5 December 2024
Winking Studios
Limited
(the
"Company" and together with
its subsidiaries, the "Group")
Further Phase
of
Joint AI Development Project
Winking Studios Limited (AIM:WKS,
SGX:WKS), the AAA Art Outsourcing and Game Development
business, is pleased to announce that its
wholly-owned subsidiaries namely, Winking Entertainment
Corporation, Shanghai Winking Entertainment Ltd, and Nanjing
Winking Entertainment Ltd ("Winking Entities"), have on 5 December
2024, entered into a supplementary agreement to the second phase of
joint artificial intelligence ("AI") development project for the
co-development of a three-dimensional animation AI generation
software (the "AI
Tool") (the "AI Project Supplementary Agreement") with
Acer Incorporated ("Acer
Inc."), for the duration from 1 November 2024 to 31 December
2024.
The AI Project Supplementary
Agreement follows the first and second phase of the AI project
completed earlier this year, which, together with earlier phases,
will amount to an aggregate value of US$1,000,000 invested in the
AI Tool (the "AI
Project"). Under the AI
Project Supplementary Agreement, Acer Inc. will contribute
US$200,000 towards the further research, development and testing of
the AI Tool by the Winking Entities, which will contribute the
manpower, software and hardware necessary for the AI Tool. Both
Winking and Acer may use the general research and development
outcomes without charge for their business purposes. If a new
'invention' is generated from the AI Project and intellectual
property rights are applied for, Winking Entities (on a collective
basis) and Acer Inc. shall each have a 50% ownership in the
intellectual property rights applied for.
Rationale and Benefit of the AI Project
'GenMotion.AI' is the core focus of
the AI Project, and the AI Project Supplementary Agreement is to
supplement the second phase of the AI Project whereby the parties
will continue to establish a joint development framework with a
view to further integrating resources and research and development
capabilities to strengthen the integration of AI applications and
game software technology, and to enhance or optimise the existing
project outcomes.
GenMotion.AI is an AI tool designed
specifically for 3D animation which enables users to create
detailed 3D animations directly from text input by leveraging
carefully curated training data sourced from the gaming industry to
ensure accuracy in its 3D design. The GenMotion.AI software was
created utilising a deep understanding of animators' workflows and
needs and is ultimately aimed at enhancing user efficiency and
creativity. All training data used by GenMotion.AI is proprietary,
copyright protected and documented in a transparent fashion to
ensure traceability and to guarantee data integrity and
authenticity. Whilst GenMotion.AI was initially designed for
targeting game animators, the Board of Directors of the Company
(the "Board" or
"Directors") believes that
it has the potential to offer a wide range of professional features
allowing for precise customisation to meet detailed animation
needs.
The Group seeks to be at the
forefront of exploring the use of AI in the creation and
development of digital art assets and games to increase its
workflow and to enhance its work quality. The Directors believe
that the adoption of AI by the industry at large can improve
efficiency and enhance the visual quality of art assets, as well as
allow game artists to streamline their workflow and focus on more
complex and creative tasks that lead to faster production
cycles.
Related Party Transaction (Under Rule 13 of the AIM Rules for
Companies)
Acer Inc., via its subsidiaries
namely, Acer Gaming and Acer SoftCapital Inc., holds approximately
64.16% of the Company's issued share capital and is therefore a
related party as defined by the AIM Rules for Companies.
Accordingly, the AI Project Supplementary
Agreement is a related party transaction pursuant to Rule 13
of the AIM Rules for Companies.
The independent Directors in respect
of the AI Project Supplementary Agreement,
being the full board except for Mr Kao Shu-Kuo (Non-Executive
Director of the Company, who is Chief Operating Officer of Acer
Inc. and a director of Acer Gaming Inc.), having consulted with
Strand Hanson Limited, the Company's Nominated Adviser, consider
the terms of the related party transaction to be fair and
reasonable insofar as shareholders of the Company are
concerned.
Interested Person Transaction ("IPT") (under Catalist Rules
(as defined below))
AI Project Supplementary Agreement 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, the AI
Project Supplementary Agreement falls
within the scope of the prevailing IPT general mandate approved by
shareholders at the extraordinary meeting held on 28 October
2024.
Johnny Jan, Executive Director and Chief Executive Officer
(Founder) of Winking Studios Limited, said:
"The AI Project Supplementary
Agreement with Acer Inc. represents a
pivotal moment in our journey to revolutionise 3D animation.
GenMotion.AI is not just a tool; it is a testament to our
commitment to empower animators by integrating advanced AI
capabilities into their workflows. This collaboration combines Acer
Inc.'s technological leadership with Winking Studio Limited's
expertise in art production, paving the way for groundbreaking
innovations in animation and digital content creation. By focusing
on enhancing productivity and creativity while ensuring data
integrity and copyright compliance, we are setting a new benchmark
for AI applications in the gaming and animation industries. We are
excited to continue this partnership with Acer Inc. as we explore
the significant potential of AI-driven
solutions."
Jerry Kao, Chief Operating Officer of Acer Inc. and a member
of the Board of Winking Studios Limited,
commented:
"Our partnership with Winking Studios Limited marks a
significant step forward in integrating AI into the gaming and
digital art industries. The AI Project Supplementary Agreement underscores our shared
vision to push the boundaries of innovation with GenMotion.AI, a
tool designed to revolutionise 3D animation creation. By leveraging
cutting-edge AI technology and combining our expertise, we are not
only redefining industry standards but also empowering animators
and creators to unlock new levels of creativity and productivity.
This collaboration highlights Acer Inc.'s commitment to advancing
AI-driven applications while delivering transformative value to the
gaming and animation ecosystem. We are proud to continue this
journey with Winking Studios Limited and look forward to shaping
the future of digital content creation together."
Enquiries
Singapore
|
UK
|
Winking Studios Limited
Johnny Jan, Executive Director and
Chief Executive Officer (Founder)
Oliver Yen, Finance Director and
Group Chief Financial Officer
|
Via Alma
|
8PR
Asia (Singapore Investor Relations)
Alex Tan
+65 9451 5252
alex.tan@8prasia.com
|
Alma Strategic Communications
Justine James / David Ison / Emma
Thompson
+44 (0)20 3405 0205
WKS@almastrategic.com
|
|
|
PrimePartners Corporate Finance Pte. Ltd.
(Sponsor)
Foo Jien Jieng
sponsorship@ppcf.com.sg
|
Strand Hanson Limited
(Financial and Nominated Adviser)
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
|