On the evening of September 20, DUIBA (01753) announced that its controlling shareholder, Xiaoliang Holding Limited, entered into a gift agreement with its employee share incentive platform on September 20, 2026. Under the terms of the agreement, Xiaoliang Holding will transfer a total of 120,682,000 company shares to the employee shareholding platform free of charge, accounting for approximately 11.21% of the company's total issued share capital (excluding treasury shares) as of the announcement date.
Following the completion of the transfer, Xiaoliang Holding will hold a total of 333,870,000 shares, representing approximately 31.01% of the company's total issued share capital. The transfer will not result in any change to the company's controlling shareholder. The shares are expected to be used for awards granted or to be granted under the company's employee incentive plans.
According to exchange disclosure filings, shortly after DUIBA's listing in 2019, the founder voluntarily extended the lock-up period on his personal shareholding to three years. Over the seven-plus years since listing, the founder has never reduced his personal shareholdings. This first significant equity move after seven years is not a cash-out but a deployment of existing shares equivalent to 11.21% of total share capital for talent incentives and development. According to available public data, this donation also marks the largest founder-to-employee share platform donation in Hong Kong stock market history to date.
Supported by an AI-technology-driven high-growth business strategy, the employee incentive platform has committed to allocating future incremental incentive plans primarily to reward talent essential for the development of AI businesses, including the AI short-drama segment. This gift arrangement reflects the major shareholder's confidence in and support for the company's long-term development, aiming to further strengthen the long-term orientation of core talent and thereby facilitate the achievement of the company's medium-to-long-term strategic objectives.
Where the move fits
Under this arrangement, the controlling shareholder supports the employee share incentive platform through a gratuitous transfer of existing shares, rather than through new share issuance or the use of company funds to implement incentives. Analysts note that this method neither dilutes minority shareholder interests nor consumes company cash, leaving profitability and cash flow unaffected. In an environment where technology and content-driven enterprises are increasingly strengthening talent incentives, a controlling shareholder's support of core team building with personal shares reflects both confidence in the company's long-term value and recognition of core team contributions. This approach helps optimise corporate governance structures and strengthen incentive and restraint mechanisms.
Moreover, all awards granted under both existing and newly added future incentive plans must comply with the vesting and lock-up arrangements set forth in the company's equity incentive management measures. These arrangements are designed to attract and retain key talent, aligning core teams with the company's long-term development outcomes. For the AI business segment, which is currently in an expansion phase, a stable and sustainable talent team is the organisational foundation for continuous innovation and scaled output. Through this arrangement, the company aims to further solidify its talent advantage, enhance team stability and competitiveness, and provide organisational support for subsequent business breakthroughs.
Focus on AI short-drama talent
The announcement clarifies that, in line with the AI-technology-driven high-growth strategy, the employee shareholding platform has committed to directing future incremental incentive plans primarily toward the core teams required for AI short-drama business development. This indicates that the company's equity incentive resources will increasingly concentrate on the AI short-drama segment, using human capital as a link to accelerate the building of technological, content, and operational capabilities.
From a strategic perspective, this goes beyond being merely an incentive arrangement; it signals the company's determination to execute its strategic transformation. DUIBA is currently transitioning into an AI-Native content platform with AI as its operating system. Its single-producer model enables one individual to complete the entire workflow independently, from script comprehension and storyboard breakdown to virtual character generation, scene matching, and final output. The proprietary scriptwriting Agent has boosted frontline writers' efficiency by five to eight times. Through standardised training under this system, high-quality production teams can be replicated at scale.
Within DUIBA's AI-Native framework, talent serves as a key carrier of core capability and a critical element for driving continuous iteration of the system. Incentivising core talent helps ensure the stable operation and ongoing optimisation of this system.
AI short-drama growth validates strategy
According to public information, since DUIBA launched its AI short-drama business in January 2026, the company has achieved standout results amid an industry environment characterised by high supply but low hit rates. Native playback volume on Douyin grew 178% cumulatively from June to August, maintaining a top-four position for three consecutive months and entering the top three from July to August. Notably, the company was the only leading player to maintain growth above 50% for two consecutive months. Entering September, the latest weekly ranking placed the company second, with growth momentum persisting.
Behind this rapid business growth, the company's overall operating performance has also seen simultaneous breakthroughs. The interim financial report for 2026 shows total revenue of RMB 435 million in the first half, up 24.34% year-on-year. Among this, the AI short-drama business contributed RMB 223 million in revenue, representing 51.2% of total revenue and serving as the core engine driving performance growth. The AI short-drama segment has not only become the company's primary revenue source but also validated the effectiveness of its AI-driven high-growth strategy.
The ranking performance and interim report data corroborate each other, reflecting both the explosive growth of the business and the company's resolve in strategic transformation. From SaaS business to AI short-drama, and from traditional content production to an AI-Native platform, the transformation has entered a phase where revenue structure and organisational capabilities are switching in tandem.
On the secondary market front, following the disclosure of AI short-drama business progress on August 24, DUIBA's share price has trended upward consistently. As of the close on September 18, the stock was priced at HK$0.615, representing a cumulative increase of approximately 3.42 times compared with before that announcement. During the period, average daily turnover reached approximately HK$10.46 million, setting a new high for average daily turnover over the past four years and making the stock one of the more closely watched targets in the Hong Kong market recently.
AI short-drama is currently the company's high-growth area and a key strategic direction for the future. Directing incentive resources toward this segment helps clarify strategic priorities, retain core talent, and drive business breakthroughs. As the share donation is completed and subsequent incentive plans are progressively implemented, the company is well-positioned to further strengthen its talent base and improve execution efficiency in the AI short-drama and AI comic-drama track, providing talent support and institutional safeguards for future business progress.