Subsidiary signed agreement for development of AI-powered used mobile phone sales and acquisition AI agent system.
“We may seek to diversify and enhance our business prospects by developing, investing in or acquiring AI-related systems or products through our subsidiaries. For example, On June 8, 2026, we entered into a Development Services Agreement, through a subsidiary, with a Hong Kong based AI service provider that will develop an AI-powered used mobile phone sales and customer acquisition AI agent system on behalf of us. These initiatives, although designed to improve our performance in the recycled consumer electronic devices industry, may require significant capital expenditures and management resources, and we may lack the experience, technical expertise, personnel, customer relationships and other resources necessary to compete successfully with rapidly evolving AI technologies. We may also face intense competition, technological obsolescence, regulatory uncertainty, difficulties integrating acquired technologies, and challenges in developing commercially viable products or services. Such initiatives may not become profitable within our anticipated timeframe, or at all, and may divert management’s attention and resources from our existing operations. If our diversification efforts are unsuccessful, we may incur substantial costs, losses or impairment charges, which could materially and adversely affect our business, financial condition, results of operations and prospects.”