Envision Green (01783) is making remarkably swift progress in its AI computing business. On the evening of September 10, the company announced that its indirect wholly-owned subsidiary, Shanghai Youfu Cloud Computing Co., Ltd. (Youfu Cloud), will purchase over 100 high-performance servers from seller Shanghai Shunquan Technology Co., Ltd. (Shanghai Shunquan) for a total consideration of RMB 380 million.
This follows an earlier announcement on August 6, when Envision Green revealed that Youfu Cloud would acquire more than 400 high-performance servers from Shanghai Shunquan for RMB 1.2884 billion. The additional order just one month later not only underscores strong customer demand for Youfu Cloud, but also validates the efficient execution of its "sales-driven procurement" model, signaling that Youfu Cloud's computing capacity is expanding at an accelerated pace.
The latest announcement regarding the additional purchase of over 100 high-performance servers also disclosed two critically important details. First, the servers being acquired by Youfu Cloud are configured with "8 processing units, approximately 17,000 CUDA cores, and 141GB of memory" — a specification combination that pinpoints the GPU model, which is among the most sought-after high-end chips in the current AI computing market. Moreover, thanks to the bulk order size and the qualifications of its partner, the actual transaction price is below the public market quote, similar to the per-unit price achieved in the August purchase of over 400 servers. This means that within less than two months, Youfu Cloud has secured two batches totaling over 500 high-end performance servers at below-market prices.
Second, Envision Green directly disclosed in the announcement that its smart computing business currently provides 1.5 megawatts of computing power to customers, with contractual commitments in place to supply an additional 7.0 megawatts. The company expects that, subject to its ability to procure the necessary computing hardware and sign contracts with suitable customers, its available computing capacity in the near term will increase to 16.0 megawatts. This indicates that Envision Green's smart computing business will continue to follow the "lock in contracts first, then allocate hardware" approach: server procurement is initiated only after securing binding commitments from customers, with order-driven capacity expansion reducing inventory and delivery mismatch risks. The 1.5 megawatts of computing power currently in operation serves as strong evidence of the efficient execution of this model.
The disclosure that near-term available computing capacity can rise to 16.0 megawatts suggests that the company may soon sign new contracts for at least an additional 7.5 megawatts. This 16-megawatt figure has also outlined a clear and certain return expectation for the capital markets. Industry insiders project that, based on the GPU models of the high-performance servers purchased by Youfu Cloud and the exceptionally high utilization rate enabled by the "sales-driven procurement" model, the near-term 16 megawatts of computing capacity could generate nearly RMB 1 billion in smart computing revenue for Envision Green in the second half of fiscal year 2027 (the six-month period from September 30 to March 31).
Notably, RMB 1 billion in revenue over six months is equivalent to approximately 40% of Envision Green's total revenue of HKD 2.462 billion for the full fiscal year 2026 (the 12 months ending March 31). Moreover, just the near-term 16 megawatts of computing capacity is expected to bring in at least RMB 2 billion in revenue for fiscal year 2028. If the company's available computing capacity continues to expand, the smart computing business is poised to become Envision Green's largest business segment as early as next year, serving as the core growth engine driving the company's high-speed development.
Looking back at Envision Green's foray into the AI computing sector, one cannot help but admire the company's strong execution capabilities and resource integration prowess as a cross-industry player. Since announcing its entry into the AI computing track in June, the company signed a five-year service contract worth RMB 2.4 billion in July, purchased over 400 high-performance servers and brought in MiniMax as an investor to complete supporting capital raising in August, and added over 100 high-performance servers in September while clearly outlining its near-term growth expectations of 16 megawatts. With each month bringing new milestones and steady progress, Envision Green's smart computing business is visibly transitioning from blueprint to reality.
From the capital market's perspective, Envision Green's current share price has yet to reflect the strong growth potential of the company driven by its smart computing business. However, price will ultimately revert to value, and as order deliveries and revenue recognition materialize quarter by quarter, the market will eventually reprice the company's true worth.