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

CHINA RUYI (00136) announces that recently, its indirect wholly-owned subsidiary Virtual Cinema Entertainment Limited (investor) and AIsphere Limited (target company) have entered into a share subscription agreement, under which the investor has conditionally agreed to invest approximately $14.2 million in the target company's shares (investment). The company, Mr. Wang Changhu (Mr. Wang), and the domestic entity of the target company, Beijing Aishi Technology Co., Ltd. (Aishi Technology), together with the company and Mr. Wang, are collectively referred to as the parties) have also recently entered into a strategic cooperation framework agreement (cooperation agreement, together with the share subscription agreement referred to as the agreement). Under the cooperation agreement, the parties agree to build a strategic cooperation relationship and explore the innovative application of artificial intelligence technology in the production and operation of film, streaming media, and gaming content. The main cooperation contents include: Provide strategic advisory opinions. Subject to the terms 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 enhance the production efficiency and quality of the company's works. Artificial intelligence technology cooperation. The parties will, based on the principle of good faith cooperation, jointly explore the application of artificial intelligence in the fields of film, streaming media, and gaming, including but not limited to visual design, visual effects production, promotional material generation, improving the efficiency of streaming media content assets utilization and optimizing user experience, as well as production, dissemination, and interactive experience of gaming content. Other innovative cooperation. The parties plan to explore other innovative directions for cooperation, 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 regulatory requirements; (ii) utilizing the data and experience accumulated by the company in the film and gaming industries, combined with Mr. Wang's and Aishi Technology's artificial intelligence capabilities, to jointly develop multimodal intelligent bodies that can interact with users, generate real-time emotions, and (iii) negotiate the expansion of other innovative cooperation directions based on market and technological developments. Aishi Technology is a technology company mainly engaged in the development of artificial intelligence video generation large models, world models, and related applications. Its core products currently under development include the artificial intelligence video generation application "PixVerse" and the real-time world model generation "PixVerseR1", with core functions such as text-based video, image-based video, and real-time interactive video generation. Aishi Technology is the global leader in terms of monthly active users in the video large model technology company and the first technology company worldwide to release real-time world model generation. In recent years, the group has been continuously promoting innovation and development in various core business areas such as film production, online streaming media, and online gaming services, actively enhancing overall market competitiveness and industrial layout. The signing of this agreement aims to fully leverage its artificial intelligence technology to support the intelligent development of the group's various business sectors and jointly explore the innovative application 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 enhance the production efficiency and quality of the company's works.