Is this for real?

Imagine a property penny stock, once languishing with daily trading volumes below HK$300,000 and virtually forgotten by the market, suddenly metamorphosing into Hong Kong stocks' most formidable AI computing power dynamo.

In early 2025, Yue Gang Wan Intelligence Computing's stock languished at a mere HK$0.137. By year-end, it had skyrocketed to HK$5.17, marking a staggering 36-fold surge in just 12 months.

But the ascent didn't stop there. By May 2026, the stock price peaked at an astonishing HK$19.85, representing a 143-fold increase from its nadir!

From a moribund property developer to an AI computing power sensation, this transformation ranks among China's most remarkable capital operation success stories in recent years, earning it the moniker of the 'Chinese version of CoreWeave.'

Today, Silicon-Based Guy delves into how this centuple wealth legend was forged in a mere year.

/ 01 / Divesting Real Estate Ventures

Cast your mind back to Yue Gang Wan Holdings in 2024, and it's hard to envision its later metamorphosis into an AI stock market darling.

That year, the company's contracted sales plummeted 46% year-on-year to a paltry RMB 1.157 billion, accompanied by a net attributable loss of RMB 1.835 billion.

The balance sheet painted an even grimmer picture.

By the end of 2024, Yue Gang Wan boasted total assets of RMB 12.658 billion but was saddled with total liabilities of RMB 12.558 billion.

In essence, behind over RMB 10 billion in assets, shareholders' true net assets amounted to a mere RMB 1 billion.

Among these liabilities, interest-bearing debts such as bank loans and senior notes totaled RMB 5.728 billion, with annual interest expenses of RMB 243 million, while cash on hand stood at a meager RMB 13.06 million.

This left the company in a precarious position: abundant assets but scant liquidity, with properties becoming increasingly difficult to offload.

To navigate these turbulent waters, Yue Gang Wan embarked on a three-pronged strategy in 2025:

The first move was asset sales.

In the first half of 2025, Yue Gang Wan successively offloaded two real estate subsidiaries, Zhuoying and Faith Channel, for RMB 130 million and RMB 50 million, respectively. These entities held nearly RMB 5.6 billion in assets but carried approximately RMB 5.7 billion in liabilities.

Post-transaction, a significant chunk of real estate assets, along with their accompanying debts, were excised from the listed company's balance sheet. Zhuoying's buyer was a BVI asset management company controlled by Zhao Chuan, general manager of Guotai Xinda.

The second, and more pivotal, action was tackling U.S. dollar-denominated debt.

Yue Gang Wan's largest interest-bearing liability was a RMB 3.25 billion (US$439 million) offshore senior note due in 2029.

How substantial was this debt? It constituted over half of the company's total interest-bearing liabilities. Failure to address this U.S. dollar debt would render any property sales futile in rescuing the balance sheet.

Ultimately, Yue Gang Wan negotiated a bold restructuring plan with creditors: creditors agreed to accept redemption at 55% of the principal value.

What does this entail? A direct 45% haircut on the principal.

Moreover, the remaining portion wasn't primarily settled in cash but largely through zero-coupon mandatory convertible bonds, with historical unpaid interest waived.

In essence, debt that originally demanded hard cash repayment was transformed into future equity dilution.

The third action was recognizing losses. In 2025, the company booked a one-time inventory impairment of RMB 668 million.

The impact of these three maneuvers was immediate.

At the end of 2024, Yue Gang Wan had total assets of RMB 12.658 billion and total liabilities of RMB 12.558 billion. By the end of 2025, total assets had shrunk to RMB 5.860 billion, total liabilities to RMB 2.805 billion, and net assets had rebounded from RMB 100 million to RMB 3.055 billion.

According to company disclosures, the asset-liability ratio also plummeted from 45.3% to 7.2%.

In just one year, Yue Gang Wan had thoroughly overhauled its 'shell.'

Then the question arose: What would Yue Gang Wan fill this cleaned-up shell with?

The answer: AI computing power.

/ 02 / Infusing Computing Power Assets

In October 2025, Yue Gang Wan announced the acquisition of Shenzhen Tiandon Data for HK$976.5 million.

In this deal, Yue Gang Wan paid almost entirely in stock, issuing 310 million shares at HK$3.15 each. Post-transaction, the seller, Champion Road, held 27.58% of the enlarged share capital.

Tiandon Data injected its assets into the listed company, while its original shareholders became major stakeholders in Yue Gang Wan.

So, what exactly is Tiandon Data?

In layman's terms, it operates AI computing power infrastructure. Its business model mirrors that of AI cloud infrastructure firms like CoreWeave and Nebius:

It procures GPUs, constructs data centers, creates clusters, and organizes scattered computing power into large-scale computational resources for clients engaged in large-scale model training and inference.

Public information reveals that Tiandon Data primarily operates NVIDIA H800, H100, RTX 4090, and other GPU servers while also developing multi-source heterogeneous computing power compatible with domestic chips like Huawei's and Cambricon's.

Leveraging this computing power, Tiandon Data's revenue exploded. In 2025, it achieved revenue of RMB 2.025 billion, up nearly 7.6 times year-on-year, with a net attributable profit of RMB 207 million.

Tiandon Data officially entered Yue Gang Wan's financial statements only on October 23, 2025. In other words, it contributed just over two months of performance to Yue Gang Wan for the full year.

Yet, in those two months alone, Tiandon contributed RMB 617 million in revenue and RMB 177 million in gross profit. Among these, core computing power service revenue reached RMB 528 million, with a gross profit of RMB 209 million and a gross margin of nearly 40%.

Why would such a profitable company agree to be injected into a listed company that had just cleaned up its real estate debts?

Transaction documents reveal that behind Champion Road, Tiandon's founder Zhong Junhua held a 35.2% stake, while Yue Gang Wan's chairman Luo Jieping held an 18% stake. Before the acquisition, Yue Gang Wan's controlling shareholder, China GBA Holdings, held 50.94% of the listed company, with its ultimate beneficial owner being Luo Jieping's spouse, Zeng Yan.

In essence, the major shareholder injected a high-quality asset incubated outside the listed company back into its controlled platform.

The major shareholder first nurtured a rapidly growing AI computing power company outside the listed company while massively addressing the listed company's real estate debts, loss-making assets, and impairment risks. Once the shell was cleaned up, Tiandon was injected back into the listed company through share issuance.

In just one year, a property company with only RMB 100 million in net assets and RMB 13.06 million in cash transformed into the hottest super bull stock in the capital market.

/ 03 / Yue Gang Wan's Greatest Asset: Capital Raising Prowess

Of course, injecting AI computing power assets into the listed company was merely the first step.

Like the real estate business, the most critical capability in the computing power business is capital raising. This happens to be Yue Gang Wan's forte.

To raise capital, Yue Gang Wan employed three strategies.

The first was financial leasing. Simply put, the computing power company acquires equipment first, with leasing companies providing funds, and future cash flows generated by the equipment used to repay the debt gradually.

At the end of June 2025, before Tiandon was consolidated, Yue Gang Wan's lease liabilities stood at just RMB 306,000. By October, when acquiring Tiandon, the lease liabilities brought in by the Tiandon system reached approximately RMB 2.12 billion.

By 2026, this model accelerated significantly.

Just with Pu Yin Financial Leasing, three disclosed sale-and-leaseback transactions were revealed: RMB 395 million in June, RMB 790 million in July, and RMB 1.687 billion in August. Together, these amounted to RMB 2.872 billion.

While leveraging financial leasing, Yue Gang Wan also continuously raised capital in the equity market as its stock price soared.

From December 2025 to June 2026, Yue Gang Wan conducted three rounds of share placements, with placement prices rising from HK$5.5 to HK$11.75, and corresponding net proceeds increasing from HK$108 million to HK$280 million.

In total, the company raised approximately HK$506 million in cash from the capital market across these three rounds.

Beyond the secondary market, Yue Gang Wan also secured a more critical shareholder in the primary market: state-owned capital.

In January 2026, Shenzhen Futian Capital invested RMB 800 million to acquire a 40% stake in Hongce Data, Yue Gang Wan's computing power project subsidiary. The announcement explicitly stated that the funds would be used to establish a new project company in Futian District, secure new computing power service orders, and optimize related contract performance, renewals, and financing.

Of course, state-owned capital didn't come without conditions. Futian Capital set stringent performance benchmarks for Hongce:

Within the first 11 months after investment, revenue must reach at least RMB 3 billion, with positive operating cash flow;

Over 23 months, cumulative revenue must reach at least RMB 6 billion, with cumulative core net profit (excluding non-recurring items) of at least RMB 1.2 billion;

Over 35 months, cumulative revenue must reach at least RMB 9 billion, with cumulative core net profit of at least RMB 2 billion.

Failure to meet these targets would trigger share buybacks.

The third layer was order credit. This was the most critical link in the entire capital flywheel.

By the end of 2025, Yue Gang Wan had secured over RMB 15 billion in computing power orders. By the first half of 2026, the company had added over RMB 15 billion in intention orders (tentative orders), with over 95% being five-year long-term contracts.

As long-term orders increased, Yue Gang Wan's access to capital also grew. According to the company's latest disclosure, by June 2026, Yue Gang Wan had secured over RMB 30 billion in intentional credit (tentative credit lines) from financial institutions.

Here, the entire logic clicked into place.

First, use share placements and financial leasing to acquire more GPUs. As GPU capacity expands, secure more long-term orders. Long-term orders, in turn, enhance financing capabilities.

More financing allows for greater business expansion, which drives higher market valuations. Higher stock prices enable even more capital to be raised. Thus, a capital flywheel was set in motion.

While this model has proven highly successful, it bears an uncanny resemblance to familiar patterns.

By Yuan Yuan