HK Stock Market Move | ENVISION GREEN (01783) rose over 5% during trading hours as the company made a significant breakthrough in its acquisition matters, gaining substantial support for its strategic transformation in the AI computing power infrastructure sector.

ENVISION GREEN (01783) rose over 5% during trading, and as of the time of writing, it is up 4.04%, trading at HKD 4.64, with a transaction volume of HKD 20.414 million. In recent news, ENVISION GREEN announced that the operating company it intends to acquire has signed a binding service agreement with a major Chinese technology company. This service contract is expected to generate additional annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of no less than RMB 480 million over the five-year term of the agreement, with a total contract value of not less than RMB 2.4 billion. This move indicates that the key financial condition for the third payment in the acquisition transaction has been met, and the profitability of the target company has been validated ahead of schedule, providing substantial support for the company's strategic transition to the AI computing infrastructure sector. According to previous disclosures by the company, ENVISION GREEN intends to acquire the target equity from the seller Yovole Cayman (i.e., all the issued share capital of the target company YV CLOUD Limited and the operating company Shanghai Youfu Cloud Computing Co., Ltd.), with the maximum consideration not exceeding HKD 2.5 billion. The target group mainly engages in providing cloud computing services, and it currently offers such services, holding the necessary licenses for providing these services. The operating company has established an extensive network and connections in the internet data center and cloud computing sector and is qualified to procure high-performance GPUs required for its cloud computing services.