China Bester (SH:603220) Chang Jiang Shang Bao·2025-11-11 23:27Core Insights - The company, Zhongbei Communication, has signed a significant contract worth up to 1 billion RMB with Xiamen Hongxin Electronics for comprehensive computing power services over the next 60 months, marking a major breakthrough in the AI computing power service sector [1][2] Group 1: Contract Details - The contract includes high-performance computing resources and related support services, with Zhongbei providing intelligent computing resources, cabinet services, and operational maintenance services [2] - The ownership of the physical computing resources will remain with Zhongbei or third parties, while Hongxin Electronics will have the right to use these resources [2] - The announced 1 billion RMB does not include cabinet services and operational maintenance, indicating that the total value of the collaboration may exceed 1 billion RMB as specific agreements are made later [2] Group 2: Business Performance - In the first half of 2025, Zhongbei's intelligent computing service revenue reached 297 million RMB, reflecting a staggering year-on-year growth of 498.21%, with an operational computing power scale exceeding 15,000 P [3] - Despite a slight revenue increase of 5.05% in the first three quarters of 2025, the company's profits have significantly declined due to reduced income from traditional 5G infrastructure and increased financial costs [3] - The partnership with Hongxin Electronics is viewed as a strategic shift for Zhongbei, emphasizing the development of intelligent computing as a new growth avenue [3]