Zhitong Financial and Economic APP News, Hongxin Electronics (300657.SZ) issued a notice that in order to fully implement the overall strategic layout of the country and promote the rapid development of digital economy construction in Gansu Province and Tianshui City, in accordance with the purpose of "overall planning and common development", friendly negotiations have been conducted on the basis of equality and mutual benefit. The company's subsidiary Gansu Flint Hong artificial Intelligence Technology Co., Ltd. (hereinafter referred to as "Gansu Flint Hong") and China Jingdian Investment Energy Group Co., Ltd. (hereinafter referred to as "China Jingdian Investment") signed the Tianshui Gansu Province Intelligence Center Investment headquarters Project Cooperation Agreement on October 15, 2023.

It is reported that according to the needs of computing terminal customers, the two sides will cooperate to build an intelligent computing center project in Tianshui. The total investment of the project is about 1 billion yuan. Beijing Power Investment is responsible for the investment and fund-raising. All the investment funds are used for the procurement of high-end computing servers and purchased from Gansu Flint Hong. After the completion of the investment and construction of the center, Gansu Flint Hong or Gansu Flint Hong designated the leaseholder to lease all the high-end computing servers to the project company, the lease term is 5 years from the date of rent; the total rent for the 5-year lease period is 82% of the investment amount (including tax) for the project in accordance with this agreement and the relevant supplementary agreement, and the rent is shared equally on a daily basis.

The company said that the early stage of the company's AI computing server business market expansion focused on the important layout areas of Gansu, Sichuan and other countries, and jointly promoted the construction of large-scale computing infrastructure with local governments and relevant enterprises, and promoted the landing of basic hardware in China's industries such as "eastern math and western computing", supercomputing centers, and artificial intelligence. According to the needs of potential end customers, the subsidiary Gansu Flint Hong will provide a large number of independent "Flint Hong" brand high-end computing servers for the Intelligent Computing Center project. The server is equipped with NVIDIA Corp's high-end AI computing chip to meet the needs of end customers for large-scale training and reasoning.

At the same time, the company is also actively promoting the national production of computing servers. According to the needs, the "Flint Hong" brand computing servers will be equipped with domestic high-end computing chips made by the company's strategic partners, such as Flint Hara Technology and Moore Thread. Relevant domestic servers have completed a large number of research and development and testing, and their performance has reached the advanced level of similar products. This agreement marks a solid step in the layout of the company's high-end AI computing server business, which is conducive to optimizing the company's business structure, promoting the company's operation and development, and enhancing the company's profitability, which is in line with the company's development strategy.