Key Takeaways:
Chinasoft International's wholly owned unit signed sales agreements worth about RMB1 billion ($138 million) to supply high-end AI computing equipment to multiple independent third-party customers, the company said Tuesday.
"These deals represent a significant commercialization breakthrough for our AI infrastructure operations," management said in a Hong Kong stock exchange filing, adding that the contracts broaden the customer base and add substantial revenue from AI computing hardware.
The equipment will be used in artificial intelligence research and development, high-performance computing and AI computing power infrastructure construction. The contracts mark the shift of this business line from strategic planning to large-scale market rollout. Chinasoft shares surged 14.8% to close at HK$3.87, giving the company a market capitalization of about HK$10.95 billion.
The company expects the contracts to create synergies with its existing AI products, cloud capabilities and vertical solutions, underpinning future offerings in computing power leasing, token-based commercial models and industry-wide AI solutions. Chinasoft plans to continue scaling market-oriented procurement, sales and services for high-end AI computing equipment while strengthening its upstream supply chain and diversifying customer industries.
Beijing Chinasoft International Information Technology, the subsidiary executing the agreements, will supply the equipment and supporting resources for AI infrastructure deployment. The company said it aims to build a sustainable commercial cycle around computing power procurement, delivery, sales and operations to support its long-term AI strategy and shareholder interests.
The contracts come as Chinese technology companies accelerate spending on AI infrastructure to compete in the rapidly expanding market for generative AI services. The push mirrors similar buildouts by global cloud providers, with Nvidia's graphics processing units remaining the dominant choice for AI training and inference workloads. Chinasoft's move into AI computing hardware positions it to capture a slice of the infrastructure spending that has driven revenue growth at companies such as Inspur and Huawei's cloud division.
The most recent analyst rating on Chinasoft stock is a Sell with a HK$3.10 price target, according to TipRanks data. The stock has gained about 15% year to date, though it remains well below the HK$6.50 level it traded at in early 2025.
This article is for informational purposes only and does not constitute investment advice.
