On November 20, Shenzhen Yushun Electronics Co., Ltd. (*ST Yushun) announced that its board and supervisory board had approved the acquisition of a 6% stake in Hebei Huai Data Technology Co., Ltd. (Aihua Data) on November 17. The company completed the payment of the 3 million yuan transfer fee within two business days. The transaction involves shares held by the controlling shareholder, Shanghai Fengwang Industrial Co., Ltd., making it a related-party transaction.
This small-scale equity acquisition further expands the company’s intelligent computing center presence in the Beijing-Tianjin-Hebei region. The move comes as *ST Yushun nears the completion of its major asset restructuring—a 3.35 billion yuan cash acquisition of the Beijing Fangshan Zhongen Cloud Data Center Project (Zhongen Cloud Project).
Key milestones in the restructuring include: planning initiated in April 2025, a draft asset purchase report disclosed in July, a revised draft approved by the board in September, and the transaction plan passed at an extraordinary shareholders’ meeting in October. The controlling shareholder, Shanghai Fengwang, has provided a 1.7 billion yuan credit line and pledged additional financial support if necessary.
Pending regulatory approvals, Zhongen Cloud Technology, Beijing Shenhui Biyuan Cloud, and Zhongen Cloud Information will become subsidiaries of the listed company post-transaction. The Fangshan-based project currently operates around 8,000 server racks, primarily offering data center infrastructure services. It reported a net profit of approximately 173 million yuan in 2024 and maintained stable profitability in the first half of 2025.
Background: Originally focused on LCD and touch display module manufacturing, *ST Yushun has faced growth challenges in its traditional business. After a change in control in September 2023, new majority shareholder Zhang Jianyun and management shifted focus to data centers, first advancing the Zhongen Cloud Project and now swiftly securing a minority stake in Aihua Data.
Despite a 220 million yuan revenue in 2024 and ongoing losses, the company has seen improved gross margins and cash flow. The pivot aims to diversify risks and enhance asset quality. If the restructuring succeeds, *ST Yushun’s asset scale will expand significantly, transitioning to a diversified business model centered on data center infrastructure.
This move into Beijing and the broader region’s computing assets exemplifies traditional manufacturers’ shift toward digital infrastructure. It also reflects regulators’ increasing openness to quality asset injections into ST-listed companies, potentially improving their fundamentals.
However, risks remain, including the transaction’s large scale, reliance on shareholder financing, and customer concentration at the target. Market participants will closely monitor post-deal integration and operational stability.
Overall, such restructurings introduce more market-driven players into the computing power sector, fostering supply-demand synergy. Yet, long-term success hinges on genuine profitability and operational efficiency.
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