① Hongxin Electronics signed a strategic cooperation agreement with Shenzhen X State Enterprise. Who is the partner “X State Enterprise” sparked a heated discussion among investors. ② In the announcement previously issued by the company, the partner also replaced “X state-owned enterprise”.
Financial Services Association, July 3 (Reporter Lu Tingting) Tonight, Hongxin Electronics (300657.SZ) revealed the announcement of the signing of a strategic cooperation agreement. The cooperation covered various fields such as high-performance AI server manufacturing, computing power leasing and investment, but did not specify specific partner companies. They were only replaced by “Shenzhen X State-owned Enterprise”. This sparked a buzz among investors, and some shareholders called it “hot.”
Jiang Han, a senior researcher at the Pangu think tank, told the Financial Federation reporter that using “Shenzhen X state-owned enterprise” as a partner may be due to commercial secrecy or partner requirements, rather than deliberately blurring the partner's identity to gain popularity. However, this kind of expression may indeed trigger curiosity and speculation from the public and shareholders, thereby increasing topicality and heated discussion.
According to the announcement, Hongxin Electronics and Shenzhen X state-owned enterprises jointly signed a “strategic cooperation agreement” on July 3. The cooperation includes: Relying on the company's significant advantages in the manufacturing field and its high-performance AI server manufacturing plants already established in Sichuan and Gansu, the two sides have carried out comprehensive technical cooperation to jointly build high-performance AI server manufacturing plants. The two sides will work together to develop, or custom-develop high-performance AI servers according to the specific needs of X state-owned enterprises.
Hongxin Electronics said that the Guangdong-Hong Kong-Macao Greater Bay Area is very active in developing AI applications. It is in a leading position in the country, and demand for computing power is growing rapidly. The signing of this agreement is a breakthrough in the company's AI computing power business in the Guangdong-Hong Kong-Macao Greater Bay Area market; it has had a positive impact on the rapid implementation of the company's computing power business and the development and brand building of the company's computing power in the Guangdong-Hong Kong-Macao Greater Bay Area market.
The announcement mentioned that within 3 years after signing this agreement, both parties A and B will work together to reach 1 billion yuan in computing power business cooperation and aim to achieve a cooperation scale of 0.5 billion yuan by June 30, 2025. A framework agreement for strategic cooperation between the two parties. The matters agreed upon are guiding documents for future business cooperation. Specific details such as the actual amount of cooperation, service content, and service period must be handled by both parties in accordance with the law and relevant regulations, and determined by signing a separate relevant agreement.
Some investors speculated that Shenzhen X state-owned enterprises may be one of the four “CGN Testing Technology Co., Ltd., Shenzhen Feisi Communication Technology Co., Ltd., Shenzhen Information Infrastructure Investment and Development Co., Ltd., and Shenzhen Guoxin Ruida Guarantee Investment Co., Ltd.” based on information from counterparties shown in the announcement. A reporter from the Financial Services Association has sent an email to Hongxin Electronics to seek evidence about this, but no response has been received as of press release.
Screenshot from Hongxin Electronic Notice
A Financial Services Association reporter noticed that previously, Hongxin Electronics issued a “subsidiary signs a computing power service project contract” announcement on June 13, and the partner is also “Shenzhen X state-owned enterprise.” According to the announcement, the subsidiary Suihong Green will provide computing power services to X state-owned enterprises. The contract amount is estimated at 0.135 billion yuan, and the contract period is 6 years.
Originally specializing in flexible circuit boards, Hongxin Electronics entered the AI computing power industry last year. According to financial data, Hongxin Electronics continued to lose net profit from 2021 to 2023; in the first quarter of this year, the company achieved operating income of 1.67 billion yuan, an increase of 161.08%; net profit to mother was 0.028 billion yuan, an increase of 137.72% over -0.075 billion yuan in the same period last year. Although the new AI business has contributed to performance, it remains to be seen how it supports the company's business performance.