The board of directors of Culturecom Holdings Limited announced that on 18 November 2022, company's subsidiary Dragon Chip Brain-Inspire Intelligent Technology (Zhuhai Hengqin) Co., Ltd., iFlytek Co., Ltd. and Imitation Brain Technology (Shenzhen) Co., Ltd. entered into a strategic framework agreement for a term of three years from the date of the Framework Agreement. The parties to the Framework Agreement agree to exchange and cooperate with each other in respect of artificial intelligence ("AI") technology. The parties intend to, among others, promote and explore the joint research and development of Chinese AI; jointly develop Dragon Chip, an offline Chinese voice recognition chip (natural language chip); create a benchmark for Chinese AI speech recognition and comprehension chips; and increase the market share of smart chip products (the "Cooperation").

The parties will enter into formal agreement in respect of any concrete and specific project under the Cooperation. The Cooperation will leverage on iFlytek's cutting-edge technology in AI speech recognition and AI production ecology, Imitation Brain's experience in the application, technological support and sales and promotion of Chinese AI, and the Group's "Dragon Code" system, the world's first Chinese Common Sense comprehension system, to jointly create Dragon Chip, an industry-leading Chinese AI speech recognition and comprehension chip and chip products which will have a wide range of applications in smart homes, smart hardware, smart cities and other fields. The parties expect that the prototype of Dragon Chip will be available by the end of this year and plan to release Dragon Chip in the first quarter of 2023.

The parties believe that the Cooperation will better integrate the AI strengths and advantages of the parties to the Framework Agreement and will enhance the competitiveness of their respective products.