Jiechuang Intelligent, a Shenzhen-listed company best known for smart security and smart city products, has secured a computing-power services contract with a provisional value of 4.915 billion yuan, or roughly $737.5 million, including tax.
The five-year agreement, announced on the evening of November 6, is the largest single computing-power services deal the company has disclosed since it began building its intelligent computing cloud business. The buyer is identified only as "H1 Company," with its identity withheld under a disclosure exemption, according to a report by BigGo Finance.
How the Contract Is Structured
The agreement runs for 60 months, but services will not be delivered all at once. Computing capacity will be rolled out in batches, with the volume and price of each batch set through separate orders agreed by both parties.
Each batch carries its own 60-month service period and is priced under a market-based floating mechanism. Jiechuang Intelligent will bill the client monthly, effectively turning the deal into a recurring revenue stream tied to phased delivery and acceptance.
The company classified the deal as an ordinary-course operating contract, meaning it did not require board or shareholder approval. It is not a related-party transaction or a major asset restructuring.
A Client Kept Out of View
Jiechuang Intelligent declined to name the counterparty, citing trade secrets tied to its computing-power business. It said it had completed an exemption procedure allowing it to withhold details such as the client's name, registered address, legal representative, main business and major shareholders.
To reassure investors, the company said H1 Company is a legally existing enterprise, is not subject to enforcement as a judgment debtor and has no ties to Jiechuang Intelligent's controlling shareholder, actual controller, directors or senior managers. Beijing Grandway Law Offices was hired to verify the client's basic information and its capacity to sign and perform the contract, and issued a legal opinion.
The two companies have not carried out similar transactions in the past three years.
From Security Hardware to AI Cloud Services
The deal reflects a broader repositioning. Jiechuang Intelligent has invested in cloud and intelligent computing research since 2018 and launched a cloud product called Changqing Cloud in 2023, covering cloud, intelligent computing and agent development platforms.
Since 2025 it has expanded aggressively into intelligent computing cloud services. Its 2026 interim report showed IT equipment and spare-parts procurement plans approved during the year totaling no more than 14 billion yuan.
According to the same report, the company operates clusters with about 9,000P of FP16 capacity across South, East and North China, representing equipment assets of more than 2.5 billion yuan, with over 40,000P more under construction.
Early Signs of Payback
The pivot is starting to show up in the numbers. The company's third-quarter 2026 report showed its AI plus cloud computing business generated 461 million yuan in revenue, up about 600 percent year on year.
That segment now accounts for more than 70 percent of total revenue. The company is also experimenting with newer offerings, including a concept it calls Token Factory.
Some industry observers view the contract's structure as a sign that competition in computing power is moving from simply owning equipment toward operating it as a continuous service.
Funding the Buildout and Flagged Risks
Because the project requires heavy upfront equipment spending, Jiechuang Intelligent plans to raise and deploy funds in stages that track batch delivery, drawing mainly on its own capital and bank financing. It reported credit and intended credit lines of more than 18.5 billion yuan from financial institutions.
In June 2026 it also proposed a private placement of up to 1.965 billion yuan, with 1.48 billion yuan earmarked for an intelligent computing cloud service center.
The company cautioned that the contract value is not a performance commitment or earnings forecast. Revenue recognition will depend on actual delivery and client acceptance, and the effect on future results remains uncertain.
What the Deal Signals for the Compute Market
The agreement illustrates how Chinese firms outside the traditional cloud giants are seeking a share of demand for AI computing capacity through long-term, service-based contracts rather than one-off hardware sales.
For investors and industry watchers, the key variables will be the prices set in each batch order, how quickly clusters are installed and accepted, and whether the planned financing arrives on schedule. The long-cycle structure brings steadier revenue potential but also places greater pressure on cash and debt management.
Source: BigGo Finance
