Guangdong Hec Technology Holding Co.,Ltd. (600673.SH), currently under a trading halt, is orchestrating a major capital maneuver in the AI era. The company recently announced plans to acquire control of Yichang Dongshu Yihao Investment Co., Ltd. (Dongshu Yihao) through a share issuance and raise supporting funds. Trading was suspended starting February 24, with an expected resumption by March 10.
This move comes just over a month after its controlling shareholder led a 28 billion yuan cash acquisition of Qinhuai Data's China operations. On March 2, Hec Technology disclosed progress, indicating active communication and negotiation of transaction details, though implementation remains uncertain.
The strategic shift from minority investor to controlling stakeholder reveals the capital ambitions of 39-year-old Zhang Yushuai, who recently succeeded as controller and was crowned Dongguan's new richest person. Before the halt, Hec Technology's shares traded at 37.8 yuan apiece, valuing the company at 113.8 billion yuan.
The 28 billion yuan acquisition of Qinhuai Data involved 19 institutional investors. Established in July 2025, Dongshu Yihao served as the special purpose vehicle for the deal. Initially, Hec Technology participated as a minority investor, contributing 3.45 billion yuan for a 30% stake.
By early February 2026, Dongshu Yihao's shareholder structure expanded to 19 entities, including six state-backed investors, two listed companies, and 11 private equity firms. Notably, Shanghai Yunfeng New Venture Capital Management Co., Ltd., backed by Jack Ma, joined the consortium, adding intrigue to the deal.
The dispersed ownership complicates Hec Technology's bid for control. Analysts suggest that recent investors are unlikely to sell quickly unless offered substantial premiums, potentially increasing acquisition costs. Meanwhile, high share pledges by major shareholders indicate liquidity pressures. Hec Technology's parent and its affiliates have pledged 78.24% of their combined holdings.
The company itself faces financial strain, with 5.5 billion yuan in cash against 8.8 billion yuan in short-term borrowings and 1.96 billion yuan in current liabilities. While revenue grew 23.56% year-over-year to 10.97 billion yuan in the first three quarters of 2025, and net profit surged 189.8%, operating cash flow lagged at 486 million yuan. Debt ratios climbed to 65.52%.
The acquisition target, Qinhuai Data, is a leading hyperscale computing infrastructure operator and a key supplier to ByteDance. With 782MW of IT capacity, it ranks second among Chinese IDC service providers.
Zhang Yushuai, who took over following his father's passing in 2020, has aggressively pivoted toward AI and computing. His strategic moves throughout 2025—including ventures in embodied intelligence, liquid cooling, and photonic chips—culminated in the Qinhuai Data play. Investors have responded positively, driving Hec Technology's shares up 98.67% in 2025 and 38.76% in early 2026.
Securing control of Qinhuai Data could mark a defining moment for Zhang, transitioning from inheritor to industry shaper.