YICAI | China's Hec Tech Pens Second Big AI Computing Services Deal in a Month
(Yicai) June 2 -- Hec Technology Holding, a Chinese electronic and new materials supplier, said its artificial intelligence computing power unit has landed a second large deal from a different corporate client within a month, with the new deal worth up to CNY12 billion (USD1.8 billion).
Hec Cloud Computing Technology, set up in April, will procure, test, and deploy high-performance computing servers based on the client's technical specifications, the Guangdong province-based parent firm announced late yesterday. The deal will likely be worth between CNY10 billion and CNY12 billion.
After the client accepts the project, Hec Cloud will provide full-cycle operation and maintenance services via computing power leasing over the next five years, charging a monthly service fee, Hec Tech noted.
The new AI computing services deal is a key milestone for Hec Tech's scaled and regularized computing business rollout, locking in steady long-term operating income for the segment and serving as a landmark achievement for the firm's intelligent computing expansion, the company noted, adding that it is also poised to drive its continuous penetration into the Chinese AI computing market.
On May 5, Hec Tech announced Heck Cloud had penned a five-year AI computing services deal with a corporate client worth between CNY16 billion and CNY19 billion, marking the maiden big commercial order for its new computing division.
Hec Tech, in collaboration with its parent firm Dongyangguang and external investors, spent CNY28 billion in cash to fully acquire Chindata China from Bain Capital last September, marking its entry into the computing power sector. Following the acquisition, Hec Tech held a 30 percent stake in the firm, while Dongyangguang owned 35 percent.
On Feb. 24, Hec Tech announced that it is planning a major asset restructuring, intending to increase its stake in Chindata to 100 percent through the issuance of new shares.
Chindata, which was spun off from the Chinese operations of Chindata Group, is a leading third-party hyperscale computing infrastructure AIDC/IDC operator. It has big data centers across key regions such as the Capital Economic Circle, Yangtze River Delta, Greater Bay Area, and major hubs for the Eastern Data Western Computing initiative, while also being a core computing power service provider for leading tech firms like TikTok-owner ByteDance.
Shares of Hec Tech [SHA: 600673] rose 1 percent to CNY36.09 (USD5.45) each as of 10.55 a.m. in Shanghai today, after earlier jumping by as much as 5.7 percent.