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Kanghui unit signs 1.72 bln yuan computing service deal, needs to buy 1.14 bln yuan servers first
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Kanghui Shares (603139.SH) announced on September 16 that its wholly-owned subsidiary, Beijing Kanghui Zhichuang, signed a five-year computing power service contract with Client A valued at approximately 1.72 billion yuan (tax-inclusive). To fulfill this contract, the subsidiary also signed a purchase and sales contract with Supplier G, a controlled subsidiary of an A+H share listed company, for computing servers worth approximately 1.141 billion yuan (tax-inclusive). The subsidiary must pay the full amount for each server batch within 50 days of delivery, creating significant short-term financial pressure. The company plans to finance the server purchases primarily through financial institutions, which is expected to raise its asset-liability ratio from 69% to around 78%. Computing power delivery will occur in batches from the end of Q3 2026 to the end of Q1 2027. If delivered on schedule, the contract is expected to add approximately 30 million yuan in revenue for fiscal year 2026, though the impact on net profit for that year remains undetermined.
Source report
Beijing, September 16 — Kanghui Shares (603139.SH) announced today that its wholly-owned subsidiary, Beijing Kanghui Zhichuang, has entered into a significant computing power service agreement and a related server procurement contract.
Key Contract Details
Computing Power Service Contract
- Counterparty: Client A
- Total Value: Approximately RMB 1.72 billion (tax-inclusive)
- Term: Five years
Computing Server Purchase and Sale Contract
- Counterparty: Supplier G
- Total Value: Approximately RMB 1.141 billion (tax-inclusive)
- Supplier Background: A controlled subsidiary of an A+H share listed company, with good credit standing and sufficient performance guarantee capabilities
Financial Implications
The company highlighted several financial considerations:
- Payment Terms: Beijing Kanghui Zhichuang must pay the full amount for each batch of computing servers within 50 days after delivery, placing significant short-term financial pressure on the subsidiary.
- Funding Source: The approximately RMB 1.141 billion server purchase is expected to be primarily financed through financial institutions.
- Asset-Liability Ratio Impact: The company's asset-liability ratio is projected to increase from 69% to approximately 78%.
Delivery and Revenue Outlook
- Delivery Schedule: Computing power will be delivered in batches from the end of the third quarter of 2026 to the end of the first quarter of 2027.
- Revenue Contribution: If delivered on schedule, the contract is expected to add approximately RMB 30 million in revenue for fiscal year 2026.
- Net Profit Impact: The impact on net profit for fiscal year 2026 remains undetermined at present.
Source
财联社Eastern
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