Recently, Xingyun Technology disclosed that its wholly-owned subsidiary, Changsha Xiangshu Cloud, has inked an 'Intelligent Computing Resource Leasing Service Contract' with a VE customer. This contract spans a five-year service term and encompasses a total tax-inclusive value of 872 million yuan. When combined with previously announced orders, Xingyun Technology's current order backlog has surged to 16.88 billion yuan.

According to available information, Xingyun Technology's primary business strategy revolves around a dual focus on 'cross-border digital trade (AI applications) + AI computing power,' with its core emphasis on AI computing power infrastructure, positioning itself as a 'Token Factory'.

The 872 million yuan computing power order represents the total tax-inclusive sum over the five-year period. The contract stipulates a bifurcated billing schedule: the initial 36 months followed by the subsequent 24 months. During the investor exchange in September, the company indicated that if the 16 billion yuan long-term orders from four customers were fully leased, the annual rent would amount to 3.267 billion yuan for the first three years and 3.102 billion yuan for the last two years, with the annualized rate in the first period being approximately 5% higher than the second. Based on this ratio, for the current order, the annual tax-inclusive rent would be approximately 178 million yuan for the first three years and around 169 million yuan for the last two years.

In terms of company scale, Xingyun Technology reported a revenue of 254 million yuan in the first half of the year, with the AI computing power business contributing 67.1571 million yuan. In August, the first batch of equipment from three customers (V, VB, VC) commenced leasing, with revenue recognized in the same month. If this order operates at full capacity, the annual revenue would be nearly 2.5 times the computing power revenue of the first half of the year. Following the signing of this order, the total long-term orders in hand rose from 16.004 billion yuan on September 8 to approximately 16.88 billion yuan.

Under the contract terms, settlement between the two parties is conducted on a monthly prepayment basis, with one month's rent serving as a deposit. The service period is calculated in calendar months, with the company receiving payment prior to providing services and holding a one-month deposit, thereby minimizing the occupation of its own funds. Regarding breach of contract, the announcement specifies that neither party may unilaterally adjust prices during the validity period, and the breaching party must compensate 100% of the service fees for the remaining service period.

The most significant concern with a five-year contract is the potential for the customer to terminate the lease prematurely. This clause raises the exit cost to nearly the full contract amount. It is also bidirectional; if delivery fails or maintenance does not meet standards, the compensation ratio applies equally.

Regarding funding sources, on September 15, the company increased its server procurement budget for 2026 from 7 billion yuan to 20 billion yuan, citing rapid business expansion, pending shareholder approval. As of the end of June, the company's monetary funds stood at 642 million yuan, down 235 million yuan from the beginning of the year. The gap between 20 billion yuan and 642 million yuan exceeds 19 billion yuan. The company's stated funding sources include its own funds and self-raised funds, with self-raised funds encompassing financing lease payments, indicating that the majority will rely on borrowing.

However, the situation of the actual controller introduces uncertainty to the financing aspect. Wang Wei's 91.85 million shares and Tianxingyun's 25.64 million shares, totaling 117 million shares or 12.65% of the total share capital, have been fully frozen due to pre-litigation preservation from a contractual dispute stemming from the 2024 bankruptcy reorganization. The company asserts that this does not affect operations, but the actual controller's ability to provide joint guarantees will be diminished, potentially impacting credit approval efficiency. In March 2026, the Hunan Securities Regulatory Bureau imposed a total of 10 million yuan in fines on the relevant responsible parties for information disclosure issues.

Given that financing procurement is essential for fulfilling orders, the uncertainties surrounding financing warrant close attention.

A noteworthy detail regarding the computing power order is the significant gap between signing the framework agreement and actual execution. On July 20, the company signed a master framework agreement with state-owned supplier SA for 128 high-end computing power servers. By September 22, a cumulative total of 75 servers had been signed, corresponding to an amount of approximately 753 million yuan, leaving 53 servers still at the cooperation intention stage, subject to further negotiations. Additionally, the 16.88 billion yuan in orders in hand is also at the framework agreement stage.

From the perspective of current order execution, Xingyun Technology is generally progressing smoothly. In August, the first batch of equipment from three customers commenced leasing, with revenue recognized in the same month, representing the most critical link in the entire process, as the funds have already been recorded. The server procurement for the VE order has been completed and is currently undergoing acceptance. The company anticipates completing delivery before September 30, with the service period commencing the day after the computing power resources pass testing, lasting a total of 60 months.

Subsequently, attention should be focused on the revenue category for the computing power business in the third-quarter report and the voting results of the shareholder meeting regarding the 20 billion yuan procurement budget. These two figures are more indicative than the contract amounts.