(Yicai) July 13 -- Shares of Hec Technology Holding rose after the Chinese electronic and new materials supplier said its artificial intelligence computing power unit has landed a services deal worth up to CNY15 billion (USD2.2 billion) from a new corporate client, marking its third contract worth over CNY10 billion signed in the past two months.

Hec Tech [SHA: 600673] closed up 3.0 percent to CNY38.25 (USD5.64) today, after earlier jumping by as much as 7.4 percent. The broader Shanghai stock market closed down 2.1 percent.

Hec Cloud Computing Technology, set up in April, will procure, test, and deploy high-performance computing servers based on the client's technical specifications over five years from when the contract kicks in, the Guangdong province-based parent firm announced late on July 10. The deal will likely be worth between CNY13 billion and CNY15 billion.

After the client accepts the project, Hec Cloud will provide full-cycle maintenance services and charge a monthly service fee for each server that passes the acceptance test, Hec Tech noted. 

The new deal is a high-quality upgrade of Hec Tech's computing business, securing a long-term and stable cash flow with high added value, the company said. It also enhances the profitability of the new segment and is beneficial for expanding its presence in high-value computing services, it stressed.

In addition, the deal helps accumulate major clients and service capabilities, strengthening Hec Tech's scale barriers and brand competitiveness in the intelligent computing area, the firm noted.

On May 5, Hec Tech announced Hec Cloud had penned a five-year AI computing services deal with a corporate client worth between CNY16 billion and CNY19 billion, marking the maiden big commercial order for its new computing division. On June 1, the unit signed another deal of the same length with a different corporate client worth up to CNY12 billion.

Hec Tech, in collaboration with its parent firm Dongyangguang and external investors, spent CNY28 billion in cash to fully acquire Chindata China from Bain Capital last September, marking its entry into the computing power sector. Following the acquisition, Hec Tech took a 30 percent stake in the target firm, while Dongyangguang owned 35 percent.

On June 15, Hec Tech announced its plan to fully acquire Chindata through a private placement of shares, with the transaction valued at CNY8.1 billion (USD1.2 billion).

Chindata, which was spun off from the Chinese operations of Chindata Group, is a leading third-party hyperscale computing infrastructure AIDC/IDC operator. It has big data centers across key regions such as the Capital Economic Circle, Yangtze River Delta, Greater Bay Area, and major hubs for the Eastern Data Western Computing initiative, while also being a core computing power service provider for leading tech firms like TikTok-owner ByteDance.

Editor: Martin Kadiev