Allocation subscribed by state-owned enterprises: Yuexiang Bay Holdings (01396) AI track layout enters the "fast lane"

On December 4th, Yuegangwan Holdings (01396) announced that the company had entered into a placement agreement with investors to issue 34,181,818 shares at a placement price of HK$5.5 per share, representing 2.95% of the enlarged issued share capital after the placement. The placement price was at a discount of approximately 5.53% compared to the average closing price of the last five consecutive trading days prior to the subscription agreement date. This placement can be described as "small placement, large institutions, low discount". The placement involved the introduction of CMBI SPC, a standalone investment portfolio company under China Merchants Bank, and Toprise Limited. Toprise is an early shareholder of the company, currently holding a 3.53% stake. It is worth noting that Toprise's actual owner Wang Jian, whose father Wang Zaixing was the founder shareholder of "Yide International Holdings" (predecessor of Yuegangwan), once again demonstrated its trust in the company by participating in the placement. However, a subsequent announcement revealed that Toprise's subscription was terminated due to related party transactions, and both parties would discuss and take further action later. The investor, CMBI SPC, made an irrevocable and unconditional commitment to a lock-up period of 6 months, injecting confidence into the market. The placement price was consistent with the debt-to-equity conversion in June, indicating strong confidence from these two investors in the company's development. The proceeds from the subscription, approximately HK$108 million, will be mainly used for the delivery of AI computing power cloud service projects, showcasing the company's confidence in its new AI business transformation. In the secondary market, the company has been continuously sought after by value investors since 2025. The company's ability to attract investors is mainly due to the reversal of fundamental expectations and accelerated transformation this year. On one hand, the company cleared its foreign dollar debt and restructured for the future, while on the other hand, it entered the AI intelligent computing track through acquisitions, transitioning from a "physical space builder" to a "digital ecosystem operator". This year, the company has done three major things: first, the real estate industry still faces challenges, so the company will continue to improve the operational efficiency of high-quality assets and enhance cash reserves and profitability. Second, continuous optimization of finances, while adhering to high-quality development. Faced with high debt risks in the industry, the company, from a macro perspective, completed a US$440 million debt-to-equity conversion plan with a high pass rate of 98.33% in May, becoming the first domestic real estate company to almost completely clear its foreign dollar debt, reducing its interest-bearing debt ratio from 45% to 7%. Additionally, the company's asset-liability ratio dropped from 99% at the end of 2024 to 48% in the first half of this year, standing out in the industry in terms of these two debt indicators. Third, keeping up with industry trends and accelerating the layout of the AI track. In October, the company completed the acquisition of Tiandon Data for HK$977 million. Tiandon Data is one of China's first-tier AI computing construction and operations operators, with nearly 200 corporate clients, including major cloud service providers and leading AI companies. In just the second half of 2025, the AI computing power cloud service contract brought in Tiandon Data an additional management of over 12,000 GPU AI computing power, generating stable and continuous income. Tiandon Data will create a core growth curve for Yuegangwan Holdings. According to disclosures, the target's revenue will increase from HK$50 million in 2022 to HK$230 million in 2024, with a compound growth rate of 114.5%. In the first quarter of 2025 alone, the order backlog size will exceed HK$10 billion. The independently developed Quantum Moment Computing Cloud Service Scheduling Platform by the target has been officially launched, serving clients in various industries such as education research, AI biopharmaceuticals, AIGC content production, and autonomous driving, providing strong support for the smart upgrading of the AI industry, with commercial opportunities driving continued high growth in performance. Furthermore, Tiandon Data and Yuegangwan Holdings complement each other's strengths, and industry synergy will accelerate development. The AI intelligent computing model deepened by Tiandon Data perfectly matches the urban development capabilities accumulated by Yuegangwan, transforming idle factories and land resources into high-performance intelligent computing centers and AI computing infrastructure, creating an integrated service system of "computing power + energy + space", fundamentally changing the profit logic of traditional industry operations. These three major events are not isolated and indicate the future development path of Yuegangwan Holdings. While leaving quality land resources in traditional businesses, unloading debt burdens to leave ample cash flow, AI-related businesses are the main focus. Most of the funds raised from this placement will be used for the development of new tracks. AI and related fields have become one of the hottest investment themes today, and the innovative model of "computing power + urban development" is expected to reconstruct the company's valuation logic. In the capital market, the company's valuation is attractive, with investors trusting in its potential. The company has also received positive outlooks from several securities investment banks. For example, Northeast released a research report stating that Yuegangwan Holdings successfully entered the AI intelligent computing track through acquisitions, achieving a strategic upgrade from a traditional real estate developer to a "digital ecosystem operator". Leveraging the green and intelligent computing model of the new business with existing urban resources is expected to create a diversified revenue structure and reshape its valuation. On December 3rd, the company won the "Most Valuable Artificial Intelligence Company" award at the 10th GMTEight Listing Company selection. Overall, the placement by Yuegangwan Holdings was positively subscribed by its founders and state-owned enterprise investment institutions, with Tiandon Data as the core, positioning itself comprehensively in the AI and related tracks for the future. Currently, the company's valuation is not high, and with the high growth of Tiandon Data, the potential for its valuation in 2025 is significant. Coupled with the synergy of high-quality land resources, the valuation is expected to rise to even higher levels.