(Yicai Global) May 28 -- A programming unit of Tencent Holdings will buy shares from the major shareholder of DHC Software, one of the country's leading software providers, while Tencent's cloud computing unit will partner with DHC to cooperate in the fields of new technologies such as cloud computing services, big data, and the Internet of Things.
Shanghai-based Tencent Technology agreed to buy shares in Donghua Chengxin Computer Technology Development for CNY1 million (USD 198 million) to hold a 24.69 percent stake in the company while becoming its second-largest shareholder, the Beijing-based target firm said in a statement. The investment will be used to increase the spending capital, to give loans for business operations, or to joint outward investment.
Beijing-based Tencent Cloud Computing and DHC will provide customers in the public, medical, power generation, and financial sectors with products in the fields of cloud computing, big data, and artificial intelligence.
In the field of medical service, the two parties will adopt technologies developed by Tencent to realize the speech input in electronic medical records, while applying blockchain to ensure traceability of the data. The pair will also develop an artificial intelligence diagnosis system for early cancers.
Tencent's outbound investment reached CNY54 billion during the first quarter, surpassing its net profit for the same period over two times.
DHC Software's clients include state-owned firms such as the People's Bank of China, State Grid, China National Petroleum and Air China.
Editor: Emmi Laine