ITC NEOCLOUD (00199) has established an AI business management structure.

ITC NEOCLOUD (00199) announces that, to assist the Company and the Board in developing, operating and supervising the AI business, the Group has established an AI business management structure, namely the AI Business Management Committee, which is supervised by the Board. The AI Management Committee will be authorized to make operational decisions within the scope of its terms of reference, and the relevant professional functional departments will also participate in the review process and provide opinions. The AI Management Committee is in substance the Group's management committee, not a committee under the Board. The AI Management Committee is chaired by Mr. Cao Xinwei, an Executive Director, who serves as the head of AI business, and comprises Mr. Sun Wenzheng, who serves as the head of technology, and the Group's head of finance. The head of technology is responsible for technical assessment, while the head of finance is responsible for reviewing budgets, cash flow and financial risks. The AI Management Committee is also supported by technical personnel in conducting technical reviews on infrastructure, system architecture, delivery capability and operational reliability, to ensure that commitments made to customers, resource arrangements and capital allocation are commensurate with the Group's actual capacity to perform its contractual obligations under the AI business. With respect to the AI infrastructure operations business, the Group plans to develop an artificial intelligence data center (AIDC) on the relevant land parcel in the Xiaoyangkou area of Rudong County, Nantong City, Jiangsu Province. The Group is currently advancing the preparatory work for the above AIDC project through a dedicated project company, including having engaged Jiangsu Engineering Consulting Center Co., Ltd. (a company funded by Jiangsu State-owned Capital Investment and Operation Group Co., Ltd.) as an independent professional consultant to provide professional support for the project's feasibility study, energy assessment and related project filings; is advancing government cooperation agreements, Phase 1 land arrangements, energy assessment and coordination of customer demand; and is continuously studying and advancing cooperation on direct green electricity supply with a large state-owned energy enterprise to meet the project's requirement for pure green electricity and to invest in part of the power infrastructure. The Group is also advancing an AIDC project in Hong Kong. The Group has engaged a local external professional consultant to carry out preliminary construction planning and design, and is advancing site selection options and the preparation and submission of an expression of interest (EOI). The Group has also further negotiated with potential power suppliers regarding the power supply for the project and reached a preliminary consensus. The specific power supply capacity, connection scheme, engineering arrangements, division of responsibilities and commercial terms remain subject to further documentation, technical studies and completion of approval procedures, and do not at this stage constitute any binding power supply arrangement. With respect to the AI computing power orchestration and cloud services business, the Group has provided dedicated computing power services and shared computing power cloud services to a number of customers, and has entered into relevant procurement and customer contracts, i.e. obtaining the right to use third-party computing power resources according to customer demand. The Group is continuing to advance negotiations with customers and suppliers, and will gradually expand its services after completing resource verification and finalizing commercial terms. With respect to the model services and application platform, the Group has launched a model service platform and commenced paid services, providing customers with model invocation and related supporting services by integrating third-party models and computing power resources. The Group is continuously optimizing platform functions, service performance and user experience based on operational feedback.