Summary of Key Points
The demand for AI computing power has exploded, prompting a number of listed companies that were previously unrelated to this field (such as Dongguangyang, which manufactures electronic components, and Shengshi Technology, which specializes in smart port systems) to enter the computing power industry. These companies have secured large contracts worth billions to over a hundred billion yuan. However, behind these "newcomers" lies a high-risk gamble: on one hand, they must invest heavily in purchasing equipment and building computing power centers, facing significant financial pressure; on the other hand, the contract terms are more favorable to the clients, with strict acceptance criteria and limited bargaining power, and they lack experience in managing large-scale computing power operations. The seemingly attractive billion-yuan contracts actually mark the beginning of a challenging journey.
I. Newcomers Breaking into the Field: Sudden Emergence of Large Computing Power Contracts
In the past month, companies with little prior connection to computing power have suddenly become dark horses in this industry:
- Dongguangyang: Primarily engaged in electronic components and new materials, it established a subsidiary called "Dongguangyang Cloud Intelligence Computing" in April this year and subsequently signed two computing power service contracts totaling 26 billion to 31 billion yuan (16 billion to 19 billion yuan plus 10 billion to 12 billion yuan). To support this new company, Dongguangyang plans to provide a guarantee of 60 billion yuan, which is more than six times its net assets.
- Shengshi Technology: Previously focused on smart port systems (such as intelligent inspection equipment for airports and ports), it signed a 6-billion-yuan computing power cooperation agreement in May this year and announced the purchase of IT equipment worth 7.1 billion yuan (1.1 billion yuan initially, with an additional 6 billion yuan to follow). However, its revenue for 2025 is only 1.445 billion yuan, and its cash on hand is merely 1.31 billion yuan—barely enough to cover the purchase cost.
These companies are newcomers to the computing power sector but have secured contracts far exceeding their scale, like guests suddenly attending a grand banquet.
II. The Motivation for Such Bold Stakes: A Gap in Computing Power Supply + Anxiety About Traditional Business
Why do these companies take such risks? There are two main reasons:
1. The demand for computing power is incredibly high: The development of large AI models and intelligent systems requires massive amounts of computing power, to the point where even giants like Alibaba are reporting a shortage of available servers, with potential capital expenditures exceeding 380 billion yuan over the next three years. The gap in computing power supply between cloud service providers and AI companies has opened doors for traditional businesses—anyone that can provide computing power can attract clients.
2. Weak growth in traditional businesses, making computing power a lifeline: The growth of Dongguangyang and Shengshi Technology's core businesses is not impressive, so computing power represents their only hope for a second growth trajectory and potential valuation appreciation on the stock market. Not taking this risk could mean missing out on significant opportunities.
III. Hidden Concerns Beneath the Glitzy Contracts
The billion-yuan contracts may seem attractive, but upon closer inspection of the terms and companies' situations, numerous risks emerge:
- Tight financial constraints: Shengshi Technology needs 7.1 billion yuan to purchase equipment with only 1.3 billion yuan in cash. It must either borrow or raise funds; a failure to meet these funding requirements could lead to default. Dongguangyang's guarantee of 60 billion yuan binds the parent company, which could be financially responsible for any issues arising from the subsidiary.
- Strong client leverage: The contracts stipulate that computing power services must go through delivery, inspection, and acceptance before billing; if they do not meet standards after adjustments, the client can terminate the contract without penalty. This gives the client significant control, leaving the newcomers with no choice but to accept these terms passively.
- Lack of experience: Both companies admit having limited experience in managing large-scale projects. Operating a computing power center involves more than just purchasing equipment; it also requires expertise in operation, maintenance, and optimization, which new players are likely to struggle with.
- Vague performance commitments: The contracts state that they do not constitute performance guarantees, meaning even securing billion-yuan contracts does not guarantee profits; in fact, they could result in losses. For example, large upfront investments for equipment purchases may not be offset by revenue until after the services are accepted, putting significant pressure on cash flow.
IV. The Industry's Evolution: From Contract Signing to Successful Operation
The computing power industry is undergoing a transformation. In the past, getting the contract was sufficient, but now clients place more emphasis on the ability to deliver and operate computing power efficiently.
Newcomers may have an advantage in their willingness to invest heavily, but their shortcomings are evident: they lack technical expertise (such as in computing power scheduling and energy optimization) and operational experience (such as handling equipment failures and adapting to changing client needs). In the future, only those who can turn theoretical contracts into practical, usable services will survive; otherwise, billion-yuan contracts could become a burden that cripples their businesses.
Conclusion
The AI computing power boom indeed presents opportunities, but the bold bets made by these newcomers are akin to risky ventures. For outsiders, when seeing these companies secure large contracts, it's important to consider the underlying financial pressures, contract terms, and operational capabilities. After all, in the computing power industry, securing a contract is just the beginning; delivering quality services is the real test of success.