(Yicai) March 5 -- Shares of Huatie Energy Equipment Science and Technology surged by the exchange-imposed daily trading limit after the Chinese construction equipment leasing firm secured a CNY3.7 billion (USD507 million) order for computing power services.

Huatie [SHA: 603300] was trading up 10 percent at CNY10.60 (USD1.46) as of lunch break in Shanghai today. The shares have soared nearly 95 percent since the end of the Chinese New Year holiday at the beginning of February, when computing power leasing stocks got boosted by DeepSeek's artificial intelligence breakthroughs.

Huatie signed a five-year computing power service contract with an unnamed client from Hangzhou, the company announced yesterday. The deal is expected to generate about CNY700 million (USD96.4 million) in revenue a year and have a total equipment procurement expenditure of CNY2 billion.

Hangzhou, the capital city of China's eastern Zhejiang province, is known to be an AI industry cluster. In addition to the client, Hangzhou is also home to Huatie and DeepSeek.

Huatie was initially a construction equipment leasing company. But it recently shifted its focus to providing computing power leasing services at clients' designated intelligent computing centers.

Last October, an investment firm under the Hainan provincial government became Huatie’s new controlling shareholder. Afterward, the firm said in a statement it would leverage the policy advantages of the Hainan Free Trade Port in areas such as cross-border capital flow, taxation, investment, and data movement to accelerate the construction of intelligent computing centers and promote the advancement of its computing power service business.

Editor: Futura Costaglione