Core Viewpoint - Guangdong-Hong Kong Bay Holdings has transformed from a property developer with a debt ratio of 99% to a digital ecosystem operator, achieving a net profit of RMB 970 million after acquiring AI computing power company Wisdom Knight Holdings for HKD 977 million [1][6]. Group 1: Acquisition Details - The acquisition of Wisdom Knight Holdings Limited marks a significant shift for Guangdong-Hong Kong Bay Holdings, which previously faced a debt crisis but has now pivoted towards the AI computing sector after a successful debt-to-equity swap of USD 440 million [1][4]. - Wisdom Knight Holdings is recognized as a leading operator in intelligent computing construction in China, being one of the earliest to establish A-level third-party data centers [2][4]. Group 2: Financial Performance - Wisdom Knight's revenue has shown rapid growth, with projections of RMB 50.9 million, RMB 61.6 million, and RMB 230 million for the years 2022 to 2024, respectively, and reaching RMB 174.4 million in Q1 2025 [4]. - Following the debt restructuring, Guangdong-Hong Kong Bay Holdings reduced its interest-bearing debt ratio from 45% to 7%, achieving a remarkable turnaround with a net profit of RMB 970 million in the first half of 2025 [4][6]. Group 3: Strategic Transformation - The acquisition is not merely a business addition but represents a profound restructuring of capital logic, transitioning from heavy asset costs to light asset technology assets [1][6]. - The integration of idle factories and land resources into high-performance computing centers signifies a strategic upgrade from being a "physical space builder" to a "digital ecosystem operator" [1][6]. Group 4: Market Position and Valuation - The AI computing sector is being likened to "new oil" in the digital economy, characterized by high barriers, high margins, and high repurchase rates, making it attractive to capital markets [6][7]. - The valuation of Guangdong-Hong Kong Bay Holdings is undergoing a fundamental transformation, with potential market value growth of 50% based on the projected earnings from the AI computing segment [7][8]. Group 5: Future Outlook - The merger is expected to create a dual-driven model of "industrial operation asset securitization + computing operation revenue," similar to the digital infrastructure REITs model in the U.S. [7][8]. - The long-term strategy aligns with the annual growth of 40% in AI computing demand and the digital transformation policies in the Guangdong-Hong Kong-Macao Greater Bay Area [7][8].