Qunabox Group Opens '99 Quna Festival,' Debuting Consumer-Facing Physical AI Entertainment

The festival marks the first public showcase of the group's physical AI entertainment business and the extension of its proprietary Q-Gen and Q-Sense engines from brand marketing scenarios to paid consumer experiences.

SHANGHAI, Sept. 9, 2026 /PRNewswire/ -- Hong Kong-listed Qunabox Group Limited (0917.HK) opened its "99 Quna Festival" here on Sept. 9, putting its consumer-facing physical AI entertainment business in the spotlight for the first time.

Unlike earlier editions, which centered on the group's AI marketing services for brands, this year's festival showcased a range of products incubated by the group: naked-eye 3D interactive installations, devices that generate digital humans in real time and motion-sensing game equipment that requires no wearable gear. Qunabox said the lineup marks the expansion of its proprietary Q-Gen Generative Spatial Narrative Engine and Q-Sense Omni-sensory Multimodal Interaction Engine from B2B marketing scenarios that serve brand clients into paid, consumer-facing experience scenarios.

The products on display are built on what Qunabox calls its self-developed "1+1+2" physical AI technology matrix. Their core capabilities were not developed from scratch, the company said, but assembled through a scenario-based reconfiguration of technologies accumulated over years of serving B2B brand customers.

Q-Gen enables real-time digital human generation and AI content creation. A consumer can take a single photo and get a personalized 3D digital avatar quickly, then generate personalized short videos and virtual runway looks with one tap — output is dozens of times faster than traditional approaches. Q-Sense integrates naked-eye 3D display, wearable-free motion capture and multi-sensory interaction technologies, allowing consumers to interact with naked-eye 3D imagery in real time through body movements alone, with nothing worn on their bodies. The group described the approach as an attempt to remove the hardware constraints of traditional offline entertainment.

The technology base has already been validated at commercial scale in B2B marketing, which remains the group's core business. Running thousands of AI interactive terminals across 20+ Chinese cities, Qunabox combines computer vision, motion capture, voice interaction and smart fragrance release so that its terminals engage sight, hearing, smell and touch at once — moving beyond traditional offline advertising, which reaches consumers through visual exposure alone.

The momentum is showing up in the group's accounts. In the first half of 2026, revenue from AI interactive marketing services jumped 101.9 percent year over year to 131.6 million yuan (about $18 million), with a gross margin of 93.3 percent. The group serves 332 brand customers across fast-moving consumer goods, cosmetics and new-energy vehicles. As growth in online traffic cools and demand for richer offline experiences rises, multi-sensory interactive marketing is emerging as a new option for brand spending on offline placements, and Qunabox is one of the segment's representative players.

The move of B2B technology into consumer entertainment carries low marginal research and development costs, it means content can be produced in batches, hardware can be replicated in modules, and a proven single-venue model can then be scaled up quickly. Its first-generation products, Qunabox said, have already taken "Game Reality" from an industry vision into reality — consumers can interact in real time with virtual imagery in physical space, wearing no equipment at all, for an immersive gaming experience.

Game Reality, in turn, opens wider room for industrial cooperation. Its underlying capabilities — wearable-free motion capture, real-time digital human generation and naked-eye 3D interaction — are natural interfaces for content industries. With intellectual property partners in animation, film, television, or designer toys, the technology can convert characters into offline immersive experiences: rather than watching an IP figure passively, consumers can interact with it in real time and complete story missions together. In gaming, the group could co-develop physical, location-based projects with game developers, transplanting online gameplay and worldviews into offline venues in a closed loop of "online traffic, offline monetization," while giving game publishers a new channel to reach players. In culture and entertainment, music festivals, concerts and themed exhibitions could plug into the same physical AI interaction capabilities, offering audiences a participatory, differentiated experience rather than a one-way viewing session.

The potential is broad, but whether IP partnerships and gaming tie-ups turn into sustainable revenue will still depend on the group's ability to build a content ecosystem and the pace of cross-industry cooperation.

On the ground, Qunabox said in its latest results announcement that it has obtained a business license in Singapore, where the physical AI entertainment space project is advancing, and that Dubai, Australia and other high-value overseas markets are also included in its strategic deployment.

The debut, the company said, validates the cross-scenario reusability of its technology base and opens a long-term growth story. Huayuan Securities assigned a "Buy" rating when it initiated coverage of the group, arguing that its physical AI technology carries a differentiated competitive advantage, its B2B base business is solid and its consumer-facing second growth curve has ample room to expand.

SOURCE Qunabox Group Limited