CA CULTURAL (01566): Currently in discussions with multiple data center operators in Japan regarding potential leasing and allocation of infrastructure capacity

CA CULTURAL (01566) announces that the Group is currently in discussions with multiple data center operators in Japan regarding the potential leasing and allocation of infrastructure capacity. The Group continues to expand its product ecosystem into smart, real-time interactive and spatial multimedia products. The proposed arrangement for reserved capacity is intended to ensure that dedicated, high-performance IT infrastructure and edge computing power can support the Group's existing AI-driven toys, interactive character intellectual property, and multimedia augmented reality (AR)/virtual reality (VR) businesses. Deploying real-time interactive AI models and high-fidelity AR/VR streaming requires reliable high-density computing power, low-latency network routing, and 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 incurring immediate substantial capital expenditure on hardware ownership. This is expected to accelerate the commercialization of the Group's AI toy and AR/VR businesses, while achieving scalability and operational resilience during peak demand periods. In addition, the use of established and certified data centers is expected to enable enterprise-grade physical security, isolated edge node processing, and audit compliance, thereby reducing regulatory and operational risks. The Board believes that negotiating and implementing reserved capacity with professional data center operators is in the overall strategic interests of the Group and its shareholders.