Planning to acquire control of Dongshu No. 1, Dongyangguang continues to expand its computing power industry footprint

Economic Reference News Reporter Lu Yu’an

Against the backdrop of digital China’s deepening construction during the 14th Five-Year Plan and the ongoing implementation of the “East Data West Computing” project, computing infrastructure has become a vital support for high-quality digital economy development. On the evening of March 6, Guangdong Dongyangguang Technology Holdings Co., Ltd. (referred to as “Dongyangguang,” 600673.SH) announced plans to acquire a 70% stake in Dongshu No. 1 directly and indirectly through issuing shares, while simultaneously raising supporting funds from specific investors. After the transaction, Dongyangguang will directly and indirectly hold 100% of Qinhuai Data, a leading domestic IDC company.

This series of capital operations centered around Qinhuai Data has attracted widespread market attention and has become an important window for investors to observe the digital transformation of advanced manufacturing enterprises. From the initial stake in September 2025 to the major asset restructuring planned for February 2026 to acquire core control, this capital layout has progressed through multiple stages and is still ongoing.

Planning to Restructure and Control Qinhuai Data

According to the announcement, Dongyangguang’s strategic deployment in the computing sector is gradually deepening, showing a clear timeline.

On September 10, 2025, the board of directors approved a proposal to jointly increase capital with related parties in Dongshu No. 1, aiming for Dongshu No. 1’s subsidiary, Dongshu No. 3, to acquire 100% of Qinhuai Data. The transaction was completed on January 17, 2026, with Dongyangguang investing a total of 3.45 billion yuan in Dongshu No. 1, and Dongshu No. 3 paying 28 billion yuan (including withholding and tax payments). As a result, the company indirectly participated in Qinhuai Data, marking an initial layout in the computing sector.

In February 2026, Dongyangguang initiated further capital operations. On February 24, the company announced plans to acquire control of Dongshu No. 1 through share issuance and to raise supporting funds. The announcement indicated that this transaction would constitute a major asset restructuring and related-party transaction. Dongyangguang’s stock was officially suspended from trading starting February 24, and on March 3, it disclosed ongoing evaluation of the transaction plan. On March 6, Dongyangguang further announced the formal plan to purchase assets via share issuance and raise supporting funds, along with related-party transaction arrangements.

Regarding the strategic shift from minority stake to controlling stake, a senior executive of Dongyangguang stated: “This decision is made after careful study of national policy guidance and our own business development strategy. Through earlier cooperation, we gained deeper understanding and insights into the target assets and IDC industry operations, which further strengthened our commitment to building green computing infrastructure. The current push for control aims to achieve more efficient resource integration and to establish a competitive industry barrier through the integration of ‘green energy – advanced manufacturing – computing operations – AI applications’.”

Deep Integration of Green Power and Computing, Manufacturing and Data Integration to Unlock Synergies

Public information shows that Qinhuai Data, as China’s leading neutral third-party operator of large-scale computing infrastructure solutions, ranked first in the “Top 10 Chinese Computing Center Service Providers 2024” list published by the China Academy of Information and Communications Technology (CAICT) in terms of green low-carbon and intensive development. Technologically, Qinhuai Data has been granted and is applying for over 500 patents, making it the only third-party IDC operator listed in the 2025 “Fortune China Top 50 Tech Companies.”

In terms of performance, Qinhuai Data’s revenue in 2024 and 2025 was 6.048 billion yuan and 6.382 billion yuan, with net profits of 1.309 billion yuan and 1.655 billion yuan, respectively.

An insider from Dongyangguang told reporters that this transaction is a key move in response to the national “East Data West Computing” project and other major strategic deployments supporting digital China.

As an advanced manufacturing enterprise, Dongyangguang’s core business previously covered six sectors including electronic components, liquid cooling technology, and embodied intelligence. The planned acquisition of Qinhuai Data will help expand the company’s business boundaries and enter the high-growth digital infrastructure sector of IDC. This aligns with policy encouragement of cross-industry mergers and acquisitions aimed at transformation and upgrading.

Additionally, Dongyangguang will leverage Qinhuai Data’s top-tier customer resources and industry experience to promote its core businesses such as liquid cooling technology and electronic components in the high-end AI server market, achieving a dual-driven growth of “manufacturing + computing power.”

The aforementioned insider also pointed out that the cooperation between Dongyangguang and Qinhuai Data forms a development model aligned with dual-carbon goals from three aspects: industry synergy, technological innovation, and resource deployment.

At the industry level, Dongyangguang’s embodied intelligence and high-computing businesses can synergize internally with Qinhuai Data’s IDC services, reducing carbon emissions associated with external computing power procurement. Moreover, joint development of solid-state transformer-based intelligent DC power supply systems with partners can effectively lower power transmission losses.

Technologically, Dongyangguang has a full-stack layout in cold plate liquid cooling and two-phase immersion cooling, with core materials technology that can be combined with Qinhuai Data’s experience in high-power server operation and maintenance to develop customized cooling systems, further reducing data center PUE and enhancing green data center standards. Qinhuai Data holds over 500 patents related to data centers and has deep expertise in efficient cooling and intelligent operation and maintenance. Their collaboration can realize energy savings across the entire lifecycle of computing infrastructure.

In terms of resources, Dongyangguang has clean energy reserves and industrial layouts in regions such as Shaoguan in Guangdong, Ulanqab in Inner Mongolia, and Yichang in Hubei, enabling cost control and optimization from energy supply. Qinhuai Data has established large-scale computing infrastructure clusters at key nodes such as the Beijing-Tianjin-Hebei region, Yangtze River Delta, Pearl River Delta, and northwest China, with a total operational data center IT capacity of 799 MW, about 690 MW of under-construction and short-term reserve capacity, and a long-term plan of approximately 4 GW. It also plans to develop GW-level zero-carbon green intelligent computing parks in Ulanqab, Shaoguan, and Zhongwei, aligning with Dongyangguang’s clean energy bases to achieve precise matching of computing resources and green electricity, forming a nationwide green computing network covering the north, central, and south regions.

Capital Empowerment for New Productivity, Market-Oriented M&A as Industry Benchmark

Recently, the China Securities Regulatory Commission issued the “Opinions on Deepening Market Reform of Listed Company Mergers and Acquisitions,” supporting listed companies’ strategic M&A and guiding resource factors toward new productivity. The National Venture Capital Guidance Fund has also been officially launched to inject financial support into emerging industries such as integrated circuits and artificial intelligence. Industry insiders say that Dongyangguang’s strategic upgrade from minority stake to controlling stake, achieved through market-oriented M&A to deepen industry chain integration, exemplifies the current reform-driven support for technological innovation and new productivity cultivation in the capital market.

Analysts believe that Dongyangguang’s phased approach—from minority stake to controlling stake—reflects a long-term optimistic outlook and strategic commitment to the computing sector. It provides a solid model for large-scale M&A and orderly integration of high-quality assets, and offers practical reference for foreign capital returning to Chinese-controlled computing assets and safeguarding national data security. This not only facilitates the company’s own transformation and upgrading but also demonstrates how market-based resource integration can promote green computing development. In the future, this model is expected to serve as a reference for more listed companies, utilizing capital market tools to integrate industry chains around national strategic directions and achieve high-quality development.

A senior industry expert believes that if this transaction proceeds smoothly, Dongyangguang will leverage its experience in advanced manufacturing and clean energy reserves, combined with Qinhuai Data’s advantages in computing operations, to build a “green energy – advanced manufacturing – computing operations – AI applications” four-in-one competitive infrastructure and computing service provider. This will contribute to optimizing national computing resource allocation, achieving “dual-carbon” goals, and cultivating new productivity, thereby promoting the deep integration of digital and real economies.