon Websoft Holdings Limited entered an MOU to form an AI joint venture with Jiuzhou Culture, taking a 51% majority stake.
- NetDragon will contribute RMB 50 million in cash, while Jiuzhou Culture will inject its AI Harness assets into the venture.
- The company will issue 25 million unlisted warrants with strike prices at HK$10, HK$12, and HK$15, potentially raising HK$314 million if exercised.
- NetDragon will consolidate the joint venture's financial results into its reported figures.
- NetDragon shares traded at 7.83 HKD, down 0.32% today.

## Questions and answers

### How much is NetDragon investing in the AI joint venture?

NetDragon is contributing RMB 50 million in cash to secure a 51% controlling stake in the new artificial intelligence joint venture with Jiuzhou Culture.

### What are the terms of the warrants issued to Jiuzhou Culture?

NetDragon will issue 25 million unlisted performance-based warrants with exercise prices set at HK$10, HK$12, and HK$15, which could generate about HK$314 million if fully exercised.

### What assets is Jiuzhou Culture bringing to the joint venture?

Jiuzhou Culture is injecting its AI Harness technology assets into the venture to help accelerate product deployment.