Event: recently, the company issued an announcement on the acquisition of 100% equity and related party transactions by the holding subsidiary of Wuhu Liuzhi Zhishu Technology Co., Ltd. Shanghai run Liuzhi, the company's holding subsidiary, intends to acquire 100% equity held by Shanghai Liuzhi Zhishu Technology Co., Ltd.

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Shanghai run six feet, a holding subsidiary, plans to acquire a six-foot 100% stake in Wuhu to promote the construction of the first large-scale intelligence center project in Wuhu cluster. Shanghai run six feet, a subsidiary of the company, plans to acquire the six feet 100% stake in Wuhu held by Shanghai six feet, with a transaction consideration of 1 yuan. The registered capital of Wuhu six feet is 100 million yuan. Because Wuhu six feet has not been established for a short time, Shanghai six feet has not yet paid the actual capital contribution to Wuhu six feet. After the completion of this transaction, Shanghai run six feet will fulfill its contribution obligations to Wuhu six feet in accordance with Wuhu six feet articles of association. In order to thoroughly implement the strategic planning of the National East and West calculation Project and speed up the construction of Wuhu Cluster Intelligence Center, the hub of the Yangtze River Delta, Wuhu Liuzhi plans to join hands with local operators in Wuhu and Xinhua San Technology Co., Ltd. to build the first large-scale intelligence center in Wuhu Cluster. After the completion of this transaction, Shanghai run six feet will hold a 100% stake in Wuhu and promote the construction of related projects.

Cut into the field of computing and set up a joint venture Shanghai run six feet. Computing power is AI and the core productivity of the digital economy era. Based on the needs of the company's long-term development strategy, the company plans to cut into the new track of digital energy computing integration. The Shanghai six feet core team has rich experience in the construction, operation and market resources of AI Intelligence Center (GPU computing power). The team has been engaged in GPU computing for many years and has in-depth cooperation with upstream GPU suppliers NVIDIA Corp and Xinhua. Based on the resource advantages of Shanghai Liuchu in computing power leasing business, the company and Shanghai Liuzhi jointly funded the establishment of a joint venture company, Shanghai run Liuzhi. On August 2, 2023, Shanghai run Liuzhi Technology Co., Ltd. was officially established, with a capital contribution of 51 million yuan, accounting for 51% of the registered capital of the joint venture company, and 49 million yuan, accounting for 49% of the registered capital of the joint venture company.

Work together to establish a computing center, and plan to build a cluster of GPU computing centers in the Yangtze River Delta. The company plans to establish computing centers in Shanghai, Fuzhou Economic Development District, Wuhu, Anhui, and Jining, Shandong, to provide one-stop service for intelligent computing, and to build a cluster of GPU computing centers in the Yangtze River Delta. The main business of Shanghai run six feet includes the establishment of algorithm model, the construction and operation and maintenance of new intelligent computing center, the external leasing of computing power, and providing services for the vertical model studied by university scientific research team. The Shanghai run six feet equity acquisition plan for Wuhu is also in line with the strategic goal of building a cluster of GPU computing centers in the Yangtze River Delta.

Investment advice: the company has cut into the new track of digital energy computing integration and is expected to benefit from the new increment of computing business. It is estimated that the operating income of the company from 2023 to 2025 is 35.63,48.61,6.063 billion yuan respectively, the net profit returned to the mother is 3.49,5.41,721 million yuan respectively, and the EPS is 0.79,1.23,1.64 yuan per share respectively. Cover for the first time, giving a "buy" rating.

Risk tips: new business progress is not as expected; downstream market demand is lower than expected; the risk of increased competition in the industry.