The Company has secured a $1.3 million convertible note agreement with an institutional investor. This capital, along with ongoing financing initiatives, will directly fuel the "Vertically Integrated Ecosystem" strategy led by Vice President Mr. Siyang Hu, accelerating the Company's evolution from a system integrator to a developer of proprietary underlying core chips.

Capitalizing on the Blueprint: Strategically Launching the Chip Business Unit

To translate its strategic blueprint into tangible commercial assets, 3 E Network announced that it is utilizing recently raised and future capital to officially initiate the comprehensive formation of its Chip Business Unit (CBU). Capital allocation will strictly adhere to a "pragmatic, efficient, and output-oriented" approach, deploying funds across the following four concrete execution pillars:

• Establishing R&D Hubs and Recruiting Industry Elite: Funds will be utilized to set up dedicated semiconductor R&D centers and recruit top-tier global talent with extensive tape-out experience in advanced nodes. By assembling a battle-tested team covering chip architecture definition, underlying hardware development, and firmware engineering, the Company aims to build a robust proprietary R&D engine.
• Accelerating the Development of Core Storage Chips: Capital will inject momentum into hardcore R&D, advancing the development of proprietary storage controller chips specifically customized for AI all-flash scenarios. The investment will cover the complete product lifecycle from underlying architecture design to final tape-out, with a core focus on breaking underlying I/O bottlenecks in AI compute.
• Acquiring Critical IP Licenses and Core Design Tools: Breakthroughs in core technology require mature underlying ecosystem support. Dedicated funds will be allocated to procure industry-leading Electronic Design Automation (EDA) toolchains and acquire critical semiconductor intellectual property (IP) licenses. This strategic investment will significantly shorten the R&D cycle and mitigate underlying development risks.
• Strengthening Supply Chain Synergy and Securing Manufacturing Capacity: To ensure seamless commercial mass production in the future, a portion of the funds will be used to proactively lock in advanced foundry and packaging capacity. Concurrently, the Company will make strategic procurements of core electronic components, ensuring delivery continuity and cost advantages from underlying chips to high-end compute systems.

Strategic Continuity: Driving Synergy and Completing the AI Compute Value Chain

From the previously announced blueprint for AI all-flash servers and heterogeneous computing to the capital-backed rollout of the Chip Business Unit, 3 E Network is demonstrating exceptional execution by completing the critical leap from "architectural design" to "silicon-level execution." By leveraging this capital, the Company not only accelerates the development of proprietary storage chips but also directly empowers its upcoming high-performance AI server matrix with these underlying semiconductor innovations. This seamless integration from chip logic to system delivery will maximize the true value of hardware-software co-design.

"Innovation in the semiconductor industry is a relay race of both technology and capital," stated Mr. Siyang Hu, Vice President of 3 E Network. "The recent institutional funding marks a solid beginning to our proactive financing roadmap. By officially establishing the Chip Business Unit, we gain true control over the foundational layer of our infrastructure. This ensures we are no longer constrained by the limitations of traditional merchant silicon, allowing us to imprint our concept of ‘software-defined compute' directly onto proprietary custom logic circuits, delivering intelligent computing foundations with ultimate energy efficiency to global data centers."

Dr. Tingjun Yang, Chief Executive Officer of 3 E Network, added, "3 E Network is on a critical upward trajectory in its transformation into a full-stack AI infrastructure provider. Our proactive financing strategy in the capital markets is designed precisely to provide sustained financial resources for building this profound technological moat. Looking ahead, we will rely on robust capital support to drive the efficient execution of our strategic blueprint. We are committed to translating our technological advantages into a cross-cyclical commercial moat, thereby creating sustained, long-term strategic value for our global shareholders."