Xiamen Hongxin Electronics Technology Group Inc. (300657.SZ) announced that the company and a state-owned enterprise in Shenzhen (referred to as "X State-owned Enterprise") signed a "Strategic Cooperation Agreement" on July 3, 2024, in order to fully grasp the huge opportunities and severe challenges brought by the fourth technological revolution with artificial intelligence as its core. They will optimize the enterprise's strategic layout, build core competitiveness for the future, and jointly promote the development of artificial intelligence computing power business. Adhering to the principles of "innovative mechanism, efficient and practical, resource sharing, and mutual benefit", the agreement was signed focusing on mutual cooperation and development.
The strategic goal of the company's AI business is to become a provider of computing power hardware and overall solutions. The company has formed a complete commercial closed loop in this field, as well as rich key resources and software and hardware capabilities. It can provide customers with comprehensive services including computing chip procurement, server assembly and production, computing network, computing scheduling and operation management, maintenance, and computing disposal, significantly reducing the threshold for customers to participate in the computing industry. The development of artificial intelligence (AI) applications in the South China Greater Bay Area is very active, and it is in a leading position in the country. The demand for computing power is growing rapidly. The company focuses on the computing power markets in Beijing, Shanghai, Haixi, and the South China Greater Bay Area. The signing of this agreement is a breakthrough for the company's AI computing power business in the South China Greater Bay Area market; it has a very positive impact on the rapid landing of the company's computing power business, the development and branding of the company's computing power in the South China Greater Bay Area market, and is conducive to both parties fully leveraging their unique resource advantages in the service field and jointly strengthening the supply capacity of computing power infrastructure to promote the deep integration and extensive application of the digital economy in diverse fields.