FOURTH PARADIGM (06682) has issued an announcement addressing recent significant declines in its share price. The Board noted that market rumors have emerged suggesting rapid iteration of AI large models could replace existing business models in the software industry, raising concerns about the sector's and the Group's prospects. The Board hereby clarifies these rumors as follows: In recent years, the development of AI large models has accelerated, driving rapid growth in demand for computing power and related services. The Group's primary business operations directly benefit from this trend. As disclosed in the Company's announcement dated November 12, 2025, for the nine months ended September 30, 2025, 83.9% of the Group's revenue was derived from computing power-related income, primarily based on computing power usage metrics. Only 16.1% of revenue came from software services. The announcement also disclosed that the Group's revenue for the period January to September 2025 increased by 36.8% year-on-year, achieving its first quarterly profit in the third quarter of 2025. This strong operational performance directly reflects the Group's significant benefit from the high-growth AI industry. The Group's core business focuses on computing power, providing AI technology services to enterprise clients across various industries, empowering them to achieve intelligent upgrades and comprehensive digital transformation. The rapid iteration of AI large models has significantly increased market demand for computing power, creating substantial growth opportunities for the further development of the Group's business. After making all reasonable inquiries, the Board confirms that the Group's business operations are normal. Furthermore, as of the date of this announcement, the Company is not aware of any inside information that should have been disclosed but has not been.
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