HON-Flex(SZ:300657) Chang Jiang Shang Bao·2025-08-03 23:33Core Viewpoint - Hongxin Electronics is making a significant investment of 12.8 billion yuan to establish a green intelligent digital infrastructure project in collaboration with the government of Qingyang, which is expected to enhance the company's positioning in the green computing power sector [1][2][3]. Investment and Project Details - The project involves a total investment of approximately 12.8 billion yuan, planned to be constructed in phases on about 500 acres of land in Qingyang [2]. - The investment will be executed through Hongxin's subsidiary, Gansu Suihong Green Computing Co., and aims to build high-performance computing centers and a national integrated computing network [2][3]. Business Strategy and Market Position - Hongxin Electronics is focusing on the AI computing power sector as a new growth point, responding to the increasing demand for computing power driven by the rapid development of artificial intelligence [3][4]. - The company has already invested 1 billion yuan to establish a manufacturing base for AI computing servers in Tianshui, Gansu, with an annual production capacity of 100,000 units [3][8]. Financial Performance - The company has faced financial challenges, with a total of 1.221 billion yuan in losses over five consecutive years from 2020 to 2024, despite a revenue increase during the same period [5][7]. - As of the first quarter of 2025, the company reported a net profit of 5.1272 million yuan, a decline of 66.39% year-on-year, and an asset-liability ratio of 78.85% [1][7][8]. Future Outlook - Hongxin Electronics is optimistic about the potential of its AI computing power business, which is expected to contribute positively to its long-term development [1][4]. - The company is also planning to raise up to 600 million yuan through a private placement to improve its liquidity, although financial pressures remain a concern [8].