ENVISION GREEN (01783) achieves a major breakthrough in acquisition matters; the performance commitment of the acquisition target is fulfilled ahead of schedule, providing substantial support for the value of the new AI track.

On July 31, ENVISION GREEN (01783) announced that the operating company it intends to acquire has signed a binding service agreement with a major Chinese technology firm. This service contract is expected to generate additional annual EBITDA of no less than RMB 480 million over the five-year term of the agreement, with a total contract value of no less than RMB 2.4 billion. This move indicates that the key financial condition for the third payment in the acquisition deal has been met, with the profitability of the target company verified ahead of schedule, providing substantial support for the companys strategic transformation into the AI computing infrastructure sector. As previously disclosed by the company, ENVISION GREEN plans to acquire the target equity from the seller Yovole Cayman, specifically the entire issued share capital of the target company YV CLOUD Limited and the operating company Shanghai Youfu Cloud Computing Co., Ltd., with a maximum consideration not exceeding HKD 2.5 billion. The target group primarily engages in providing cloud computing services and currently offers these services, holding the necessary licenses to do so. The operating company has established an extensive network and connections in the internet data center and cloud computing sectors and is qualified to purchase high-performance GPUs required for its cloud computing services. As a condition for the third payment, the operating company must (among other requirements) obtain a binding service agreement or cooperation agreement, which should generate additional annual EBITDA of no less than RMB 480 million in that fiscal year, with a total contract value of no less than RMB 2.4 billion during the term of such agreement (targets for EBITDA and contract value). The signing of this substantial computing power lease agreement directly meets the financial prerequisites for the payment of the third acquisition installment, fully substantiating the long-term investment value of this computing asset acquisition from a business perspective. Overall, securing this major contract is not only an important milestone in ENVISION GREEN's acquisition deal but also marks a significant step forward in the company's transformation into AI computing service operations. As subsequent acquisition conditions are completed, ENVISION GREEN is expected to launch full lifecycle operations within the AI computing industry, achieving a synergistic development of green energy and digital computing as dual core businesses, further opening up valuation potential.