①Concord Data recently announced the procurement of servers from multiple suppliers, with a total amount expected not to exceed RMB 40 billion. The total disclosed investment amount for the year has reached RMB 122 billion; ②Details such as the scheduled delivery time of this transaction, the company’s counterparties, and the clients of its computing power business have not been disclosed; ③While the scale of business continues to expand, several financial indicators reflect significant pressure on the company.
Cailian Press report dated October 21 (by reporter Fu Jing): Concord Data (300857.SZ) disclosed its fourth server asset procurement announcement of the year this evening. Up to now, the total disclosed investment in server purchases by the company this year has reached RMB 122 billion, surpassing the company’s total revenue forecast for the entire fiscal year of 2024, as well as its total assets as of the end of last year.
According to the latest announcement by Concord Data, it plans to procure servers from multiple suppliers, with an estimated total amount not exceeding RMB 40 billion, to provide cloud computing services to customers. The company stated that this procurement is driven by operational development needs. Upon completion of this transaction, it will significantly promote the company’s core business and provide necessary support for its sustainable growth, playing a crucial role in market expansion.
The company also noted in the announcement that the transaction amount accounts for more than 50% of the company’s most recent audited net assets and exceeds 50% of its most recent audited total assets.
Reviewing Concord Data’s progress on asset purchase disclosures since the beginning of the year, the company has made four announcements regarding the acquisition of computing power server assets in March, May, August, and October, with respective investment amounts not exceeding RMB 30 billion, RMB 40 billion, RMB 12 billion, and RMB 40 billion.
According to the company’s H1 2025 report, Concord Data generated RMB 1.221 billion in revenue from its intelligent computing power products and services business during the first half of this year. However, its working capital requirements have also increased, with financial expenses surging by 662.08% year-on-year. As of the end of June, the net cash flow from operating activities was -RMB 1.56 billion, representing a year-on-year decline of 451.97%. The company attributed this primarily to the timing difference between increased inventory preparation and longer payment cycles from downstream clients compared to upstream suppliers. Meanwhile, the company has been increasing its financing scale, with short-term borrowings exceeding RMB 2.9 billion as of the end of June.
It is evident that while the scale of business continues to expand, various financial indicators reflect significant pressures on the company.
Notably, in the first two announcements, Concord Data clearly mentioned that the scheduled delivery times were April and July of this year, respectively. However, the subsequent two announcements stated that delivery would be ‘subject to actual delivery dates.’
Consistent with previous disclosures, Concord Data did not reveal information about its counterparties, explaining that ‘disclosing such information, due to commercial confidentiality and strategic development considerations, would result in breach of contract or potentially lead to unfair competition.’
Similarly undisclosed are Concord Data’s computing power business clients. According to the company’s statements at an earnings presentation in May this year, its intelligent computing cloud service business has signed cooperation agreements with domestic internet companies and China Mobile International.
At the same earnings meeting, senior executives of the company revealed that ‘the current inventory is sufficient to meet the company’s order demand, and the company has a substantial amount of orders on hand, actively promoting the delivery of related orders.’ However, reporters from Cailian Press noted that the company had not previously disclosed any information regarding the signing of computing power-related orders.
Recently, Hainan Huatie (603300.SH), an emerging player in the computing power sector, abruptly terminated a RMB 3.7 billion computing power contract. The company is under investigation by the China Securities Regulatory Commission (CSRC) for alleged violations of information disclosure regulations. On the same night, Qunxing Toys (002575.SZ) also announced the termination of its cash acquisition of Hangzhou Tiankuan Technology Co., Ltd., bringing an abrupt end to an eight-month narrative about its computing power business. The market is now paying close attention to the latest developments in listed companies’ computing power operations. Whether Xiechuang Data can support over RMB 10 billion in large-scale investments remains a focus of attention for Cailian Press reporters.