Qidian Guofeng (01280) reaches a GPU distribution cooperation agreement with Muxi Technology, entering the domestic AI computing power market.

QIDIAN GUOFENG (01280) announced that its subsidiary, Shanghai Huiliu Network Technology Co., Ltd., has entered into a one-year non-exclusive leading channel distributor cooperation agreement with the third-party Muxi Integrated Circuit (Shanghai) Co., Ltd. (Stock Code: 688802.SH), which is independent of the group and its related parties. Muxi Integrated Circuit is a leading enterprise in the "Four Dragons of Domestic GPUs" and a full-stack GPU solution provider. With a market value of billions and leading commercialization capabilities, it has become a core force in the process of domestic GPU substitution. According to the agreement, Muxi Integrated Circuit appoints Shanghai Huiliu as a non-exclusive leading channel distributor for promoting and selling Muxi Integrated Circuit's authorized products in the Chinese mainland market (excluding Hong Kong, Macau, and Taiwan). The authorized products currently include Muxi Integrated Circuit's full range of GPU products, as listed in the agreement's product list. Shanghai Huiliu agrees that the distribution price to end customers for authorized products shall not be lower than 90% of Muxi Integrated Circuit's recommended price, unless prior written consent is obtained from Muxi Integrated Circuit. According to the agreement, Shanghai Huiliu's annual procurement performance target is to purchase 2000 GPU products from Muxi Integrated Circuit in the current year. Based on current market value estimates, the potential business scale corresponding to this annual procurement framework is approximately 200 million yuan. The achievement of this performance target will be an important basis for evaluating the sustainability of the cooperation between both parties. The company believes that the signing of this agreement marks an important milestone in the group's business development. Through this cooperation, the group is officially entering the domestic AI computing hardware market, achieving a strategic transformation towards becoming a comprehensive solution provider for both software and hardware. This cooperation will integrate Muxi Integrated Circuit's high-performance domestic GPU chip technology with the group's market development capabilities to create a "Huiliu" brand domestic AI server solution, providing integrated training and inference options for large internet enterprises, AI centers, research institutions, and businesses with high computing power needs. Additionally, the "leading channel distributor" identity and project registration protection mechanism granted by the agreement will establish a unique first-mover advantage and channel barriers for the group in the competitive market. The entry into the domestic high-end hardware field is expected to open up new, sustainable revenue growth opportunities for the group and enhance overall profitability.