PHANCY(06682): The core business is the operation of the group's business with computing power as the core, operating normally.

PHANCY (06682) issued an announcement, the board of directors noted that the company's stock price has recently experienced a significant decline. It has been understood that there are rumors in the market suggesting that rapid iteration of AI big models will lead to the replacement of existing business models in the software industry, thereby causing concerns about the software industry and the prospects of this group. The board of directors hereby clarifies the above rumors as follows: In recent years, the development of AI big models has accelerated, leading to a rapid growth in demand for computing power and related services. The main business of this group is precisely benefiting from this trend. As disclosed in the announcement dated November 12, 2025, as of the nine months ended September 30, 2025, 83.9% of the group's revenue came from computing power-related income, with computing power usage as the main pricing basis; only 16.1% of revenue came from software services. As disclosed in the announcement, the group's revenue increased by 36.8% year-on-year from January to September 2025, and achieved a profit for the first time in the third quarter of 2025. This strong operational performance is a direct reflection of the group's deep benefits from the high-speed growth of the AI industry. The core business of this group is centered on computing power, serving enterprise customers in various industries through AI technology to drive intelligent upgrades and comprehensive digital transformation. The rapid iteration of AI big models has significantly increased the market's demand for computing power, and has also widened a very broad space for the further development of the group's business. After conducting all reasonable inquiries, the board of directors confirms that the group's business operations are normal; and as of the date of this announcement, the company is not aware of any undisclosed insider information that should be disclosed.