Core Viewpoint - The company is divesting two wholly-owned subsidiaries to optimize its asset structure and focus on core business areas, following a recent bankruptcy filing of another subsidiary, indicating a strategic shift towards efficiency and profitability [1][2][3]. Group 1: Asset Divestiture - The company announced the transfer of 100% equity in two subsidiaries, aiming to shed inefficient assets and reduce management costs [1]. - The divestiture comes shortly after the court accepted the bankruptcy application of another subsidiary, highlighting a concentrated effort to address loss-making assets [2]. - The financial status of the divested subsidiaries is concerning, with one having liabilities of 727 million and an asset-liability ratio of 606%, while the other has liabilities of 503 million against total assets of 240 million [2]. Group 2: Financial Performance - In Q1 2025, the company reported a revenue increase of 12.74% year-on-year, but still faced net losses primarily due to the sapphire segment [3]. - The divestiture is expected to reduce management complexity and improve financial performance by allowing for more focused resource allocation [3]. Group 3: Strategic Focus - The company is shifting its strategic focus towards AI infrastructure, aiming to enhance its capabilities in high-performance computing and related services [4]. - Investments in various regions for computing clusters are underway, with a notable project, the "Silk Road New Cloud Green Computing Center," now operational [4]. - The revenue from computing services has risen to 56.79%, surpassing the sapphire business, indicating a successful transition to a new core revenue stream [5]. Group 4: Future Outlook - The company anticipates that the streamlined structure will alleviate financial risks and enhance resource allocation efficiency, supporting its focus on AI infrastructure and computing services [6]. - The strategic shift is expected to position the company favorably in the evolving landscape of the AI era, aiming for sustainable growth and high-quality transformation [6].

Core Viewpoint - The company has reported significant changes in its revenue structure, with the comprehensive computing service business becoming the main revenue driver, surpassing sapphire business for the first time [3]. Financial Data - The quarterly financial report is unaudited, and the company guarantees the accuracy and completeness of the financial information provided [1][4]. - The comprehensive computing service business revenue accounts for 56.79% of total revenue, marking a notable shift in the company's revenue composition [3]. Shareholder Information - The report includes details on the total number of ordinary shareholders and the top ten shareholders, although specific figures are not provided in the text [2]. Other Important Information - The company emphasizes its strategic focus on core business areas, which has led to a significant optimization of its revenue structure during the reporting period [3].