City Telecom: Subsidiary Signs Nearly 2.709 Billion Yuan Data Center Service Contract

City Square Hong Kong announced that its subsidiary, City Square Hong Kong Cloud Computing Limited, has signed an agreement with Company X for the Shanghai-Tai Smart Cloud Valley Digital Technology Industrial Park - Data Center project. The contract will take effect on November 1, 2026, with a cooperation period of 6 years, and can be renewed twice. The first phase is expected to deliver 1100 high-power server cabinets for a total amount not exceeding 0.903 billion yuan; the second phase is expected to deliver 2200 cabinets for a total amount not exceeding 1.806 billion yuan, with revenue distributed according to the placement situation. However, the contract entails uncertainties related to performance and financial impacts, weak enforceability of breach clauses, and risks related to business commitment breaches.