B.DUCK SEMK has reached a strategic cooperation agreement with Cloud Port to jointly develop, manufacture, and commercialize the "B.Duck" AI companion hardware product line.

B.DUCK SEMK(02250) has announced that the company has entered into a cooperation agreement with Yungang Companion Xinzhiren (Langfang) Technology Co., Ltd. (Yungang), a company mainly engaged in the research and development and sales of Siasun Robot&Automation and AI companion products. As of the date of this announcement, Yungang and its ultimate beneficial owners are independent from the company and its related parties. According to the agreement, the Group and Yungang have established a comprehensive strategic partnership to leverage the Group's expertise in intellectual property (IP) operations and brand management, as well as Yungang's artificial intelligence (AI) technology and hardware manufacturing capabilities. As a core component of this strategic cooperation, the two parties will jointly develop, manufacture, and commercialize three AI companion hardware product lines under the "B.Duck" family brand, including: AI companion figures, AI companion hangings, and AI companion toys. Under the agreement, the development and production costs of the collaborative products will be shared by Yungang and the company in a 70:30 ratio, with the initial total investment for the first batch of products set at approximately RMB 10 million (with the company's share estimated to be around RMB 3 million), subject to adjustments based on the final material list and confirmed purchase orders. Similarly, the net profits generated from sales revenue after deducting channel costs, shared costs, and relevant taxes will be distributed between Yungang and the company in the same ratio, with the company not charging any IP licensing fees in the initial stage of the cooperation. Furthermore, the two parties will jointly establish an AIGC (Artificial Intelligence Generated Content) content co-creation platform centered around the collaborative IP, providing AI-driven IP content production and virtual companion services to corporate and consumer users. The operating income of the AIGC platform will be distributed between Yungang and the company in a 70:30 ratio after deducting computational costs and platform operating costs. This cooperation combines Yungang's AI capabilities and hardware engineering with the Group's well-known B.Duck IP matrix and design expertise, covering the entire value chain of product design, AI technology, hardware manufacturing, and marketing channels. The cooperation aims to seize the trend of the industry shifting from price competition to value creation, and expand the Group's presence in the AI-driven consumer product sector. The Board believes that this strategic cooperation will contribute to the long-term growth of the Group and its leading position in the IP-driven consumer market, by expanding the Group's presence in the AI companion product sector, deepening IP user penetration, and creating a replicable cross-category cooperation model to build a trendy consumer ecosystem covering diverse lifestyle scenarios.