BEIJING, Feb. 25, 2025 – Cheer Holding, Inc. (NASDAQ: CHR), a leading provider of mobile internet infrastructure and platform services, announced today that it has entered into a non-binding investment framework agreement (the “Framework Agreement”) with all shareholders of Beijing Zhong Ke Zhi Guo Technology Co., Ltd. (“ZKZG”), a synthetic data provider using generative AI and simulation technology. According to the Framework Agreement, Cheer Holding plans to acquire a 60% equity stake in ZKZG through a combination of stock issuance and cash payment.

Details on the overall valuation and specific terms of the transaction will be released after the signing of definitive agreements, pending successful completion of due diligence, audit, and evaluation of ZKZG.

ZKZG is recognized as a top synthetic data provider, integrating generative AI with simulation technologies. Its team consists of highly qualified professionals, many of whom are graduates of leading universities both in China and internationally, bringing substantial academic expertise to the field. This team demonstrates diverse skills and an innovative spirit, driving advancements in intelligent product development and expanding application scenarios through the integration of AI and hardware technology. ZKZG has a significant advantage in the application and commercialization of artificial intelligence technologies.

This proposed acquisition demonstrates Cheer Holding’s dedication to strengthening its position in the artificial intelligence value chain and accelerating its growth in the AI sector, aiming to create transformative opportunities for the Company.

About Cheer Holding, Inc.

As a prominent provider of next-generation mobile internet infrastructure and platform services in China, Cheer Holding is focused on building a digital ecosystem that integrates “platforms, applications, technology, and industry” into a unified digital eco-system, creating a new, open business environment for web3.0 that utilizes AI technology. The Company is developing a 5G+VR+AR+AI shared universe space based on cutting-edge technologies including blockchain, cloud computing, extended reality, and digital twin.

Cheer Holding’s portfolio includes a wide array of products and services, such as CHEERS Telepathy, CHEERS Video, CHEERS e-Mall, CHEERS Open Data, CheerReal, CheerCar, CheerChat, Polaris Intelligent Cloud, AI-animated short drama series, short video matrix, variety show series, Livestreaming, and more. These offerings provide various application scenarios that seamlessly blend “online/offline” and “virtual/reality” elements.

With “CHEERS+” at the core of Cheer Holding’s digital ecosystem, the Company is dedicated to using innovative product applications and technologies to drive its long-term sustainable and scalable growth.

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Safe Harbor Statement

Certain statements in this release are “forward-looking statements” under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose,” and variations of these words or similar expressions (or their negative forms) are intended to identify forward-looking statements. These statements are not guarantees of future performance, conditions, or results, and involve risks, uncertainties, assumptions, and other important factors, many outside the Company’s control, that could cause actual results to differ materially from those discussed in the forward-looking statements. Key factors include: the ability to manage growth; the ability to identify and integrate future acquisitions; the ability to obtain additional financing to fund capital expenditures; fluctuations in economic and business conditions; costs or other factors affecting profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the occurrence of any event, change, or circumstance that could affect the Company’s ability to continue successful development and launch of its metaverse experience centers; the ability to acquire 60% of the equity interests of Beijing Zhong Ke Zhi Guo Technology Co., Ltd.; the possibility that the Company may not succeed in developing its new lines of businesses due to changes in the business environment and technological developments, competition, changes in regulation, or other economic and policy factors; disruptions or business interruptions that may affect the operations of our products and services; the possibility that the Company’s new lines of business may be adversely affected by other economic, business, and/or competitive factors; and other factors, risks, and uncertainties set forth in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company’s latest Annual Report on Form 20-F filed with the SEC on March 14, 2024, as amended. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

For investor and media inquiries, please contact:
Wealth Financial Services LLC
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)

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