Pursuant to the Agreement, the Company intends to issue 3,878,856 Class A ordinary shares, par value $0.09 per share, in a private investment in public equity ("PIPE") financing for expected gross proceeds of approximately $50.0 million. The PIPE financing is priced at US$12.89 per share.

The investor in the PIPE financing, is a financial investment institution with a focus on AI infrastructure. Under the Agreement, the Class A ordinary shares to be issued to the investor in the PIPE financing will be subject to a 36-month lock-up. The closing of the PIPE financing remains subject to customary closing conditions and is expected to occur in October 2026.

The gross proceeds from the US$50 million PIPE financing will be primarily allocated to the following two strategic priorities, with the remaining proceeds used as working capital for market expansion, recruitment of core R&D talent, and delivery of the Company’s existing AI computing and enterprise AI solutions projects:

1. Expansion of Star Distributed Intelligent Computing Centers: The proceeds are expected to be used for the procurement, deployment and technological iteration of containerized modular edge computing nodes, upgrades in unified computing capacity scheduling platform, and supporting green energy and energy storage integration projects. These investments are expected to support the fulfillment of the Company’s existing computing services contracts and enable it to serve additional enterprise AI computing demands.

2. Research, Development and Commercialization of the Lingyanmiaoyu ( referred to as ‘Lingyan’ ) Mixture-of-Experts ("MoE") Large Language Model: The Company plans to invest in enhancing AI security and privacy-preserving computing capabilities; iterating enterprise private-deployment versions; continuously optimizing the consumer-facing access portal; and establishing datasets and an AI security laboratory to support the expansion of AI token services and customized large language model projects.