Digital China Group Advances in Domestic AI Computing with Major Project Bid

Deep News07-02 21:19

Digital China Group Co.,Ltd. (SHE: 000034) has announced its selection as the primary bid candidate for a significant domestic AI computing project valued at 717 million yuan.

The company's wholly-owned subsidiary in Shanghai has been shortlisted as the preferred bidder for the domestic AI computing Token Factory project. The bid price is set at 717 million yuan, with the supply involving the company's Shenzhou Kuntai super-node servers and related supporting products.

This preliminary bid success marks a significant business breakthrough for the company in the field of domestic AI computing. It positions the firm to capitalize on the growth of AI inference computing and the industry trend towards self-sufficient, controllable computing services. This achievement is expected to deepen the company's strategic positioning in the domestic AI computing sector and enhance its market competitiveness and industry standing in AI computing products and services.

In recent years, the company has been accelerating its entry into the commercial implementation phase of domestic computing power. Its latest annual report indicates that revenue from its self-owned brand business reached 7.44 billion yuan, representing a substantial year-on-year increase of 62.4%. This growth is primarily driven by its Shenzhou Kuntai domestic AI computing hardware portfolio.

Leveraging technological breakthroughs and strategic acquisitions, the company has established a comprehensive "computing-network integration" layout. The current super-node server project bid is a concentrated demonstration of its advantages across the industry chain.

From an industry perspective, the market for AI servers in China is experiencing rapid expansion, with surging demand for tokens and inference computing power. This is driving the construction of domestic, self-sufficient computing infrastructure. The company advocates an "AI for Process" philosophy, emphasizing the deep integration of AI into enterprise workflows.

Data shows that the company's overall AI-related business revenue reached 33.03 billion yuan, growing 47.7% year-on-year. Computing hardware serves as the foundational base, acting as the core carrier for the scaling of AI business operations.

Should this bid be successfully finalized, it is not only expected to directly boost the company's financial performance but also signifies that the Shenzhou Kuntai brand has the capability to independently handle large-scale AI computing projects. From a capital markets standpoint, the company's self-owned brand business has demonstrated strong profitability.

Following other recent contract wins, this 717 million yuan AI computing project bid provides further validation for the company's high-growth trajectory in computing hardware. This series of successes may support the unlocking of medium to long-term valuation upside potential for the company.

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