REG - Winking Studios Ltd - THIRD PHASE OF JOINT AI DEVELOPMENT PROJECT

Winking StudiosAnnouncement

07/03/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250307:nRSG7042Za&default-theme=true

RNS Number : 7042Z  Winking Studios Limited  07 March 2025

WINKING STUDIOS LIMITED

(the "Company", and together with its subsidiaries, the "Group")

(Company Registration No. 159882)

(Incorporated in the Cayman Islands)

7 March 2025

THIRD PHASE OF JOINT AI DEVELOPMENT PROJECT

 

Winking Studios Limited (AIM: WKS, SGX: WKS), a leading provider of AAA art
outsourcing and game development services, announces the next phase of its
joint artificial intelligence ("AI") project with Acer Incorporated ("Acer
Inc."), building on the success of its GenMotion.AI to deliver the next
milestone in advancing 3D animation technology using generative AI.

 

Further to the Company's announcement of 5 December 2024, its wholly-owned
subsidiaries: Winking Entertainment Corporation, Shanghai Winking
Entertainment Ltd, and Nanjing Winking Entertainment Ltd. (collectively, the
"Winking Entities"), have entered into a third-phase agreement for the
co-development of a three-dimensional animation AI generation software (the
"AI Tool") (the "Phase Three AI Agreement") with Acer Inc., for the duration
from 1 January 2025 to 31 August 2025.

 

Rationale and Benefits of the Phase Three AI Agreement

 

Building on the "GenMotion.AI" core technology developed during the first two
phases, this new phase of the AI Project will further refine and enhance
existing project outcomes by integrating additional resources and research and
development ("R&D") capabilities to strengthen AI applications within game
development. GenMotion.AI is designed to generate 3D animations from
text-based inputs using carefully curated training data derived from the
gaming industry, ensuring accurate and authentic 3D character designs and
movements.

Continuous AI-driven innovations in 3D animation are poised to increase
efficiency, accelerate production cycles, and improve the overall visual
quality of gaming and digital art assets. By integrating deep AI capabilities
within established animator workflows, the Company aims to equip game artists
and creators with cutting-edge tools that drive both enhanced productivity and
creativity. The AI technology has already been successfully tested with a
select customer; in January 2025, the Company successfully completed a project
with a major international client, paving the way for the technology to be
deployed more broadly within the customer base.

 

Collaboration with Acer

 

With the conclusion of the previously announced first two phases of the AI
development project (the "AI Project"), and this newly announced third phase,
Acer's total investment in the AI Tool will amount to an aggregate value of
approximately US$1.5m. Under the Phase Three AI Agreement, Acer Inc. will
contribute up to US$0.5m towards further research, development, and testing of
the AI Tool to be performed by the Winking Entities, while the Winking
Entities will continue to provide the necessary manpower, software, and
hardware. Both Acer Inc, and the Winking Entities may continue to use the AI
Project outcomes without charge for their respective business purposes. In the
event that any new inventions arise from this collaboration for which
applications for intellectual property ("IP") rights are filed, such IP rights
will be held on a 50:50 ownership basis by the Winking Entities and Acer.

 

Mr. Johnny Jan, Executive Director and Chief Executive Officer (Founder) of
Winking Studios Limited, commented: "The third phase of our AI collaboration
with Acer Inc. represents yet another milestone in advancing 3D animation
technology. Building on the success of GenMotion.AI, we remain confident that
ongoing integration of advanced AI solutions will empower our teams and our
clients, yielding greater efficiency and enhancing creative opportunities. We
greatly value Acer's commitment to pioneering AI-driven applications, and we
look forward to the innovations this collaboration will bring to digital art
creation."

 

Mr. Jerry Kao, Chief Operating Officer of Acer Inc. and Non-Executive Director
of Winking Studios Limited, added: "Our continued partnership with Winking
Studios is grounded in the shared belief that AI can redefine industry
standards in gaming and digital art. Through this third phase of development,
we intend to explore additional cutting-edge possibilities for 3D animation,
providing next-generation tools that benefit both creators and end users. We
look forward to building on our joint achievements as we shape the future of
digital art creation."

 

Related Party Transaction (Under Rule 13 of the AIM Rules for Companies)

 

Acer Inc., via its subsidiaries namely, Acer Gaming Inc. and Acer SoftCapital
Inc., holds approximately 64.16% of the Company's issued share capital, making
it a related party under the AIM Rules for Companies.

Accordingly, the Phase Three AI Agreement constitutes a related party
transaction pursuant to Rule 13 of the AIM Rules for Companies. The
independent Directors to the Phase Three AI Agreement (being the full Board,
excluding Mr. Kao Shu-Kuo, who is a Non-Executive Director of the Company and
also Chief Operating Officer of Acer Inc. and a director of Acer Gaming Inc.),
having consulted with Strand Hanson Limited, the Company's Nominated Adviser,
believe that the terms of the Phase Three AI Agreement are fair and reasonable
insofar as shareholders of the Company are concerned.

 

Interested Person Transaction ("IPT") (Under Catalist Rules)

 

The Phase Three AI Agreement also constitutes an IPT under Chapter 9 of the
Listing Manual Section B: Rules of Catalist of the Singapore Exchange
Securities Trading Limited (the "Catalist Rules"). However, this transaction
falls within the scope of the prevailing IPT general mandate approved by
shareholders at the extraordinary general meeting held on 28 October 2024.

 

 

 

 

Enquiries

 Singapore                                                              UK
 Winking Studios Limited                                                Via Alma

 Johnny Jan, Executive Director and Chief Executive Officer (Founder)

 Oliver Yen, Finance Director and Group Chief Financial Officer
 8PR Asia (Singapore Investor Relations)                                Alma Strategic Communications

 Alex Tan                                                               Justine James / David Ison / Emma Thompson

 +65 9451 5252                                                          +44 (0)20 3405 0205

 alex.tan@8prasia.com (mailto:alex.tan@8prasia.com)                     WKS@almastrategic.com (mailto:WKS@almastrategic.com)
 PrimePartners Corporate Finance Pte. Ltd. (Sponsor)                    Strand Hanson Limited

 Foo Jien Jieng                                                         (Financial and Nominated Adviser)

 sponsorship@ppcf.com.sg (mailto:sponsorship@ppcf.com.sg)               James Harris / James Bellman

                                                                        +44 (0)20 7409 3494
                                                                        SP Angel Corporate Finance LLP (Broker)

                                                                        Stuart Gledhill / Charlie Bouverat (Corporate Finance) Abigail Wayne / Rob
                                                                        Rees (Corporate Broking)

                                                                        +44 (0)20 3470 0470

 

Winking Studios Limited (the "Company") was listed on Catalist of the
Singapore Exchange Securities Trading Limited (the "SGX-ST") on 20 November
2023 and dual listed on AIM Market of the London Stock Exchange on 14 November
2024. The initial public offering of the Company on the Catalist of SGX-ST was
sponsored by PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor"). This
announcement has been reviewed by the Sponsor. It has not been examined or
approved by the SGX-ST and the SGX-ST assumes no responsibility for the
contents of this announcement, including the correctness of any of the
statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Ms. Foo Jien Jieng, 16 Collyer Quay,
#10- 00 Collyer Quay Centre, Singapore 049318, sponsorship@ppcf.com.sg
(mailto:sponsorship@ppcf.com.sg) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDPKABPPBKDQNK