NetDragon, Cherrypicks, and Zhongke WengAI: A Tripartite Alliance Powering Hong Kong's AI-Driven Global Expansion

In the rapidly evolving landscape of artificial intelligence, strategic alliances are becoming the bedrock of global expansion. The tripartite collaboration between NetDragon, its subsidiary Cherrypicks, and Zhongke WengAI (Wenge Technology) represents a pivotal moment in China's AI "Go-Global" initiative. This partnership, announced in August 2025, is not merely a corporate maneuver but a calculated move to position Hong Kong as a launchpad for cutting-edge AI technologies, leveraging the city's unique geopolitical and economic advantages. For investors, the implications are profound: a convergence of mainland AI innovation, Hong Kong's internationalized infrastructure, and a growing demand for AI-driven solutions across global markets.

Strategic Synergy: Bridging Mainland Innovation and Global Markets

The alliance's core strength lies in its complementary capabilities. Zhongke WengAI, a research-driven entity incubated by the Chinese Academy of Sciences, brings to the table its proprietary YaYi large language model—a domain-adaptive AI system that ranked first in global agent benchmarks in 2025. This model, alongside tools like Wisky (social listening) and Yoya (multimodal content creation), forms the technological backbone of the partnership. Cherrypicks, meanwhile, offers a proven track record in cross-border AI deployment, mobile technologies, and enterprise services. By designating Cherrypicks as its exclusive overseas commercialization platform, Zhongke WengAI gains access to a global distribution network, while Cherrypicks and NetDragon gain access to cutting-edge AI assets.

NetDragon's broader AI+ strategy—focusing on AI-driven education, gaming, and smart cities—aligns seamlessly with this collaboration. The company's vision of an educational metaverse and AI-enhanced productivity tools is now bolstered by YaYi's advanced reasoning and decision-making capabilities. This synergy is not just theoretical: the alliance has already begun deploying AI solutions in sectors like finance, healthcare, and public administration, with plans to expand into Southeast Asia, Europe, and the Middle East.

Hong Kong's Strategic Role: A Bridge to the World

Hong Kong's role in this alliance is both symbolic and practical. As a Special Administrative Region, it serves as a regulatory and cultural bridge between mainland China and international markets. The city's 2025-26 Budget allocated HK$1 billion to establish the Hong Kong Artificial Intelligence Research and Development Institute, a move that underscores its ambition to become a global innovation hub. This government-backed infrastructure, combined with Hong Kong's multilingual workforce and internationalized business environment, creates a fertile ground for AI commercialization.

The tripartite alliance capitalizes on these advantages. By anchoring its global operations in Hong Kong, the partnership can navigate regulatory complexities, access international capital, and tailor AI solutions to diverse markets. For instance, YaYi's deployment in smart city projects and enterprise services is expected to align with Hong Kong's push for digital transformation, while Cherrypicks' cross-border expertise ensures seamless integration into global supply chains.

Investment Implications: High-Growth Opportunities in the Greater Bay Area

For investors, the alliance represents a rare convergence of technological leadership, strategic positioning, and government support. The Greater Bay Area (GBA) is already a magnet for tech equity investments, and this partnership amplifies its appeal.

1. NetDragon (Stock Symbol: 777.HK): The parent company's stock has shown resilience amid macroeconomic volatility, with a 12-month price increase of 22% as of August 2025. The AI "Go-Global" initiative could further catalyze growth, particularly if the company's educational metaverse and AI gaming segments gain traction in international markets.
   

2. Zhongke WengAI's AI Assets: While not publicly traded, the company's valuation is indirectly tied to the success of its YaYi model and its integration into global markets. Investors may consider indirect exposure through AI-focused ETFs or venture capital funds targeting mainland Chinese tech firms.

3. Cherrypicks' Cross-Border Play: As the exclusive overseas platform for Zhongke WengAI, Cherrypicks is positioned to benefit from recurring revenue streams in AI-as-a-Service (AIaaS). Its ability to localize AI solutions for international clients—such as multilingual healthcare diagnostics or financial compliance tools—could drive margins and market share.

4. Hong Kong's AI Ecosystem: The city's HK$1 billion AI R&D Institute is a catalyst for long-term growth. Investors might explore infrastructure providers, data centers, or AI talent development firms that support the ecosystem.

Risks and Considerations

While the alliance is promising, investors must remain cautious. Regulatory scrutiny of AI exports, geopolitical tensions, and the rapid pace of technological obsolescence pose risks. Additionally, the success of YaYi and other AI models hinges on their ability to adapt to local regulations and user preferences.

Conclusion: A Strategic Bet on AI's Future

The tripartite alliance between NetDragon, Cherrypicks, and Zhongke WengAI is more than a corporate partnership—it is a blueprint for China's AI "Go-Global" strategy. By combining mainland innovation with Hong Kong's global connectivity, the collaboration addresses a critical gap in the AI value chain: the need for scalable, localized solutions. For investors, this represents a high-conviction opportunity in the GBA's tech equity market. Those who position themselves early—whether through NetDragon's stock, AI-focused funds, or Hong Kong's innovation infrastructure—stand to benefit from the next wave of AI-driven globalization.

In an era where AI is the new electricity, the Greater Bay Area is lighting the way. The question for investors is not whether to participate, but how to position for the inevitable.