RUIHE DATA (03680) announced that to diversify the group's revenue sources, the company plans to engage in cryptocurrency business through services provided by Bitmain (www.bitmain.com) as the service provider, specifically in the form of cloud mining services. To the directors' knowledge, both the service provider and its ultimate beneficial owners are independent third parties of the company.
By paying service fees to the service provider, the group will receive mining rewards distributed by the service provider according to agreed periods. According to the group's accounting policies, cryptocurrency business revenue will be recognized when: the group's right to receive cryptocurrency has been established, economic benefits associated with the cryptocurrency are likely to flow to the group, and the amount of cryptocurrency can be reliably measured. Therefore, the group's management believes that through this business diversification initiative, the group will obtain additional revenue sources in the future.
The board of directors believes that Bitcoin mining, as an independent business segment, can provide the group with opportunities in digital assets and emerging technology fields that differ from traditional operational and investment models. Against the backdrop of increasing macroeconomic uncertainty, such business has greater strategic value. Additionally, this business not only has high return potential but can also drive the group's layout in blockchain and digital asset innovation fields, establishing the company's forward-looking positioning, which aligns with relevant policy directions of the Hong Kong Special Administrative Region government.
The service provider is a leading global digital currency mining machine manufacturer, maintaining a leading position in global market share and technology for an extended period. Its business spans over 100 countries and regions, with branch offices in Hong Kong, the United States, Malaysia, the United Arab Emirates, Lithuania, and Paraguay.
By outsourcing Bitcoin mining business to the service provider, the group can transfer some risks and responsibilities, avoiding substantial upfront capital investment in mining machine hardware, infrastructure, and maintenance costs, thereby converting capital expenditure into more manageable operating expenses. This arrangement reduces operational complexity and risk exposure from hardware failures, energy management, and technical challenges. More importantly, the group can flexibly adjust mining scale according to demand without being constrained by fixed assets.
According to the terms of the service agreement, the group also enjoys the right to purchase mining machines to directly control mining operations and hardware when necessary. As Hong Kong's digital economy and virtual asset industry develop rapidly, the group's initiative to expand cryptocurrency business is highly aligned with this trend and future fintech development directions.
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