Institutional participation expanded as of December 31, 2025, with more than 100 institutions reporting positions, underscoring the Company's sustained and growing appeal to institutional investorsNew York, NY, Feb. 18, 2026 (GLOBE NEWSWIRE) -- Chaince Digital Holdings Inc. (“Chaince Digital” or the “Company”) (Nasdaq: CD) (formerly Mercurity Fintech Holding Inc.), a digital finance and technology company focused on tokenization, on-chain innovation, and regulated brokerage services, today announced that, b ...

Core Viewpoint - Chaince Digital Holdings Inc. has announced its role as the Presenting Sponsor for the Wellball VIP League event in New York on December 20, 2025, highlighting its commitment to community engagement and brand awareness in key markets [1][2]. Company Overview - Chaince Digital Holdings Inc. (formerly Mercurity Fintech Holding Inc.) is a Nasdaq-listed company focused on blockchain and digital asset sectors, providing technology-enabled solutions across distributed computing, business consulting, and capital markets services [5]. Sponsorship Details - The sponsorship of the Wellball VIP League reflects Chaince's strategy to enhance community engagement and brand visibility, aligning with its values of innovation and connection [2][3]. - The Wellball VIP League features a unique non-contact basketball format that emphasizes shooting accuracy and mental toughness, appealing to basketball enthusiasts [3][4]. Event Information - The event on December 20, 2025, marks the conclusion of the Wellball VIP League's fall season and will prominently feature Chaince's branding across multiple high-visibility touchpoints [4].

Core Viewpoint - Chaince Digital Holdings Inc. has successfully completed a private placement with an institutional investor, raising approximately US$6.14 million to support its transition into AI-driven industrial technology and advanced manufacturing initiatives [1][4]. Funding Details - The investor acquired 1,000,000 ordinary shares at a price of US$6.14 per share, reflecting the closing price on December 5, 2025, resulting in total gross proceeds of US$6.14 million before fees and expenses [2]. Use of Proceeds - The net proceeds from the offering will be utilized for general corporate and working capital purposes, specifically to support the development of an AI and semiconductor-focused gigafactory, expansion of AI/HPC infrastructure platforms, and capital markets activities through Chaince Securities, LLC [4][8]. Company Overview - Chaince Digital Holdings Inc. focuses on digital finance and technology, emphasizing tokenization, on-chain innovation, and regulated brokerage services. The company aims to connect traditional financial markets with the digital asset economy through compliant and scalable infrastructure [6].

Core Insights - Chaince Digital Holdings Inc. has entered a non-binding Strategic Cooperation Framework Agreement with ZJK Industrial Co., Ltd. to establish a precision components R&D and manufacturing gigafactory in the U.S. aimed at serving the AI and semiconductor industries [1][2] Investment and Financial Commitment - The companies plan to invest up to $200 million through various projects, utilizing both self-owned capital and external fundraising to strengthen the U.S. high-end manufacturing ecosystem [2] Gigafactory Focus and Operations - The gigafactory will concentrate on high-value, non-restricted precision components across multiple technology categories, excluding restricted semiconductor segments like wafer fabrication and chip design [3] - A Delaware joint venture will be formed to operate the gigafactory, overseeing all operations from R&D to full-scale production [5] Competitive Advantages and Management - The collaboration aims to enhance the made-in-America vision by combining ZJK's manufacturing expertise with Chaince Digital's strengths in capital markets and digital technologies [6] - The joint venture will feature a U.S.-based management team with executives from leading American companies, targeting key industries such as AI hardware and electric vehicles [6] Product Focus - The gigafactory will produce components for AI end-devices, semiconductor equipment, liquid-cooling systems, new energy vehicles, smart wearables, and other consumer electronics [7] Strategic Advisory Role - Chaince Securities has been appointed as ZJK's capital markets strategic advisor for five years, focusing on capital markets strategy and financing needs [4][8] Leadership Statements - ZJK's CEO emphasized that the partnership will enhance their manufacturing footprint in the U.S. and support the Made in America initiative [9] - Chaince Digital's Chief Strategy Officer expressed commitment to leveraging their strengths to support the gigafactory's development [9]

Core Insights - Chaince Digital Holdings Inc. announced participation in the 31st Annual Conference of The Chinese Finance Association, highlighting its role in tokenization solutions and digital-asset capital markets infrastructure [1][2] - The conference focused on "Harnessing AI for Smarter, Safer and More Resilient Financial Markets," attracting a diverse audience from various sectors [2] Company Overview - Chaince Digital Holdings Inc. (formerly Mercurity Fintech Holding Inc.) is a fintech group leveraging blockchain infrastructure to provide technology and financial services, aiming to bridge traditional finance with digital innovation [4] - The company operates through subsidiaries, including Chaince Securities, LLC, which specializes in digital-asset investment banking and advisory services [6] Industry Trends - The institutional phase of Real-World Asset (RWA) tokenization is emerging, with expectations that the next decade will focus on integrating traditional market infrastructure with blockchain and AI technologies [3] - The convergence of AI and on-chain finance is anticipated to enhance market transparency, efficiency, and risk management, impacting credit markets and global capital flows [8]

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was RMB1,553.8 million, representing a 49.7% year-over-year growth [7][21] - Adjusted EBITDA grew by 49.9% year-over-year to RMB816.1 million, with an adjusted EBITDA margin of 52.5% [7][25] - Net income increased by 9.8% year-over-year to RMB219.2 million, with a net margin of 14.1% [7][23] - Total cost of revenue increased by 51.3% to RMB911.2 million, driven by higher utility costs and depreciation [21] - Operating income increased by 43.5% to RMB445 million, with an operating income margin of 28.6% [22] Business Line Data and Key Metrics Changes - Total client demand increased by 34 megawatts in Q2, bringing total contracted and IOI capacity to 850 megawatts [7][11] - Utilized capacity increased by 48 megawatts, reaching a total of 585 megawatts with a utilization rate of 80% [7][15] - Two new projects were put under construction, increasing total capacity by 47 megawatts to 945 megawatts [6][10] Market Data and Key Metrics Changes - The Southeast Asia market was highlighted as a key driver of demand, with significant contributions from existing clients [6][12] - The commitment ratio for total capacity was 90% at the end of Q2, compared to 91% in the previous quarter [14] - Overseas business contributed to 14% of total utilized capacity, up from around 9% in the previous quarter [21] Company Strategy and Development Direction - The company is focusing on building partnerships and investing in research and development to prepare for the AIGC era [6][13] - A strategic cooperation agreement was signed with Zhangjiakou Construction & Investment Group to enhance local digital economy [19] - The company aims to achieve a 30% share of overseas business in its overall portfolio by the end of 2025 [50] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about opportunities in the Southeast Asia market and is closely monitoring market conditions in China [12][13] - The company reiterated its full-year guidance for revenue and adjusted EBITDA, reflecting confidence in business momentum [7][25] - Management emphasized the importance of maintaining a healthy financial profile and continued investment in technology [13][19] Other Important Information - The company reported a total cash position of RMB5,915.3 million and a net debt position of RMB5,569.3 million [26] - The company’s assets return improved, with a pre-tax ROIC rising to 19.3% [27] - The company released its 2022 ESG Report, highlighting its commitment to energy efficiency and sustainability [17] Q&A Session Summary Question: Customer acceptance of cooling technology for AIGC - Management indicated that customers are willing to accept diversified cooling solutions due to varying geographical conditions and the increasing requirements for AIGC [29][30] - There is expected to be a marginal improvement in ROIC due to energy savings from these technologies [32] Question: Key driver of CapEx for 2023 - Management clarified that the estimated CapEx for 2023 is now expected to be in the range of RMB7 billion to RMB9 billion, driven by new pipeline projects [33][35] Question: AI-related demand and new clients - AI-related servers are estimated to account for around 5% of current overall capacity, with expectations for this portion to increase [41] - The company plans to focus solely on collocation services and not provide computing power directly [43] Question: Competition dynamics in Southeast Asia - Management acknowledged open field competition in Southeast Asia and expressed confidence in gaining a larger market share due to operational efficiency and delivery capabilities [46][48] - The goal is to achieve over 50% wallet share from the anchor customer in the Southeast Asia market [50]

Q2 2023 Highlights - The company's total capacity reached 945 MW, with a 47 MW increase in Q2 2023[10] - In-service capacity increased by 91 MW in Q2 2023, reaching 730 MW[10] - Contracted & IOI capacity reached 850 MW, with a 34 MW increase in Q2 2023[10] - Utilized capacity reached 585 MW, with a 48 MW increase in Q2 2023[10] - The contracted & IOI ratio was 90% by Q2 2023[10] - Revenue in FY23Q2 was RMB 1,553.8 million, a 49.7% year-over-year increase[10] - Adjusted EBITDA in FY23Q2 was RMB 816.1 million, a 49.9% year-over-year increase, with an adjusted EBITDA margin of 52.5%[10] - GAAP net income in FY23Q2 was RMB 219.2 million, a 9.8% year-over-year increase, with a GAAP net margin of 14.1%[10] - The company reiterated its 2023 guidance, with revenue expected to be between RMB 5,880 million and RMB 6,080 million, and adjusted EBITDA expected to be between RMB 3,100 million and RMB 3,220 million[10] Business Updates - A new hyperscale project, CN20, with a designed capacity of 49 MW located in Datong campus in Shanxi Province, is 100% committed by the client[18] - MY06-2, a hyperscale project with a designed capacity of 42 MW located in Johor, Malaysia, was running at 76% utilization ratio by 23Q2 and is 100% committed by the client[18] - MY06-4, a new 12 MW hyperscale project in Johor campus, Malaysia, is scheduled for delivery starting from 24Q1 and is currently 100% committed[19] - CN23, a new 26 MW hyperscale project in one of the campuses in Zhangjiakou city, Hebei Province, is scheduled for delivery starting from 25Q1 and is currently 49% contracted[19] - MY06-3, an existing 43 MW hyperscale project in Johor campus, Malaysia, was further expanded to 53 MW during 23Q2 and is currently 100% committed[19] Financials - Total revenue for H1 2023 reached RMB 2,997.3 million, a 53.0% year-over-year increase[62] - Adjusted EBITDA for H1 2023 reached RMB 1,629.9 million, a 56.9% year-over-year increase[67] - Net income after taxes for H1 2023 reached RMB 472.2 million, a 60.5% year-over-year increase[62] - The company's total debt reached RMB 11,668.2 million[84]

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was RMB1,443.5 million, representing a 56.8% year-over-year growth [10][22] - Adjusted EBITDA grew by 64.6% year-over-year to RMB813.8 million, achieving a new high margin of 56.4% [10][25] - Net income increased by 167.5% year-over-year to RMB253 million, with a net margin of 17.5% [10][23] - Operating income rose by 81.3% to RMB456.1 million, with an operating income margin of 31.6% [23] Business Line Data and Key Metrics Changes - The company added one new project, increasing total capacity by 27 megawatts to 898 megawatts [8][12] - Total utilized capacity reached 537 megawatts, with a solid utilization rate of 84% [9][17] - Client commitment rate stood at 91% of total capacity, with an additional 16 megawatts secured in Q1 [9][14] Market Data and Key Metrics Changes - Overseas business contributed approximately 9% of total utilized capacity, consistent with previous quarters [22] - The company secured a contracted capacity of around 2 megawatts for an existing Northern China project [14] - The commitment status of the asset portfolio remained healthy, with over 95% of contracts having terms of 10 years or longer [17] Company Strategy and Development Direction - The company is focused on energy-efficient data center solutions, leveraging its unique supply model and in-house capabilities [7][10] - There is a strong emphasis on accommodating AI-related demand, with plans to enhance high-density cabinet deployments [6][15] - The company aims to cooperate with partners in renewable energy generation and storage to achieve green data center objectives [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy demand for data center services driven by advancements in AI and machine learning [6][10] - The company reiterated its full-year revenue guidance range of RMB5.88 billion to RMB6.08 billion, with an optimistic outlook for adjusted EBITDA [11][29] - Management noted that the operating cash flow has normalized and is expected to continue improving [66] Other Important Information - The company received multiple awards for its data center design, construction, and energy efficiency [20][21] - The total cash position at the end of Q1 was RMB5,769.3 million, with a net debt position of RMB5,245.4 million [27][28] Q&A Session Summary Question: Inquiry about EBITDA margin improvements - Management attributed the EBITDA margin improvement to accelerated customer move-ins, cost control, and the absence of expected diesel consumption due to unexecuted public substation revamping [31][33] Question: Concerns about net adds in capacity - Management confirmed that most new project deliveries are expected in the second half of the year, with confidence in exceeding revenue guidance due to AI-related demand [36][38] Question: Energy storage integration policies - Management highlighted the importance of energy storage systems for data centers and plans to collaborate with partners in renewable energy to enhance efficiency [40][42] Question: Clarification on revenue guidance and AIGC demand - Management indicated that the revenue guidance includes potential incremental AIGC demand, with expectations for increased demand from anchor clients [46][50] Question: Operating costs sustainability - Management noted that while operating costs may fluctuate, the overall cost control measures and stable utility costs are expected to support healthy margins [60][64]

Financial Performance - Revenue for Q1 2023 was RMB1,443.5 million, representing a 56.8% year-over-year growth[2] - Net income for Q1 2023 was RMB253.0 million, reflecting a 167.5% year-over-year increase[2] - Adjusted EBITDA for Q1 2023 increased by 64.6% year-over-year to RMB813.8 million, with an adjusted EBITDA margin of 56.4%[2] - Operating income in Q1 2023 increased by 81.3% to RMB456.1 million (US$66.4 million) with an operating income margin of 31.6%[16] - Net income in Q1 2023 rose by 167.5% to RMB253.0 million (US$36.8 million), resulting in a net income margin of 17.5%[17] - Adjusted net income in Q1 2023 grew by 77.9% to RMB315.8 million (US$46.0 million), achieving an adjusted net income margin of 21.9%[20][21] - Revenue for the three months ended March 31, 2023, was RMB 1,443,547, representing a 3.7% increase from RMB 1,390,254 for the previous quarter[39] - Net income for the same period was RMB 252,972, a significant increase of 116.7% compared to RMB 116,462 in the previous quarter[39] - Adjusted EBITDA for the three months ended March 31, 2023, was RMB 813,800, reflecting a margin of 56.4%[44] - Operating income increased to RMB 456,110 for the three months ended March 31, 2023, up from RMB 309,376 in the previous quarter, marking a 47.5% increase[39] - The net income margin improved to 17.5% for the three months ended March 31, 2023, compared to 8.4% in the previous quarter[44] Capacity and Utilization - Total capacity reached 898MW by the end of Q1 2023, a 27.6% year-over-year increase[3] - Utilized capacity grew by 12MW to 537MW, representing a 56.1% year-over-year growth, with an overall utilization ratio of 84%[7] - Total contracted and "Indication of Interest" (IOI) capacity increased by 16MW to 816MW, a 31.8% year-over-year growth[3] Guidance and Outlook - The company reiterated its 2023 revenue guidance of RMB5,880 million to RMB6,080 million and raised its adjusted EBITDA guidance to RMB3,100 million to RMB3,220 million[2] - The company updated its full-year 2023 revenue guidance to RMB5,880 million – RMB6,080 million, reflecting a 29.2-33.6% increase over 2022[24] - Adjusted EBITDA guidance for 2023 was revised to RMB3,100 million – RMB3,220 million, indicating a 31.0-35.6% increase over 2022[24] Expenses and Cash Flow - Total operating expenses in Q1 2023 decreased by 1.4% to RMB167.1 million (US$24.3 million) from RMB169.5 million in Q1 2022[15] - Research and development expenses in Q1 2023 were RMB24.9 million (US$3.6 million), a 29.5% increase from RMB19.2 million in Q1 2022[15] - Selling and marketing expenses in Q1 2023 decreased by 4.3% to RMB21.4 million (US$3.1 million) from RMB22.4 million in Q1 2022[15] - Cash generated from operating activities reached RMB 693,276 for the three months ended March 31, 2023, compared to RMB 389,401 in the previous quarter, an increase of 78.1%[41] - The company reported a net cash increase of RMB 1,705,045 for the three months ended March 31, 2023, compared to a net decrease of RMB 923,708 in the previous quarter[41] - As of March 31, 2023, the company had cash, cash equivalents, and restricted cash of RMB5,769.3 million (US$809.3 million), up from RMB4,064.2 million as of December 31, 2022[22] Awards and Recognition - The Lingqiu campus received the Data Center Design and Construction Award, highlighting the company's commitment to environmentally friendly practices[8] Financial Health - The company maintained a pre-tax ROIC of 18.7% by the end of Q1 2023, reflecting strong financial health[5] - Basic earnings per share for the three months ended March 31, 2023, was 0.35, up from 0.16 in the previous quarter[39] - The company experienced a foreign exchange gain of RMB 2,045 for the three months ended March 31, 2023, compared to a loss of RMB 4,174 in the previous quarter[39]

Financial Risks and Regulatory Compliance - The company is exposed to foreign currency risks due to a substantial portion of revenues and expenses being denominated in Renminbi, which may negatively impact financial results when translated into U.S. dollars[185]. - Compliance with U.S. public company regulations is expected to increase legal and accounting costs, potentially impacting financial results[192]. - The company may incur significant costs related to compliance with the Sarbanes-Oxley Act, diverting management's attention from core operations[192]. - Changes in China's economic and political conditions could materially affect the company's operations and financial results[204]. - The evolving legal environment in the PRC may materially affect the company's business and prospects, potentially leading to a decline in the value of its ADSs[206]. - Future regulatory changes could impose additional compliance requirements that may adversely affect the company's operations[236]. - The company may face uncertainties regarding the approval and filing requirements from the CSRC for future financing activities[259]. - The company faces potential penalties from the CSRC or other PRC governmental authorities if it fails to obtain necessary approvals for offshore equity or debt financing activities[261]. - The company must comply with SAFE regulations regarding offshore investment activities, which may expose it to liabilities if not adhered to[268]. - The company is subject to fluctuations in the Renminbi exchange rate, which could adversely affect its financial condition and the value of dividends payable in foreign currencies[265]. - Future restrictions by the PRC government on foreign currency access could limit the company's ability to pay dividends in foreign currencies[266]. Operational Challenges and Market Conditions - The merger of Chindata and Bridge Data Centres in 2019 has resulted in a limited operating history, making it challenging to predict future performance and financial prospects[189]. - The company faces risks related to natural disasters and health epidemics, which could disrupt operations and adversely affect financial condition[196]. - Political tensions between the United States and China could reduce trade and investment levels, negatively impacting the company's business and financial condition[197]. - The company faces challenges from third-party contractors who may pass on their increased labor costs, potentially raising service costs[283]. - Rising inflation and labor costs in China are expected to negatively impact profitability and growth, with average wages anticipated to continue increasing[281]. Corporate Structure and Governance - The company operates through a VIE structure, which may face regulatory scrutiny and could affect the enforceability of contractual arrangements[198]. - The registered shareholders of the VIEs may have conflicts of interest that could adversely affect the company's control and economic benefits from the VIEs[231]. - The company has no arrangements to address potential conflicts of interest between the shareholders of the VIEs and itself[232]. - The company relies on contractual arrangements that have not been tested in a court of law, which may limit its operational control[228]. - The company may lose the ability to use and enjoy the assets of the VIEs if they undergo bankruptcy or liquidation, which could materially and adversely affect its business[239]. - The company has the right to prevent unauthorized voluntary liquidation of the VIEs by requesting shareholders to transfer their equity ownership interests[240]. Taxation and Financial Implications - The company is subject to PRC value-added tax rates ranging from 6% to 13% on revenues generated from its contractual arrangements with the VIEs[227]. - The withholding tax rate of 10% applies to dividends payable by mainland China companies to non-PRC-resident enterprises, which could limit the company's ability to grow[253]. - The PRC Enterprise Income Tax Law imposes a 10% withholding tax on dividends payable to non-PRC investors, which could adversely affect non-PRC shareholders[296]. - The company may face uncertainties regarding the reporting and implications of past and future transactions involving PRC taxable assets, potentially leading to additional tax liabilities[294]. - Compliance with PRC regulations regarding indirect transfers of equity interests may result in unfavorable tax consequences for the company and its non-PRC shareholders[295]. Shareholder Rights and Market Dynamics - The company does not expect to pay dividends in the foreseeable future, relying on price appreciation for returns on investment[326]. - The dual-class structure may prevent inclusion in certain stock market indices, potentially affecting trading price and liquidity of the ADSs[322]. - Significant sales or perceived potential sales of ADSs could lead to a decline in market price[329]. - The trading volume and price of ADSs may be influenced by fluctuations in quarterly results and changes in financial estimates by analysts[318]. - The company retains discretion over dividend declarations, which may depend on future operational results and cash flow[327]. - Holders of American Depositary Shares (ADSs) may experience dilution in their holdings due to limitations on participation in future rights offerings[338]. Legal and Jurisdictional Issues - The company is incorporated under Cayman Islands law, which may complicate legal actions against it or its directors in the U.S.[350]. - The company's fifth amended and restated articles of association provide that U.S. federal courts will have exclusive jurisdiction for disputes arising under the Securities Act or the Exchange Act[357]. - The deposit agreement limits ADS holders' rights to pursue claims against the depositary, including waiving the right to a jury trial[342]. - The depositary may close its books at any time, which could limit the transferability of ADSs[349]. - Certain corporate governance practices in the Cayman Islands differ significantly from those in the United States, potentially affording less protection to shareholders[355]. Auditor and Compliance Concerns - The company’s auditor, Ernst & Young Hua Ming LLP, is subject to PCAOB inspection issues, which could lead to delisting of its ADSs if not resolved[308]. - The SEC may prohibit trading of the company's shares if its auditor is not inspected for two consecutive years under the Holding Foreign Companies Accountable Act[307]. - The company has been identified as a "Commission-Identified Issuer" due to PCAOB inspection limitations, impacting its ability to trade in the U.S. market[308]. - The inability of the PCAOB to conduct inspections could lead to a loss of investor confidence in the company's financial statements[312].