(Yicai) May 11 -- Shares of Hanbang Technology surged by their daily trading limit after the Chinese artificial intelligence computing power services provider said it has signed a CNY2.8 billion (USD411.7 million) tax-included graphics processing unit server procurement and maintenance deal with domestic peer Qimingxinghan Technology.

Hangbang Tech [SHE: 300449] closed up 20 percent at CNY9.56 (USD1.41) a share today. The broader Shenzhen market climbed 2.2 percent.

Hangbang Tech has entered into a high-performance GPU equipment procurement, system integration, and maintenance service agreement with Qimingxinghan Tech, it announced late yesterday, adding that it will supply the gear, including GPU servers and software for the client's computing power service project, in batches alongside providing installation, commissioning, maintenance, and after-sales services.

Hangbang Tech will complete the equipment installation, system integration, and pass performance acceptance within 80 days upon receiving each order, it said. The deal is equivalent to 1,515 percent of the Beijing-based company's audited operating revenue last year, with its smooth performance to boost the firm's core competitiveness, it added.

In addition, Chinese fintech service provider Tansun Technology said late on May 8 that as Qimingxinghan Tech has signed a 60-month service order with a computing power end user, it will provide full funding for the GPU equipment procurement in exchange for a 75 percent stake.

The smooth advancement of the project will generate sustained and stable computing power leasing revenue for Tansun Tech throughout Qimingxinghan Tech's five-year AI service contract term, the former firm said, adding that it will also exert positive and far-reaching influences on its operating performance this year and subsequent years, likely cultivating a new core growth driver.

Tansun Tech did not disclose the name of the end client for Qimingxinghan Tech's AI computing power services, nor the specific amount of its equity investment. However, it estimated that the project's equipment procurement cost would range from CNY3.5 billion to CNY4 billion (USD483 million to USD552 million), exceeding the deal between Qimingxinghan Tech and Hangbang Tech.

Tansun Tech's stock [SHE: 300872] ended 2.1 percent higher at CNY20.73 (USD2.86), after earlier surging by as much as 11.1 percent.

AI computing power services are a highly sought-after investment in the Chinese stock market. For example, Hec Technology Holding [SHA: 600673] surged by the limit for two straight days at the end of last week in Shanghai after signing an AI computing power services contract worth up to CNY19 billion (USD2.6 billion).

Editor: Martin Kadiev