Zhong Xu Future (09890) announced that ChatGPT emerged at the end of 2022, causing a wave of revolutionary and transformative technology in the practical field of artificial intelligence (AI) generated AI (AIGC). In order to integrate the industrial development opportunities brought by AIGC technology changes and the needs of expanding the group's global business, the Board of Directors is pleased to announce the establishment of a wholly-owned subsidiary in Hong Kong, China - Hong Kong Yuan Future Unlimited Company (Hong Kong Yuan Future Limited) (Yuan Future). The company is expected to allocate HKD 100 million in internal resources as operating funds for Yuan Future. Yuan Future will mainly engage in the application development of AI technology in the game industry, dedicated to integrating AI technology into modules such as artistic production, creative copywriting, video generation, intelligent assistants, and collaborative work in the game, and further optimizing game operations and promotions using AI algorithms and AIGC technology to create new ways of playing and new experiences for players. Yuan Future will also use it to purchase or invest in overseas Internet projects related to games and other synergistic effects with the group's business.

Prior to the establishment of Yuan Future, the Group used AI technology for precise game marketing. The Group uses the self-developed intelligent terminal user participation platform "Luoshu System", the business intelligence analysis system "Hetu System", and the "X" intelligent marketing platform to conduct precise game marketing and deep operation to meet the needs of the game advertising marketing field. Based on the group's research and understanding of the AIGC related fields, as well as combining industry development and actual business, the Board of Directors believes that if the group fails to keep up with the AI industry changes in time, it may be in an unfavorable position in the market competition in the future. The establishment of Yuan Future will help the group to explore the integration and innovation of cutting-edge technologies such as AI technology, big data, with the group's business, build a game operation full-stack ecology covering content generation, distribution and marketing, customer service, data analysis and monitoring, and promote the development of a multi-category digital product matrix, creating new profitable growth points.

The Board of Directors also believes that with the group's successful experience in launching and operating online games in mainland China, the group has the ability to study and implement new game launch and operation strategies in different regions, and extend these successful experiences to Southeast Asia and European and American markets, promoting the group's global development strategy and creating new revenue and enhancing the group's market visibility.