China Ruyi (00136) has announced its artificial intelligence strategy, detailing how the technology will be deployed across its various business divisions. The group is actively advancing a long-term strategy to empower its content-focused operations through technology, leveraging its industrial foundation in film, gaming, streaming media, and intellectual property (IP) reserves. Through AI, the company aims to seamlessly connect scriptwriting, asset generation, distribution operations, and user interaction. The board believes AI will serve as a key driver for improving content production efficiency, optimizing cost structures, and strengthening the competitiveness of its core businesses.
The deepening application of AI is already underway across multiple segments. In streaming and proprietary content, platforms such as Pumpkin Film are heavily utilizing AI in the research, development, and production of original series and derivative content. Supported by computing clusters, the platform is enhancing its personalized recommendation and intelligent distribution networks while ensuring strict compliance with global data regulations.
In film and television production, the group is leveraging substantial cloud-rendering capabilities to shorten the production cycles of large-scale visual effects (VFX), reducing repetitive labor costs in post-production and consolidating its competitive advantage within the industry. For game development, as the group advances global IP co-development projects, overseas computing resources are being directly applied to large model training for self-developed games. Combined with AI agents like C-LIVE, the process accelerates asset generation and the creation of complex AI-driven non-player characters (NPCs), enhancing testing and iteration efficiency.
Strategically, China Ruyi has made an investment in the AI video technology firm Aish Technology, aiming to foster substantive synergies with its primary business in areas such as video generation, film special effects, and next-generation interactive content. The group has also established an AI tool matrix comprising three proprietary products—C-LIVE, KaoriGo, and Yinghuo Gongchang—covering the entire content creation pipeline, from upstream digital asset extraction and midstream script planning and material management to downstream interactive video and interactive film-game generation.
To support these initiatives, the group plans to build and enhance dedicated AI technology nodes and cloud computing capabilities, backed by strategic resources from core partners. The board emphasizes that this is not merely about renting computing power but is instead focused on developing a proprietary bottom-layer SaaS/IaaS system tailored for entertainment industry industrialization, aiming to consolidate core capabilities and upgrade business models. On September 16, 2026, the group's subsidiary Virtual Cinema Culture Limited (as client) entered into a cloud service agreement with independent third-party supplier Superpower X AI (Singapore) Technology Pte. Ltd. Under this agreement, the supplier will procure and provide cloud services to the client, directly or through its third-party partners, enabling the client to access the computing resources required to support its business needs.
Key terms of the service agreement include an initial service term of sixty (60) months (five years) commencing from the actual service start date, with an option for the client to extend for an additional twelve (12) months once upon expiry. The client is required to prepay the total monthly recurring fees for the entire initial service term in one lump sum after certain conditions are met or waived, with these fees offset monthly against the prepayment during the term. The supplier must ensure the service meets agreed service level standards, providing service level credits if standards are not achieved. Additionally, the supplier retains ownership, possession, and operational control of all managed hardware at all times, with the client having no right to possess, control, or direct the deployment of any hardware.
While prioritizing internal core research and production needs, the group may, depending on resource availability and market demand, allocate idle AI-generated content (AIGC) platform resources and cloud computing power to undertake similar industry demand externally. This would improve resource utilization efficiency and generate incremental revenue. However, such external output is considered only supplemental, and the group's strategic focus remains firmly on content production as its core development direction.