VSTECS (ASX: 00856) saw its share price jump more than 12% during the morning session, reaching a new all-time high of HK$12.36.

At the time of writing, the stock was up 12.88%, trading at HK$12.36.

The rally follows recent corporate announcements. On May 22nd, Tongyou Technology and VSTECS jointly hosted a "Domestic Storage Partner Creation Conference" in Guangzhou.

The event focused on the development opportunities for enterprise-level storage driven by large AI models and discussed strategies for expanding the domestic storage market.

Tongyou Technology stated in response to investor inquiries on an interactive platform that VSTECS is a key partner in its channel sales network.

Following the signing of the cooperation agreement, Tongyou has officially appointed VSTECS as its national sales general agent.

In a March annual results briefing, VSTECS Chairman and CEO Li Jialin commented on the company's storage business.

He noted that the company's main product in the storage sector is hard drives, which are currently in a state of supply shortage, eliminating the need for price wars and supporting higher gross margins.

More significantly, this situation has opened the door to the B2B market.

He explained that the company's storage products were previously mainly for the consumer market, and entering the supply chains of large manufacturers in the B2B sector was difficult due to long testing cycles.

The market shortage, however, has allowed VSTECS to enter the supply chains of major companies like Alibaba, Tencent, and Kuaishou over the past two to three months.

Li Jialin concluded that the price increases in the market have effectively helped the company acquire a significant number of new clients.