HONG KONG SAR - Media OutReach Newswire - 20 May 2026 - Phancy Group Co., Ltd. (Stock Code: 6682.HK), a leading Artificial General Intelligence (AGI) company, today announced that it has entered into a strategic cooperation and joint venture framework agreement with Huanxi Media Group Limited ("Huanxi Media", stock code: 1003.HK), a prominent player in film and television entertainment.

By combining Phancy's comprehensive full-stack AI capabilities with Huanxi Media's extensive film and television data, intellectual property (IP) assets, and production expertise, the two companies aim to drive the entertainment industry's shift from digitalization to true intelligence.

Under the framework agreement, the parties plan to set up a joint venture as the collaboration platform. They will pursue in-depth cooperation across several key areas, including data collaboration, development of large models and Agents for film and television, exploration of AI applications in new entertainment scenarios, AI-powered joint production and content creation, IP derivative development, and broader resources collaboration.

In addition, the two parties have signed a framework agreement for large model API services. Huanxi Media intends to adopt Phancy's advanced large model and API services, with a targeted cumulative service value of no less than US$200 million through Token consumption over the next three years. The substantial long-term commitment highlights strong market confidence in the reliability and commercial strength of Phancy's AI Platform, and is expected to provide the Company with stable, recurring revenue streams.

Dr. Dai Wenyuan, Founder and CEO of Phancy, said: "The entertainment sector is one of the most valuable and promising application scenarios for AI. This in-depth strategic partnership with Huanxi Media represents a strong alliance between our two companies and our shared vision to build a new industry ecosystem. As a leader in full-stack AI infrastructure and technical services, we at Phancy will fully leverage our core strengths in large model development, Agentic AI, heterogeneous computing power scheduling, and our Token ecosystem to empower the entire value chain of the entertainment industry. Moving forward, we will work closely with Huanxi Media, combining our respective technological advantages and industry resources to unlock new growth potential in the AI-powered entertainment sector."

Strategic Significance of the Partnership

Phancy's full-stack AI capabilities have taken a major step forward, moving from general platform services into deep vertical integration within the entertainment ecosystem. By embedding its self-developed AI technologies into Huanxi Media's rich data, production environments, and IP assets, Phancy can integrate cutting-edge tools directly into content creation and daily operations, turning advanced technology into real business impact.

The film and television industry is going through a fundamental transformation. From assisted creation to intelligent production, and from virtual actors to interactive film and gaming experiences, AI is reshaping the entire content production process. The two parties will collaborate on frontier areas such as co-productions, digital human actor development, AI-generated realistic dramas, and interactive film-game projects. This partnership will move AI beyond a supporting tool and make it a core driver of content creation. Leveraging Phancy's strengths in domestic computing power adaptation and integrated hardware-software solutions, the collaboration will significantly reduce the barriers and costs of using AI in the entertainment industry and speed up its adoption in actual productions.

This strategic alliance is an important move for Phancy as it expands its presence in real-world AI applications and deepens its industry impact. It is also expected to set a new benchmark for intelligent transformation in the entertainment sector. The two companies will continue to explore innovative ways to integrate AI with entertainment, create high-quality intelligent content, and help drive the industry into a new stage of high-quality intelligent development.