HEC Technology to acquire Qinhuai Data China for RMB28 bn

Guangdong HEC Technology Holding (HEC Technology) will jointly invest with Shenzhen HEC Industrial Development to increase capital in Yichang Dongshu No.1 Investment Co., Ltd. HEC Technology will contribute RMB3.5 billion, and Shenzhen HEC Industrial Development will contribute RMB4 billion, facilitating the acquisition of Qinhuai Data Group's China region business operations for RMB28 billion. The acquisition includes seven wholly foreign-owned enterprises and one Variable Interest Entity within Qinhuai Data China.

The valuation is based on an appraisal report by Beijing Kunyuan Zhicheng Asset Appraisal Co., Ltd., which determined Qinhuai Data China's shareholder equity market value to be RMB29.093 billion as of May 31, 2025. This move aligns with HEC Technology’s strategy to enter the data center industry, leveraging Qinhuai Data China's established presence and technological framework.

The transaction received approval from HEC Technology's board of directors, with all independent directors consenting. The acquisition is subject to additional approvals, including anti-monopoly review, foreign exchange change registration, and external tax filing. Simulated financial statements for Qinhuai Data China indicate total assets of RMB21.87 billion and a net profit of RMB745.25 million for January to May 2025.