Xiechuang Data's High-Stakes Gamble – Ploughing RMB12.2 Billion into Computing Power Sector Amid Surging Debt as H-Share Listing Pushes Ahead

ZC Asia has learnt that Xiechuang Data Technology Co., Ltd. (A-share ticker: 300857.SZ) has formally submitted its listing application to the Hong Kong Stock Exchange, planning to launch on the Main Board via an ‘A+H’ dual-class share structure. This IPO is viewed as a pivotal move to alleviate the company's capital pressures and underpin the expansion of its computing power business.  

Hundred-billion procurement ‘all-in’ on computing power, financial leverage soars

Since 2025, Xiechuang Data has issued five asset procurement announcements, cumulatively planning investments not exceeding RMB 12.35 billion, with RMB 12.2 billion specifically earmarked for computing power servers. This scale equates to 3.4 times the company's net assets for the first half of 2025 (RMB 3.599 billion), underscoring its determination to fully commit to the AI computing power sector.  

However, this large-scale procurement has strained the company's financial position. Its debt-to-asset ratio surged from 55.66% at the end of 2024 to 75.94% by the end of the first half of 2025, with total liabilities soaring by RMB 7.335 billion to RMB 11.401 billion. To address funding requirements, Xiechuang Data secured additional financing through multiple channels, including new bank credit lines (totalling RMB 8 billion) and financial leasing arrangements (such as a RMB 200 million sale-and-leaseback scheme). However, borrowing rates have risen significantly, with the upper limit increasing from 4.4% in 2024 to 6.9% in the first half of 2025.  

Although Xiechuang Data secured NVIDIA Cloud Partner status through its subsidiary, uncertainties in the international trade environment introduced variables for high-end server procurement. The company responded that ‘procurement channels remain unimpeded’ and emphasised supplier diversification, though it did not disclose the proportion of imported versus domestically produced equipment.  

Financial data indicates fixed assets surged from RMB 557 million at end-2024 to RMB 2.479 billion by end-H1 2025, while construction in progress rose from RMB 160 million to RMB 1.288 billion, reflecting accelerated computing infrastructure development. However, ‘payment upon delivery and acceptance’ clauses in H2 procurement contracts and undefined delivery timelines reveal funding and supply chain pressures.  

In the first half of 2025, Xiechuang Data disclosed its intelligent computing power business revenue separately for the first time. This segment contributed RMB 1.221 billion (24.7% of total revenue) with a gross margin of approximately 20%, exceeding the company's overall level. The company stated that ‘business volume will increase more significantly in the second half’ and that its order backlog remains robust.  

However, unlike peers frequently disclosing substantial sales contracts, Xiechuang Data has not publicly detailed its computing power service orders, sparking market concerns over capacity utilisation. The company explained that certain contracts were exempted from disclosure due to ‘confidentiality requirements’ and emphasised its ‘order-first’ approach. Yet, the precedent of Hainan Huatie abruptly cancelling a ¥3.7 billion computing power order remains a cautionary tale, prompting investors to scrutinise the authenticity of industry orders.  

Shareholder Sell-offs and Risk Calculations Amid Industry Competition  

In the secondary market, Xiechuang Data's share price has surged approximately 110% year-to-date. However, its controlling shareholder, Xiechuang Wisdom, cashed out around RMB 600 million through share sales in the first quarter, while seven directors and senior executives collectively reduced their holdings in July. Concurrently, Chairman Geng Kangming publicly stated that ‘AI computing power demand holds a thousandfold growth potential,’ while Caitong Securities forecasts the company's net profit attributable to shareholders could reach RMB 1.162 billion by 2025.  

Industry perspectives are divided: some believe Xiechuang Data, leveraging its storage and IoT business foundations, could seize early advantages in computing power; others caution that its high-debt, high-investment model raises sustainability concerns amid fierce industry competition.  

For Xiechuang Data, the H-share listing represents not only an inevitable choice to broaden financing channels but also a crucial step in underpinning its computing power ambitions. The company candidly acknowledges: ‘Failure to secure funding on acceptable terms may necessitate delaying or abandoning expansion plans.’ The outcome of this high-stakes gamble on AI computing power remains to be seen. 

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.