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Huaxia Culture Technology (01566): Negotiations are ongoing with several Japanese data center operators on potential leasing and allocation of infrastructure capacity
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Zhitong Finance App News, Huaxia Culture Technology (01566) issued an announcement. The Group is currently discussing potential leasing and allocation of infrastructure capacity with several data center operators in Japan.

The Group continues to expand its product ecosystem to intelligent, real-time interactive and spatial multimedia products. The proposed arrangement for reserved capacity is aimed at ensuring that dedicated and high-performance IT infrastructure and edge computing power can support the Group's existing AI-powered toys, interactive character intellectual property and multimedia augmented reality (AR) /virtual reality (VR) business. Deploying real-time interactive AI models and high-fidelity AR/VR streaming must have reliable high-density computing power, low latency network routing, and ensure continuous data security.

Through cooperation with professional data center operators, the Group expects to obtain reliable high-performance data center infrastructure and edge computing power without the need to incur immediate huge capital expenses on hardware ownership. This move is expected to accelerate the commercialization process of the Group's AI toys and AR/VR business, while achieving scalability and operational resilience during peak demand periods. Furthermore, the use of mature and certified data centers is expected to achieve enterprise-grade physical security, isolated edge node processing, and audit compliance, thereby reducing regulatory and operational risks. The board of directors believes that negotiating and implementing reserved capacity with professional data center operators is in the overall strategic interests of the Group and its shareholders.

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