Core Viewpoint - The report highlights the significant growth and performance of Runze Technology in the intelligent computing industry, showcasing its financial results and strategic advancements in technology and operations [1][2]. Financial Performance - In the first half of 2025, Runze Technology achieved an operating income of 2.496 billion yuan and a net profit attributable to shareholders of 880 million yuan [1]. - The company plans to distribute a cash dividend of 3.995 yuan per 10 shares (including tax) to all shareholders [1]. Industry Growth and Company Strategy - The intelligent computing industry continues to experience explosive growth, with expanding market size and technological iterations creating a strong resonance effect [1]. - Runze Technology has actively captured industry opportunities through various dimensions, including delivery and operations, business structure adjustments, liquid cooling technology upgrades, and asset securitization [1][2]. Delivery and Operations - The company has ensured efficient delivery schedules, completing large-scale deliveries and significantly shortening the overall delivery and commissioning cycle [1]. - In the first half of 2025, Runze Technology added one computing power center in each of its Langfang, Pinghu, Foshan, and Huizhou parks, totaling approximately 220 MW of new computing power centers delivered [1]. - As of the end of the reporting period, the company has delivered a total of 18 computing power centers, with a commissioning rate of over 90% for mature centers [1]. Business Structure Adjustment - The AIDC business structure has undergone a key upgrade, shifting focus from "customer expansion" to "high-quality operations," transitioning revenue from one-time inflows to stable profitability and long-term cooperation [2]. - This strategic shift provides more support for profitability [2]. Liquid Cooling Technology - With rapid advancements in chip and cabinet power, liquid cooling has transitioned from an optional solution to a necessary one for supporting high-power computing [2]. - Runze Technology has expanded the scale of liquid-cooled cabinets and improved the operational stability of liquid-cooled computing power centers [2]. - The company has applied its self-developed liquid cooling technology across multiple parks nationwide, creating a multi-faceted infrastructure design for high-complexity, high-computation demand applications [2]. Asset Securitization - On August 8, 2025, Runze Technology's Southern Data Center REIT was officially listed on the Shenzhen Stock Exchange, marking a significant milestone in asset securitization [2]. - This achievement activates quality existing assets and optimizes the capital structure, representing an innovative practice in the company's business architecture [2]. Future Outlook - Runze Technology aims to leverage its deep accumulation and innovative capabilities in the intelligent computing field to explore market potential and continuously strengthen its leading position in the industry [2].

Core Viewpoint - The acquisition of Shenzhen Yixin Technology Co., Ltd. by Huasheng Co., Ltd. represents a strategic move from traditional textile industry to the green computing infrastructure sector, aiming to seek a "second growth curve" despite facing significant financial and integration challenges [1][5]. Financial Performance - Huasheng Co., Ltd. has experienced continuous losses over the past five years, with revenue figures showing fluctuations: 914 million, 924 million, 901 million, 581 million, and 778 million from 2020 to 2024 [2]. - The company reported a net profit attributable to shareholders of -49.33 million in 2024, a decline of 333% year-on-year, despite a revenue increase of 34% [2]. - The gross profit margin has significantly decreased from 10% in 2023 to 4.61% in 2024, indicating challenges in profitability [2]. Cash Flow and Debt Situation - The cash flow situation is concerning, with negative operating cash flow in four out of the last five years, and a net cash flow of -64.09 million in 2024 [3]. - The debt-to-asset ratio has remained high, ranging from 49.59% to 57.37% from 2021 to 2024, indicating substantial debt pressure [3]. Acquisition Details - The target company, Yixin Technology, reported revenues of 409 million and a net profit of 27.36 million in 2024, with respective year-on-year growth rates of 20.05% and 79.45% [4]. - The acquisition is seen as a potential opportunity for Huasheng to transform, but it also poses significant integration risks [5]. Integration Risks - Business integration risk arises from the vast differences in business models, technology development, and market customers between the textile and computing industries [5]. - Management integration risk is present due to differing management styles and corporate cultures, which could lead to internal conflicts post-acquisition [5][6]. - Technical integration risk is significant as Huasheng lacks the necessary technical talent and R&D capabilities to effectively absorb and innovate within the computing sector [6].