CHINA RUYI (00136) subsidiary plans to invest approximately 14.2 million US dollars in AIsphere to explore innovative applications of artificial intelligence technology in film, streaming media, and game content production and operation.

CHINA RUYI (00136) announced that its indirect wholly-owned subsidiary Virtual Cinema Entertainment Limited (investor) has recently entered into a share subscription agreement with AIsphere Limited (target company) and other parties, whereby the investor conditionally agreed to invest approximately USD 14.2 million in the target company's shares (investment transaction). The Company, Wang Changhu (Mr. Wang), and the domestic entity of the target company, Beijing Aishi Technology Co., Ltd. (Aishi Technology), collectively referred to as the parties to the agreements, have also recently entered into a strategic cooperation framework agreement (the cooperation agreement, together with the share subscription agreement, referred to as the agreements). Under the cooperation agreement, the parties agreed to establish a strategic cooperation relationship and explore innovative applications of artificial intelligence technology in the production and operation of film, streaming media, and gaming content. The main cooperation areas include the following: Provide strategic advisory opinions. Subject to the provisions of the cooperation agreement, Aishi Technology and its team will provide strategic advisory opinions on the application of artificial intelligence technology in the various business sectors of the Company to help improve the production efficiency and quality of the Company's works. Artificial intelligence technology cooperation. The parties will, in good faith and based on mutual cooperation principles, jointly explore the application of artificial intelligence in the film, streaming media, and gaming fields, including but not limited to visual design for film, visual effects production, material generation for promotion, improving the efficiency of streaming media content assets and enhancing user experience, as well as the production, dissemination, and interactive experiences of gaming content. Other innovative cooperation. The parties plan to collaborate on other innovative directions, including (i) exploring the use of the Company's intellectual property resources to promote the secondary creation activities using artificial intelligence generation technology and establishing copyright protection mechanisms and content compliance mechanisms that comply with regulations; (ii) leveraging the data and experience accumulated in the film and gaming industries, combined with Mr. Wang's and Aishi Technology's artificial intelligence capabilities, to jointly develop multimodal intelligent entities that can interact with users in real time and establish emotional connections with users; and (iii) negotiating the expansion of other innovative cooperation directions based on market and technological developments. Aishi Technology is a technology company that specializes in developing large-scale artificial intelligence video generation models, world models, and related applications. Its core products currently include the artificial intelligence video generation application "PixVerse" and the real-time world model generator "PixVerseR1," with core features such as text-driven video, image-driven video, and real-time interactive video generation. Aishi Technology is a global leader in terms of monthly active users among video model technology companies and is also the first technology company globally to release real-time world model generation. In recent years, the group has continued to drive innovation and development in multiple core business areas such as film production, online streaming media, and online gaming services, actively enhancing overall market competitiveness and industry layout. The signing of this agreement aims to fully utilize its artificial intelligence technology to support the intelligent development of the group's various business areas and explore innovative applications of artificial intelligence technology in the production and operation of film, streaming media, and gaming content. Aishi Technology and its team will provide strategic advice on the application of artificial intelligence technology in the various business sectors of the Company to help improve the production efficiency and quality of the Company's works.