Financial Services Association, August 28. While Aoya Co., Ltd. released its semi-annual report today, it also announced that its wholly-owned subsidiary will “cut the foot” in purchasing computing power servers.

In the evening, Aoya Co., Ltd. announced that Ultron Engine, a wholly-owned subsidiary of the company, negotiated and signed a “Supplementary Agreement on the Purchase Contract for Computing Power Servers” with supplier Runxin Supply Chain. According to the agreement, the number of 128 high-performance computing servers with embedded Nvidia GPU chips originally planned to be purchased was changed to 8. This change has been carefully studied by the company and will not have a significant adverse impact on the company's financial and operating conditions.

In fact, the 8 high-performance computing servers mentioned after the contract was changed have already been delivered. Aoya Co., Ltd. mentioned in this announcement that as of today, Runxin Supply Chain has delivered 8 computing power servers to Ultron Engine, all of which have passed the inspection.

Regarding this change in the procurement contract, Aoya Co., Ltd. explained in the announcement that with the continuous advancement of technology such as chip technology and cloud computing, the supply capacity of AI computing power is also constantly improving. <算力服务器采购合同>Since the first computing power server was delivered, the company's self-developed product, UrbanFlow, was officially launched on June 5, 2024. The company's reserved computing power resources can better support current and future development and application demand for computing power. If there is further need in the future, the company will not rule out considering choosing competitive domestic suppliers and domestic products to meet computing power needs. Based on the above, after careful decisions, the company's board of directors will negotiate and sign the “Supplementary Agreement” with Runxin Supply Chain. The total number of servers was changed from 128 to 8.

Regarding the original planned procurement contract, it was signed in December of last year. On December 17, 2023, Aoya Co., Ltd. held the 17th meeting of the 3rd board of directors to review and pass the “Proposal on the Wholly-owned Subsidiary to Sign a 'Computing Power Server Procurement Contract'”. The company's wholly-owned subsidiary Shenzhen Ultron Engine Data Service Co., Ltd. signed a “Computing Power Server Procurement Contract” with the supplier Shenzhen Runxin Supply Chain Co., Ltd. to purchase 128 high-performance computing servers and supporting software and hardware with embedded Nvidia GPU chips. The contract amount is RMB 435.2 million (due to possible fluctuations in the unit price of the product).

According to the “Computing Power Server Purchase Contract”, the two parties can amicably negotiate contract elements, including price, according to changes in the market situation and based on the principle of equality and mutual benefit, and the two parties shall determine the quantity and unit price through written negotiations before each product is delivered.

It is worth mentioning that after the purchase news was released, the stock price of Aoya shares rose and fell 20CM for 3 consecutive trading days, which also attracted the attention of the exchange. Immediately, Aoya Co., Ltd. received a letter of concern from the Shenzhen Stock Exchange and was asked if it had all the qualifications or approval required to sell high-performance computing servers with Nvidia GPU chips.

Subsequently, Aoya Co., Ltd. responded to the Shenzhen Stock Exchange's letter of concern, saying that the company's intelligent computing business is still in the early stages and has not contributed to operating revenue, and that the subsidiary's signing of the “Computing Power Server Purchase Contract” had no significant impact on the company's current business performance. Currently, the company does not yet have the technical patent accumulation required to carry out intelligent computing business and the operating qualifications required to carry out intelligent computing business. In the early stages of the project, business development requires support from other IDC infrastructure operation and maintenance partners, such as network security.

In addition, Aoya Co., Ltd. also disclosed its 2024 semi-annual report today. In the first half of the year, the company achieved operating income of 0.274 billion yuan, a year-on-year decrease of 7.1%; net profit attributable to shareholders of listed companies was a loss of 71.4087 million yuan, a year-on-year decrease of 1148.17%. Despite the decline in net profit, the company's net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 1.2993 million yuan, turning a year-on-year loss into a profit.

Judging from the market situation, the stock price of Aoya shares quickly declined after a brief sharp rise last year. Since then, the stock price performance has remained tepid. Since this year, the stock price has fluctuated around 30 yuan for a long time. As of today, the stock price of Aoya shares closed at 29.18 yuan/share, with a total market value of 1.8 billion yuan. The stock price is close to falling behind this year.