Core Viewpoint - The company, Cloud Factory (02512), has issued a total of 45.985 million new shares at a subscription price of HKD 4.98 per share, raising approximately HKD 228 million in net proceeds after expenses [1] Fund Utilization - Approximately 13.2% of the net proceeds (or HKD 30 million) will be used to enhance the core business, specifically for IDC solutions and edge computing services, including procurement of high-performance edge computing hosts and hardware, development of distributed heterogeneous computing management platforms, and algorithm optimization research [1] - About 36.8% of the net proceeds (or HKD 84 million) will be allocated for business expansion, focusing on launching new services covering the entire lifecycle of intelligent computing, which includes hardware procurement, development of high-speed lossless networks, and establishment of large-scale distributed storage and computing management platforms [1] - Approximately 40.4% of the net proceeds (or HKD 92 million) will be used to establish the company's own intelligent computing center, which will provide intelligent computing services, including land and property acquisition, equipment procurement and installation, and internal renovations [1] - About 9.6% of the net proceeds (or HKD 22 million) will be allocated for working capital and general corporate purposes, such as employee expenses and office rent [1] Cash Flow Projections - By June 30, 2025, it is expected that approximately 64.0% of the company's cash and cash equivalents will be used to repay bank loans between July and October 2025, while about 36.0% will be used to settle outstanding supplier procurement costs and other expenses incurred in daily operations [1]

Core Viewpoint - Company is expanding its business into edge computing by signing a contract with China Broadcasting Sichuan Network Co., Ltd. to provide network technology services, indicating a strategic move to diversify and enhance its service offerings in response to market demands [1][9]. New Business Overview - The new edge computing business utilizes distributed computing, cloud-edge collaboration, and real-time data processing to support various scenarios such as 5G internet, offering low latency, high bandwidth, and flexible deployment [2][5]. - The edge computing market is rapidly developing, driven by technological innovation, industry demand, and policy support, with a significant shift from traditional cloud computing to edge solutions due to increasing data volumes [2][3]. Market Growth Potential - The global edge computing market is projected to grow from $60 billion in 2023 to $110.6 billion by 2029, with a compound annual growth rate (CAGR) of 13% [3]. - In China, the edge cloud market is expected to reach 6.26 billion yuan in the second half of 2023, reflecting a robust growth trend [3][4]. Business Strategy and Implementation - Company plans to leverage partnerships with telecom operators and develop proprietary edge algorithms and smart devices to create a service supply system [5][6]. - The company has obtained the necessary licenses to operate in the edge computing sector, ensuring compliance with regulatory requirements [5][6]. Rationale for New Business - The shift towards digitalization and the rise of 5G, IoT, and AI applications necessitate the adoption of edge computing to address real-time processing and local handling needs [6][7]. - The company aims to enhance its business structure and optimize its industry layout by integrating edge computing with existing resources and expertise [6][7]. Financial and Operational Aspects - The contract signed with China Broadcasting Sichuan Network is valued at 10.92 million yuan, indicating a solid initial revenue stream for the new business [9][10]. - The company will fund the new business through its own and self-raised funds, ensuring that the financial impact on short-term cash flow remains manageable [11][12]. Risk Management and Future Outlook - The company acknowledges potential risks related to market fluctuations, technological updates, and competition, and has established measures to mitigate these risks [10][11]. - Continuous monitoring of industry trends and proactive adaptation to market needs are essential for the successful implementation of the new business [11][12].