The board of directors of Future Data Group Limited announced that on 2 November 2023, the Company entered into a non-legally binding letter of intent (LOI) with Huaao Technology Holding Group Company Limited (Huaao, together with its subsidiaries, (Huaao Group)) to establish a strategic cooperation to carry out the business in relation to the artificial intelligence computing power integration platform. Huaao Group obtains computing resources and technical support from Sun Yat-sen University and the National Supercomputing Center Guangzhou Center to build the First Computing Power Center. The Company has a large demand for artificial intelligence computing power and may consider participate in the investment and construction of the Hong Kong International Computing Power Integration Centre (Phase II) ("Phase II Computing Power Center"). The parties to the LOI intend to co-operate to the construction of the Phase II Computing Power Center to operate the following business sectors: Computing power network construction: aggregate computing power resources to form a computing power pool to realize cross-domain computing power integration and scheduling, and provide end users with high-performance computing and related IT services through computing power PaaS, business systems and software SaaS. They provide the services including general supercomputing cloud, industrial cloud, AI cloud, etc. to unify management and sales for any cluster of institutions holding computing power. One-stop artificial intelligence empowerment service: The artificial intelligence application platform built by Huaao Group has integrated more than a hundred algorithms applications for customers to use, including astronomy and geography,
life and health, artificial intelligence, intelligent education, finance technology and entertainment sectors. This artificial intelligence application platform will continue to integrate more algorithm applications and expand them to the global market providing the parties' cooperation on integrated computing power, technology, business, and operational services as well as other computing power-related service. Based on the Company's project experience in the related fields in the Korean market, with the support of Huaao Group's technical resources and its leading position in the field of artificial intelligence computing power and algorithms in Hong Kong, to promote the parties' development of artificial intelligence computing power and artificial
intelligence applications in South Korea and further develop the strategic cooperation in various fields such as computing power leasing, computing power integration, implementation of technological achievements, and application of artificial intelligence algorithms. Scope of Strategic Cooperation: to form a joint venture company to (a) participate in the investment and construction of computing power integration centres operated by Huaao Group in various countries to provide computing power resources to local customers; (b) assist to promote and operate the artificial intelligence application platform operated by Huaao Group to overseas market as well as assisting Huaao Group in raising funds and providing all supporting resources for building a computing power network in overseas market; and (c) by combining the Company's business and experience in blockchain market and
Huaao Group's experience, technology and resources in the computing power aspect, to cooperate and jointly develop the related technology systems to develop businesses in providing customized services to corporate customers; to establish a metaverse joint laboratory to conduct in-depth research on metaverse's business applications and computing and artificial intelligence applications and computing to launch application solutions for Web 3.0; and the Company may participate in Huaao Group's investment in the construction of the Phase II Computing Power Center.