Shenzhen Xunce Technology Announces Strategic Partnership with Shenzhen Kaihong Digital Industry Development

Key Highlights for Investors

• Shenzhen Xunce Technology Co., Ltd. (Stock Code: 3317) has entered into a significant strategic cooperation agreement with Shenzhen Kaihong Digital Industry Development Co., Ltd.
• Shenzhen Kaihong is a prominent player in the OpenHarmony ecosystem, focusing on foundational software services for the digital and intelligent transformation of industries.
• This partnership is set to leverage both companies’ strengths to develop advanced AI and data tokenization solutions integrated with smart terminal operating systems.
• The collaboration could enhance Shenzhen Xunce’s competitiveness in AI, data assetization, and cross-industry data circulation, potentially having a material impact on future business and share value.

Details of the Strategic Cooperation

The Board of Directors of Shenzhen Xunce Technology has announced a voluntary strategic cooperation with Shenzhen Kaihong Digital Industry Development, a leader in OpenHarmony ecosystem technology. The agreement aims to integrate the two companies’ resources and industry advantages for the joint development of a Token factory system and expansion into smart terminal operating systems. This initiative marks an important extension of Shenzhen Xunce’s data tokenization capabilities into the rapidly growing domain of smart devices and the Internet of Things (IoT).

Key Areas of Cooperation

1. Joint Development of AI-Powered End-to-End Data Infrastructure:
   • The companies will collaborate on an integrated AI data infrastructure, combining underlying operating systems, end-to-end data governance, and vertical-specific AI models.
   • This integrated platform will ensure secure and reliable native data, support traceable and observable data cleaning, annotation, industry-specific semantic processing, model training, and data tokenization.
   • The collaboration will target deployment in verticals such as energy, water utilities, agriculture, and smart cities. The goal is to address the challenges of data silos and facilitate seamless end-to-end AI tokenized applications.
2. Exploring AI Application Scenarios and Business Integration:
   • Both parties will deeply combine their industry and ecosystem resources, focusing on sectors like manufacturing, energy, transportation, and smart cities.
   • The partnership will provide scenario-based solutions for device coordination and data collection, and share experience in monetizing data value, especially in finance.
   • They aim to identify high-value, reusable vertical use cases, prioritize flagship pilot projects to validate business value, and reduce expansion costs, driving both commercial returns and ecosystem scale.
3. Development of a Token Factory Business Model and Ecosystem:
   • The companies will jointly establish a data Token factory integrated with Shenzhen Kaihong’s smart terminal operating systems, leveraging traceable, verifiable, and tamper-proof data.
   • Shenzhen Xunce will contribute its expertise in data assetization, tokenization processing, and the development of cross-industry data circulation systems.
   • The Token factory initiative aims to process raw data into tradable, quantifiable, priceable data tokens, ensuring compliant, end-to-end data monetization, transparent value distribution, and robust privacy protection.

About Shenzhen Kaihong Digital Industry Development

Shenzhen Kaihong Digital Industry Development is a Chinese leader in the OpenHarmony ecosystem, providing foundational software for digital transformation across industries. Its core products include the Kaihong Secure Digital Foundation, featuring KaihongOS (the first industry-wide operating system based on open-source HarmonyOS) and Kaihong Super Device Management Platform (KaihongOS Meta). These systems provide secure, multi-device capabilities, integrate AI and digital twin technologies, and are widely adopted in smart transportation, smart cities, energy, education, and healthcare.

Notably, Shenzhen Kaihong is recognized for its leadership in the joint development of multiple SIG groups and holds a top position in core technology innovation for domestic operating systems in China.

Investor Considerations and Potential Share Price Impact

• This strategic partnership could significantly enhance Shenzhen Xunce’s technological capabilities and market reach, positioning it for leadership in AI and data monetization solutions for smart devices and industrial verticals.
• The establishment of a Token factory and cross-industry data circulation system may unlock new revenue streams and increase the company’s valuation.
• The agreement is a memorandum of understanding; specific business terms and cooperation models will be finalized in subsequent negotiations and subject to board and regulatory approval.
• Shareholders and investors are advised to exercise caution as the partnership, while promising, is at a preliminary stage. Formal business contracts and more definitive financial impacts will be disclosed in due course.

Directors and Governance

As of the announcement, the board comprises experienced executive, non-executive, and independent directors, indicating strong corporate governance.

Conclusion

This strategic cooperation has the potential to be highly price-sensitive and transformative for Shenzhen Xunce Technology. Investors should closely monitor future announcements as the partnership progresses towards formal agreements and the roll-out of joint projects.

Disclaimer: The above is an informational summary for investors. The strategic partnership is currently at the memorandum of understanding stage, and no binding agreement has yet been signed. Future cooperation is subject to negotiation, board, and regulatory approval. Shareholders and potential investors should exercise caution when trading shares of Shenzhen Xunce Technology Co., Ltd.

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