C.banner International Holdings Limited (Stock Code: 1028.HK, hereinafter referred to as “C.banner” or the “Group”) announced that it has signed an investment agreement with Benyuan Zhishu, a leading domestic AI data service provider, and its shareholders: The Group will acquire controlling equity in Benyuan Zhishu through existing equity purchase and new share subscription, incorporating it into the Group’s consolidated financial statements after the transaction is completed. With this, C.banner has formally established a dual-core business framework of “Footwear + Artificial Intelligence Data” while maintaining stable operations in its footwear business.
This is a strategic layout that integrates an AI data business that has demonstrated profitability and has been validated by top-tier customers over the long term—its growth is based on real revenue and profit.
I.Rationale for Data: The Competition in AI is Shifting from “Computing Power” to “Experience”
The competition in artificial intelligence is undergoing a foundational shift. Over the past decade, outcomes were mainly determined by computing power and model architecture; however, as public data is gradually absorbed by large models and computing power and algorithms become increasingly common, the next critical bottleneck is no longer “whose model is bigger,” but “who can continuously provide models with new, more complex, real-world high-quality experiences.”
This is precisely the rare and critical value of this field: computing power can be purchased, algorithms can be replicated, but scaling and verifying the transformation of expert human judgments and real-world physical interaction feedback into model-trainable data is challenging, slow, and not easily expedited by capital—making it the truly essential step in the industry. The industry has identified 2026 as the “Year of Data Scaling” for embodied intelligence, and the market is repricing accordingly: In 2025, Meta invested approximately $14.3 billion, corresponding to a valuation of around $29 billion, in data annotation company Scale AI, reflecting a shift in the perception of AI data from a “cost item” to a “strategic asset.”
II.Rationale for Benyuan Zhishu: Positioned at the Most Critical and Irreplaceable Step in the Value Chain
Benyuan Zhishu, established in 2015, operates upstream in the artificial intelligence value chain, focusing on converting human expert knowledge and experience into high-quality, trainable and verifiable data for AI models. In contrast to low-barrier general annotation services, it specializes in data services with high technological difficulty and strict professional requirements. It has grown into one of the few domestic providers capable of delivering comprehensive data services for large models, world models, and embodied intelligence, occupying a scarce position in the “Physical AI” wave.
Its competitive advantage has been forged through long-term validation by the most demanding customers and the most challenging tasks. Benyuan Zhishu serves leading domestic large model infrastructure providers, top-tier internet platforms, frontline game publishers, and leading embodied intelligence companies, undertaking high-difficulty, quality-demanding data tasks—organizing professionals in fields such as mathematics, coding, law, and medicine to perform expert-level annotations, building evaluation datasets to measure the true capabilities of models, reconstructing virtual environment data for world models, and collecting real-world physical interaction data for embodied intelligence. These collaborations require stringent entry barriers, long-term adaptation, and continuous quality validation. Benyuan Zhishu has become the exclusive data supplier for several high-value data categories for related clients, demonstrating strong customer loyalty and sustainability. With nationwide delivery centers, a crowdsourced network of hundreds of thousands of domain experts, and proprietary data platforms, Benyuan Zhishu is capable of large-scale delivery under high information security standards.
It is also a profitable AI company. For the fiscal years ending December 31, 2024 and 2025, Benyuan Zhishu achieved revenues of approximately RMB 146.5 million and RMB 156.2 million, respectively, with post-tax net profits of approximately RMB 7.1 million and RMB 11.1 million. According to its latest management accounts, its revenue for the first five months of 2026 has seen strong growth. In an AI environment heavily reliant on external financing, a data company built on real orders and revenue growth, and already profitable, is distinctive.
III.Rationale Behind the Structure: Stable Investment, Dual Engines, and Preserved Neutrality
The transaction structure balances the interests of the buyer, seller, and customers.
Stable investment: The transaction is financed using internal Group resources. The footwear business of C.banner continues to generate stable operating cash flows and maintain a net cash position, providing a financial foundation for the growing AI data business without relying on large-scale external financing.
Growth-focused Capital Allocation: The share subscription consideration in this transaction will be used to expand Benyuan Zhishu’s production capacity and technology development; simultaneously, the founding team will retain partial equity to align their interests with the Group.
Preserved Operational Neutrality: Upon transaction completion, Benyuan Zhishu will retain its independent brand and operate independently, implementing data isolation mechanisms. Since C.banner itself does not engage in AI model development nor compete with Benyuan Zhishu’s customers, industry competitors of Benyuan Zhishu’s clients can continue collaborating with the same neutral supplier with confidence. For a data company, a capital structure that does not compromise neutrality is especially crucial. Moreover, Benyuan Zhishu’s data and data governance capabilities can also be applied to the Group’s footwear retail supply chain, design, and marketing segments, enhancing the operational efficiency of the traditional core business through artificial intelligence.
IV.Management Statement
The management of C.banner stated: “We believe that high-quality data is one of the most critical and scarce infrastructures in the era of artificial intelligence. This transaction allows the Group to enter this rapidly growing sector while maintaining a stable foundation in the consumer industry. We look forward to working with Benyuan Zhishu to continuously provide ‘data fuel’ of high quality to China’s AI industry, creating sustainable long-term value for our shareholders under the dual-core business framework.”
Benyuan Zhishu’s founder and CEO, Li Niyong, will also issue a public letter on the same day to share the company’s vision and the significance of this cooperation.