ITC Properties pivots to AI with $12.47 million acquisition

ITC Neocloud Group Ltd. (0199.HK), formerly known as ITC Properties Group Ltd., announced on Tuesday that it plans to acquire 80% of Guangzhou Chaoqi Xiyang Technology Co. Ltd. for 83.6 million yuan ($12.47 million) to expand its AI computing power orchestration services.

Established in July this year, Chaoqi Xiyang has taken delivery of 26 high-performance servers and signed two computing power orchestration service contracts with a Shanghai-based AI infrastructure company, with aggregate service fees of approximately 649 million yuan. Service delivery and collection have commenced under the first contract. A deposit has been received under the second, while collection of the first monthly service fee remains pending while invoicing procedures are in progress.

Chaoqi Xinyang recorded revenue of approximately 3.41 million yuan and a loss of approximately 29 million yuan from the time of its establishment through the end of August, with the loss mainly attributable to one-off financing advisory fees. ITC said the acquisition would bring together equipment, customer contracts and financing arrangements to accelerate the development of its computing services business.

ITC’s original businesses included property development, sales and investment. The company recorded revenue of HK$413 million ($52.6 million) in its latest fiscal year through March. Its loss for the year totaled approximately HK$528 million, narrowing by 35% year on year. The company is expanding into AI infrastructure and cloud services and recently changed its name to ITC Neocloud.

Following the acquisition announcement, ITC Neocloud’s stock rose 7.29% to close at HK$2.795 on Tuesday, bringing its gains over the past six months to more than 190%.

By Lee Shih Ta

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