Sunshine Oil (02012) saw its share price climb more than 30% during Tuesday's trading session, with the stock last changing hands at HK$0.20, representing a 31.58% gain and turnover of HK$3.36 million.

The sharp rally follows the company's announcement on the evening of August 23 that its wholly-owned subsidiary, Sangxiang Petrochemical (Shanghai), had joined forces with five joint venture partners to establish a new entity in Qinhuangdao City, Hebei Province — the Geo-Energy Intelligent Computing Artificial Intelligence (Beidaihe) Co., Ltd. Sangxiang Petrochemical holds a 40% equity stake in the new venture.

The joint project is designed to construct an artificial intelligence computing center with a substantial capacity of 6,000P. According to the company's official statement, the initiative has received strong backing from the Beidaihe government, which includes support for approval processes, licensing, and related ancillary services. Furthermore, an enterprise controlled by the local government is expected to take an equity position in the project at a later stage.

Management noted that once the facility is fully operational, it is anticipated to transform Sunshine Oil's current business model, which has historically relied on a single revenue stream. The project is expected to introduce new profit growth opportunities while laying a solid foundation for the company's strategic entry into the artificial intelligence sector.