Cheer-Leading; Cheer Holding (NASDAQ: CHR) to Acquire 60% Equity Stake in ZKZG

Cheer Holding, Inc. (NASDAQ: CHR) (“Cheer Holding” or the “Company”), a leading provider of advanced mobile internet infrastructure and platform services, today announced it has entered into a non-binding investment framework agreement (the “Framework Agreement”) with all the shareholders of Beijing Zhong Ke Zhi Guo Technology Co., Ltd. (“ZKZG”), a provider of synthetic data utilizing generative AI and simulation technology. Pursuant to the Framework Agreement, Cheer Holding intends to acquire a 60% equity stake in ZKZG through a combination of share issuance and cash payment.

Details regarding the overall valuation and specific terms of the transaction will be disclosed upon the signing of definitive agreements, following satisfactory completion of due diligence, audit, and evaluation of ZKZG.

ZKZG stands out as a premier provider of synthetic data, effectively integrating generative AI with simulation technologies. Its distinguished team comprises highly qualified professionals, many of whom are graduates from top-tier universities both domestically and internationally, bringing significant academic expertise to the field. This team exemplifies diverse skill sets and an innovative spirit, driving advancements in intelligent product development and expanding application scenarios through the synergy of AI and hardware technology. ZKZG holds a substantial advantage in the application and commercialization of artificial intelligence technologies.

This proposed acquisition reflects Cheer Holding’s commitment to strengthening its presence in the artificial intelligence value chain and accelerating its growth in the AI sector, with the objective of creating transformative opportunities for the Company.