2025/2026 To shareholder letter

To Our Valued Shareholders,

As the 2025/2026 fiscal year draws to a successful close on March 31, it is my privilege, on behalf of Cloud-LED, to report on our business progress over the past year and share our strategic outlook for the future. Looking back, we have adhered to a philosophy of "steady strides and meticulous cultivation," achieving solid results in both high-end technology R&D and the expansion of the education market.

Deepening R&D: Initial Success in AI Robotics

In 2025, we earned the trust of a listed company and were invited to undertake the prototyping of customized robots. This was not merely a project; it was a critical milestone for Cloud-LED to validate the market potential of our AI robotics capabilities.

Our team demonstrated extreme focus and precision. In the nine months following the project's inception, we invested over 1,500 man-hours into design and rigorous fine-tuning, completing the "foundational" version of the prototype. These 1,500 hours represent our unwavering commitment to technical detail. As designers, we are now actively exploring the feasibility of transitioning this design into mass production, striving to strike the optimal balance between technical excellence and commercial viability.

Leveraging Strengths: Strengthening Supply Chain and Production

Regarding our production strategy, we are fully leveraging Cloud-LED’s position as the exclusive Hong Kong agent for Billion Electric. Based on years of mutual trust and cooperation, we are carefully evaluating the possibility of engaging Billion Electric for the ODM/OEM production of this AI robot prototype.

Finding a production partner who possesses high technical barriers to entry while strictly adhering to commercial confidentiality is paramount. Our partners are naturally one of our primary considerations, a partnership that would help us steadily push our R&D achievements into the market.

Capitalizing on Policy Tailwinds: Steady Growth in the EdTech Market

The Education Technology sector remains another major engine of growth for us. The Education Bureau has officially announced that in 2026, STEM will be incorporated into the "Science" curriculum as a formal subject in primary schools of Hong Kong. With the reform of the Secondary School admission mechanism—where weighting for Chinese, English, Mathematics, and General Studies will be reduced to allocate scores to "Science,"—scientific education has formally taken an important stage.

Our strategic positioning over the past few years is now bearing fruit. Last August, we established a strategic partnership with UPEP (formerly Oxford University Press), successfully introducing the "Gecko Robot" into campuses. Subsequently, the "Pineapple Bun Robotic Turtle," launched at Megabox in November 2025, also successfully transformed into school curriculum material through UPEP’s network. Adoption by numerous primary and secondary schools serves as proof that our products have gained market recognition for both their academic value and engagement.

Optimizing Governance: Introducing Strategic Opportunities

To prepare for the next stage of development, we are dedicated to a systematic upgrade of our internal enterprise structure. We are comprehensively optimizing our financial, technical, marketing, and sales processes, and preparing clearer, more comprehensive annual data reporting.

Regarding capital cooperation, given Billion Electric's satisfaction with the procurement of router products for Citybus and their previously expressed interest in their further support, Cloud-LED — as their exclusive agent in Hong Kong—is in a favorable position. We will carefully explore opportunities to introduce key strategic investors to deepen relationships and build a stronger moat for the company's long-term development.

Looking Ahead

Looking to the coming year, we plan to participate in the EdTech Exhibition, aiming to radiate our successful experience in Hong Kong to broader markets.

As the 2025/2026 fiscal year concludes, we are working closely with an accounting firm to prepare a detailed annual report. Simultaneously, in compliance with bank requirements, we are submitting detailed company information to be classified within the scope of "Digital Adoption" technology companies. We look forward to presenting you with more complete data and a clearer blueprint in due course.

Thank you to all shareholders for your continued trust and support of Cloud-LED. I wish you all good health and success in the new year as we work together to create even greater achievements!

Sincerely,

CEO

Cloud-LED

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