Core Points - The core announcement is that Xinghui Entertainment has completed the registration changes related to the sale of its stake in the Espanyol Football Club, marking a significant shift in its business focus [1][4][7]. Financial Performance - For the first half of 2025, Xinghui Entertainment reported a revenue of 1.135 billion yuan, an increase of 84.58% compared to the same period last year [8]. - The net profit attributable to shareholders was 155 million yuan, indicating a turnaround from a loss of 458 million yuan in 2024 [8]. - The net cash flow from operating activities reached 374 million yuan, a significant increase of 737.97% year-on-year [8]. - Basic and diluted earnings per share improved to 0.13 yuan, compared to a loss of 0.14 yuan in the previous year [8]. Share Transfer Details - Xinghui Sports (Hong Kong) received 65 million euros in cash from VELOCITY, which corresponds to a 14.72% stake valued at 25 million euros and a 23.54% stake valued at 40 million euros in VELOCITY [4]. - The total profit generated from operational activities, including player sales, is estimated to contribute approximately 10.3 million yuan to the net profit attributable to shareholders [4][7]. Business Strategy - Following the completion of the share transfer, Xinghui Entertainment will no longer consolidate the Espanyol Football Club into its financial statements, effectively divesting from its football club operations [7]. - This strategic move is expected to enhance the company's cash flow and positively impact its financial and operational status [7]. Company Background - Xinghui Entertainment, established in 2000 and listed on the A-share market in 2010, has diversified its business across football clubs, gaming, and toys [9]. - The company became the first A-share listed company to control a top club in one of Europe's five major leagues when it acquired a controlling stake in Espanyol in 2015 [9].

Core Viewpoint - The company Starry Entertainment is selling its 99.66% stake in the Spanish football club Espanyol to Velocity Sports Ltd, owned by the Burnley FC owner, for a total price of €130 million [2][5]. Group 1 - Starry Entertainment announced on July 14 that it plans to sell its stake in the La Liga team Espanyol to Velocity Sports Ltd, with the transaction price set at €130 million [2]. - The payment structure includes €65 million in cash and €65 million in shares of the buyer [2]. - After the transaction, Velocity will hold 99.66% of Espanyol, while Starry Entertainment will own 16.45% of Velocity through its subsidiaries [2][5]. Group 2 - The agreement allows Espanyol and Burnley to operate independently while being part of the same investment group, Velocity Sports Ltd [7]. - This move enables the investment group to have resources from both La Liga and the Premier League [7]. - As of July 14, Starry Entertainment's stock price was reported at 4.7 yuan per share, with a market capitalization of 5.848 billion yuan [6].