Cheer Holding Launches Beta Testing of Klon AI for Overseas Users

— Company’s First Next-Generation AI Portrait and Digital Identity Creation App Marks a Key Step in Global Expansion —

BEIJING, April 06, 2026 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. (NASDAQ: CHR) ("Cheer Holding" or the "Company"), a leading provider of advanced mobile internet infrastructure and platform services, today announced that its first dedicated overseas AI-powered product, Klon AI, has officially entered beta testing for overseas users. The Company has begun rolling out initial testing spots to users in Asia, Latin America, and North America.

Klon AI is a next-generation AI-driven portrait and digital identity creation application, positioning Cheer Holding at the forefront of the AI visual generation and personal digital identity space. The beta launch represents a significant milestone in the Company’s global expansion strategy to become a global leader in AI-powered digital ecosystems.

Redefining Personal Visual Expression: From Photography to AI-Generated Digital Identity

Klon AI leverages generative AI technology to transform traditional portrait creation. Users can generate high-quality personal portraits and build an evolving AI digital identity without the need for photography equipment or professional production teams.

Unlike traditional image editing tools, Klon AI shifts the creative experience from one-off image creation to a continuous visual identity system, enabling users to build a consistent and personalized visual content framework in the social media era.

Core Capabilities: AI Portrait × Digital Twin

Klon AI will offer several core capabilities:

· AI Portrait Generation Engine: Powered by advanced generative models, it supports high-fidelity portrait generation across a wide range of styles.

· Global Scene Library: Over 600 scene templates covering fashion, lifestyle, holidays, family, and more.

· AI Digital Twin: Allows users to create a consistent personal visual model for ongoing content creation.

· Social-First Content Generation: Enables one-click conversion of portraits into short videos and social media-ready content.

Technology-Driven Visual Generation Experience

Klon AI uses state-of-the-art generative diffusion models and multimodal semantic understanding technologies to ensure visual quality while maintaining consistent control over facial features and stylistic expression. With proprietary identity consistency technology and a visual aesthetics optimization model, Klon AI preserves user identity across different scenes while automatically refining composition, lighting, and color to deliver professional-grade results.

Global users can now request access to Klon AI’s invite-only beta to experience its AI portrait and digital identity capabilities. Initial demand for access to the beta has been strong, reflecting significant global interest in the product’s advanced functionality.

Following the beta phase, the Company plans to further enhance Klon AI’s model capabilities and roll out new features centered around AI digital identity and generative media, driving the evolution of personal content creation from tool-based to intelligent and systematic.

About Cheer Holding, Inc.

Cheer Holding is a leading provider of next-generation mobile internet infrastructure and platform services. The Company operates a comprehensive digital ecosystem that integrates platforms, applications, technology, and industry, with a focus on AI-driven content creation, e-commerce, and metaverse development. For more information, please visit ir.gsmg.co.

Safe Harbor Statement

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. These forward-looking statements include, but are not limited to, statements regarding the success of our artificial intelligence initiatives, changes or other circumstances that could affect the Company’s ability to successfully develop and launch its global expansion plans, artificial intelligence initiatives, and technology infrastructure; issues relating to development and use of artificial intelligence; the possibility that the Company may not succeed in developing its new lines of business due to, among other things, changes in the business environment and technological developments, competition, changes in regulation, or other economic and policy factors; and the possibility that the Company’s new lines of business may be adversely affected by other economic, business, and/or competitive factors, or that the Company will be able to continue to have its Class A ordinary shares listed on The Nasdaq Capital Market. In addition, the Company is subject to a number of 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 20, 2026. 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:

James Li
Email: ir@gsmg.co
Tel: +86 10 6778 2900 (CN)

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