On the evening of July 20, Jiechuang Intelligence (301248.SZ) announced plans to purchase IT equipment and spare parts from multiple suppliers, with a total investment not exceeding 10 billion yuan, as part of its strategic push into artificial intelligence and business transformation.

Securities Star observed that, despite a significant downturn in the industry's digital and intelligent solution sector, the company continues to ramp up investments in AI and cloud computing businesses. However, due to limited internal cash flow to fund the construction of computing power clusters, Jiechuang Intelligence has resorted to borrowing, resulting in a rapid debt increase and a sharp rise in its asset-liability ratio.

Not only that, but to keep advancing the construction and investment in intelligent computing cloud clusters, the company saw a substantial surge in interest expenses and depreciation costs in the first half of the year. This led to a year-over-year shift from profit to loss in its net profit attributable to shareholders. To ease financial pressure and further scale up its computing power, the company has launched a private placement plan to raise nearly 2 billion yuan. Nevertheless, the additional depreciation and amortization from the funded projects could further strain its profitability.

01. Declining Revenue from Traditional Businesses, Persistent Non-Recurring Losses

Public information reveals that Jiechuang Intelligence specializes in artificial intelligence products and application solutions, with business operations spanning three key segments: digital and intelligent solutions, AI + cloud computing, and AI + security.

Securities Star noted that amid the ongoing contraction of the industry's digital and intelligent solution business, the company has shifted its focus to "AI + cloud computing" and "AI + security" to accelerate the transformation and upgrading of its digital and intelligent solution business.

Specifically, in 2024, impacted by reduced digital investments from government and enterprise clients and heightened competition, the company's digital and intelligent solution business shrank, with revenue reaching 534 million yuan, a 16.8% year-over-year decline, accounting for 82.92% of total revenue for the period. Consequently, the company's overall revenue for the year fell by 24.47% year-over-year to 644 million yuan.

In 2025, revenue from the digital and intelligent solution business further declined to 420 million yuan, a 21.35% year-over-year decrease. This was driven by both the gradual shrinkage of existing industry demand and the company's proactive adjustment of its business focus. During the same period, the company's two major businesses, "AI + cloud computing" and "AI + security," experienced rapid growth, with revenues of 127 million yuan and 291 million yuan, respectively, both achieving significant year-over-year increases.

Since 2026, Jiechuang Intelligence has continued to advance its AI transformation and upgrading strategy, with a focus on the computing power infrastructure market. The semi-annual performance forecast showed that the company's "AI + cloud computing" business grew to 204 million yuan in the first half of the year, driving a year-over-year increase in operating revenue. However, due to substantial investments in building intelligent computing cloud clusters and developing intelligent computing cloud services, the company's interest expenses and depreciation costs rose significantly year-over-year, resulting in a loss.

In the first half of 2026, the company's EBIT (Earnings Before Interest and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) were 44 million yuan and 141 million yuan, respectively, representing year-over-year increases of 130% and 340%. Against this backdrop, the company's net profit attributable to shareholders, both before and after excluding non-recurring items, shifted from profit to loss year-over-year, with losses ranging from 2.2 million yuan to 4.4 million yuan for the net profit attributable to shareholders and from 6.5 million yuan to 8.7 million yuan for the net profit after excluding non-recurring items.

Securities Star noted that the growth in credit impairment losses further squeezed its profit margins. Using the first-quarter report as a reference, the company increased its provision for bad debts for certain clients and long-aged projects based on the principle of prudence, resulting in a 365.1% year-over-year increase in expected credit losses, amounting to 17.2227 million yuan.

Over the longer term, Jiechuang Intelligence's profitability has been volatile in recent years. From 2023 to 2025, the company's net profit attributable to shareholders was 6.6203 million yuan, -79.9769 million yuan, and 13.6735 million yuan, respectively, with a loss reported in 2024.

Further analysis revealed that the company's profitability was primarily bolstered by non-recurring items such as government subsidies, changes in gains or losses from holding and disposing of trading financial assets and liabilities, or investment income. Consequently, the company's net profit after excluding non-recurring items has reported losses for three consecutive years, amounting to -11.4241 million yuan, -92.0074 million yuan, and -585,400 yuan, respectively, indicating concerning profitability in its core business.

02. Interest-Bearing Debt Doubles, Private Placement Sought for Relief

To capitalize on the surge in demand for intelligent computing, Jiechuang Intelligence is accelerating the construction of intelligent computing clusters.

In January 2026, the company announced plans to procure IT equipment worth no more than 4 billion yuan; in July 2026, it planned to procure IT equipment and spare parts worth no more than 10 billion yuan. Currently, the company has established or is constructing multiple computing power clusters in regions such as South China, North China, and East China, providing computing power services to users including large model manufacturers and internet companies.

Securities Star noted that to support the large-scale construction of new intelligent computing clusters, Jiechuang Intelligence's net cash flow from investing activities in the first quarter was -1.791 billion yuan, shifting from positive to negative year-over-year, while its net cash flow from operating activities for the same period was 122 million yuan.

Due to limited internal cash flow to cover equipment procurement and computing power cluster construction expenses, the company has relied on external borrowing to bridge the funding gap. It is reported that the company has requested authorization from its shareholders to apply for credit lines totaling 20 billion yuan and has secured credit lines of nearly 10 billion yuan from multiple banks and non-bank financial institutions. Consequently, the company's net cash flow from financing activities in the first quarter reached 2.414 billion yuan, a significant year-over-year increase.

Jiechuang Intelligence's debt level has risen accordingly, with its interest-bearing debt surging from 1.176 billion yuan at the beginning of the year to 2.998 billion yuan by the end of the first quarter, representing a 154.93% increase; its asset-liability ratio increased from 53.37% to 73.77%. Meanwhile, the company's short-term debt repayment capacity is under pressure, with monetary funds of 1.28 billion yuan and short-term borrowings and non-current liabilities due within one year totaling 1.553 billion yuan, indicating that its on-hand funds are insufficient to cover its short-term debts.

The construction of intelligent computing clusters has not only driven up the company's debt but also led to a significant increase in inventory levels. As of the end of the first quarter of 2026, the company's inventory amount reached 473 million yuan, a 69.42% increase from the beginning of the period, primarily due to continued procurement of IT equipment and spare parts as part of its artificial intelligence strategy.

Securities Star noted that to ease financial pressure and further scale up its highly reliable and secure intelligent computing power services, Jiechuang Intelligence has initiated a new round of financing plans.

The private placement proposal indicates that the company plans to issue A-shares to no more than 35 specific investors, raising no more than 1.965 billion yuan, primarily for the construction of an intelligent computing cloud service center project (hereinafter referred to as Project One), an AI + security equipment research and development and industrialization construction project (hereinafter referred to as Project Two), and supplementary working capital.

Among them, Project One will receive 1.48 billion yuan of the raised funds, accounting for 75.32% of the total funding, making it the key project of this private placement. The project aims to meet the demand for AI computing power infrastructure and AI industry applications by building an intelligent computing cloud service platform to serve the scenario application needs of vertical industries for technologies such as cloud computing and large models; Project Two primarily focuses on the research, development, and production of equipment and systems such as monomeric embodied intelligence and security defense systems for public safety as the core scenario.

It is worth noting that after the completion of the funded investment projects, the company's asset scale will increase significantly, and the corresponding rise in depreciation and amortization will increase the company's costs or expenses, which will impact its profitability at that time. (This article was first published by Securities Star, Author | Li Ruohan)

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