(Yicai) Oct. 20 -- Sharetronic Data Technology, a Chinese provider of advanced hardware and software solutions, has received a long-term artificial intelligence computing cloud service order worth up to CNY37.5 billion (USD5.6 billion).

Sharetronic Data’s subsidiary Xiechuang Intelligent Computing Technology Shenzhen will provide AI computing cloud services to an unnamed client for five years, the Shenzhen-based parent company announced yesterday. The client has the option to extend the contract for five more years.

The computing facilities in the contract will be put into formal use and will count toward the company’s earnings only after the client confirms they meet the required standards, Sharetronic Data noted, adding that the client will pay service fees monthly.

Sharetronic Data did not disclose the client’s name nor provide further details about the computing service contract, citing business confidentiality and the potential risk of unfair competition and breach of contract.

This contract is expected to have a positive impact on Sharetronic Data’s operating performance in the future, strengthen its core competitiveness and market influence, and further the high-quality upgrade of its computing business, the firm pointed out.

However, Sharetronic Data also warned that before the contract is fulfilled, the company will need to invest a large amount of capital upfront to purchase hardware, such as computing servers, which will generate significant financial costs and may impact its net profit in future years.

As a result, Sharetronic Data’s shares [SHE: 300857] were trading down 6.2 percent at CNY203.38 (USD30.44) as of 1.05 p.m. in Shenzhen today.

Intelligent computing services is one of Sharetronic Data’s four major business segments. It provides integrated computing infrastructure solutions based on customers’ server configurations and application scenarios, with leading Chinese internet companies, large language model developers, and telecommunications operators among its clients.

Sharetronic Data’s revenue from the intelligent computing services business reached CNY3.2 billion (USD481 million) in the first half of the year, up 163 percent from a year earlier, accounting for 26 percent of the total revenue in the period, according to the company's 2026 semiannual report.

Editor: Futura Costaglione