C.banner to acquire controlling stake in AI firm Benyuan Zhishu

Hong Kong-listed footwear retailer C.banner International Holdings Limited has signed a definitive investment agreement to acquire a controlling equity stake in Benyuan Zhishu, a domestic artificial intelligence data service provider. The transaction, funded entirely through internal group resources, will incorporate the data firm into C.banner’s consolidated financial statements and formally establish a dual-core business framework spanning footwear and artificial intelligence data services.

Under the terms of the agreement, the acquisition will be executed via a combination of an existing equity purchase and a new share subscription. The capital raised from the share subscription is earmarked to expand Benyuan Zhishu’s production capacity and technology development. The founding team will retain a partial equity stake to align interests with the group, and the company will maintain its independent brand and operations, backed by strict data isolation mechanisms.

The acquisition marks a broadening of C.banner's corporate structure at a time when the artificial intelligence sector is experiencing a foundational shift. Industry analysts note that as public data becomes saturated and computing power grows increasingly commoditised, the primary bottleneck for artificial intelligence development has shifted from raw computational scale to the acquisition of complex, high-quality, real-world data.

Established in 2015, Benyuan Zhishu operates upstream in the artificial intelligence value chain. The company focuses on technical data services, converting human expert knowledge from fields such as mathematics, coding, law, and medicine into trainable data for artificial intelligence models. It delivers comprehensive data services for large models, world models, and embodied intelligence, serving a client base that includes large model infrastructure providers, internet platforms, game publishers, and embodied intelligence firms.

Financially, Benyuan Zhishu represents a self-sustaining entity within the artificial intelligence market, which remains heavily reliant on external financing. For the fiscal years ending 31 December 2024 and 2025, the company reported revenues of approximately RMB 146.5 million and RMB 156.2 million, respectively. Post-tax net profits for those periods stood at approximately RMB 7.1 million and RMB 11.1 million, with management accounts indicating continued revenue growth through the first five months of 2026.

For C.banner, the transaction leverages a stable traditional retail foundation. The group's core footwear business continues to generate steady operating cash flows and maintains a net cash position, eliminating the need for large-scale external financing to fund the acquisition. Beyond diversification, the group intends to apply Benyuan Zhishu’s data governance capabilities to its own footwear retail supply chain, design, and marketing segments to improve operational efficiency.

The maintained operational neutrality of the data provider is expected to protect its existing market relationships. Because C.banner does not develop proprietary artificial intelligence models, it does not compete with Benyuan Zhishu’s current clients. This structural independence allows industry competitors to continue utilising the firm as a neutral supplier.

Management at C.banner stated that high-quality data represents a scarce infrastructure component in the artificial intelligence sector. The transaction is designed to give the group exposure to a high-growth technology segment while preserving its established position in the consumer industry, creating a dual-core framework aimed at sustainable shareholder value. Benyuan Zhishu’s founder and chief executive officer, Li Niyong, is expected to issue a public letter detailing the company’s forward vision under the new ownership structure.