Shenyang Public Development Co., Ltd. (00747) announced that the Company continues to seek suitable opportunities in China's infrastructure construction business. However, due to the slow pace of domestic economic recovery, government expenditure on infrastructure construction is expected to remain constrained. The Company continues to explore suitable infrastructure projects that align with national policies.
Simultaneously, the Company is closely monitoring national policy directions and actively engaging with strategic emerging industries identified by the state. While consolidating its existing core businesses, the Company is proactively expanding into new business scenarios with multiple formats and levels. The Company has initiated preliminary contacts and feasibility assessments in the software and information technology services sector.
The Company has established a team comprising management experts with extensive experience in IT solutions, artificial intelligence, the Internet of Things, and smart communities to develop the Group's edge computing infrastructure and services. As of the date of this announcement, the Group has commenced its edge computing infrastructure and services business, which includes procuring network bandwidth resources, coordinating edge node deployment with infrastructure site suppliers, and integrating and planning software and hardware systems.
The Group has entered into a service agreement with one customer with a contract value of RMB 24 million; the service period runs until January 21, 2027, and is extendable but not beyond December 31, 2030. Concurrently, the Group is also in discussions with other potential clients.
Leveraging its experience in the infrastructure sector, the Group will provide edge computing infrastructure and services covering equipment deployment, system commissioning, software platform integration, usage statistics and billing settlements, along with ongoing operation and maintenance services for both software and hardware systems. These services are expected to help customers enhance network performance, reduce operational costs, and improve network service availability.
The Company believes that expanding into the edge computing infrastructure and services sector not only aligns with the Group's existing infrastructure construction and property development businesses but also complements them. The Group's experience in infrastructure planning, site coordination, project management, construction execution, and long-term operations provides a solid foundation for deploying and operating edge computing facilities, which similarly require physical infrastructure, network connectivity, and continuous maintenance.
Although the Group will continue to pursue development opportunities in its infrastructure construction and property development, property investment and leasing, and property management businesses, the persistent downturn in China's property market has prompted the Group to adopt a more cautious and diversified development strategy. The Group will prudently explore opportunities in edge computing infrastructure and services, utilizing its management team's expertise and existing infrastructure-related experience to expand its business scope and diversify its revenue streams, aiming to foster long-term sustainable growth through the careful implementation of a diversification strategy.