Shanghai Chengdi Constr Co

Chengdi Xiangjiang announced on September 9 that its wholly owned subsidiary Xiangjiang System Engineering and Beijing De'ang have mutually agreed to terminate a cloud computing data center construction general contracting contract worth 403 million yuan. The contract originally had a construction period from July 1, 2024 to January 31, 2025. Due to intensifying industry competition and rising raw material prices, the original contract price is no longer feasible, and neither party will bear liability for breach of contract. The company stated that it has not made any investment in the project so far, and expects corresponding revenue to decrease by approximately 403 million yuan. Financial reports show that Chengdi Xiangjiang's operating revenue in the first half of 2026 was 1.473 billion yuan, up 14.59 percent year on year, but net profit was a loss of 6.4532 million yuan, turning from profit to loss compared with the same period last year.

Nongshang Environment's controlling subsidiary Xinsuan Shengyang has terminated its investment in the construction of the Guangzhou Smart Innovation Valley computing power infrastructure project due to funding falling short of expectations. The project was originally planned to involve an investment of no more than 83.6963 million yuan. The company stated that, affected by changes in macro credit policies and financial institutions' credit approval requirements, financing conditions differed from those at the initial stage of discussions, and shareholder capital contributions were also not implemented, so conditions for continuing to advance the project no longer existed. Nongshang Environment has been transforming toward the computing power sector in recent years, but its net profit attributable to the parent company recorded losses for three consecutive years from 2023 to 2025, and it still posted a loss of 29.1124 million yuan in the first half of 2026. Previously, Chengdi Xiangjiang's Yangzhou computing power center project saw revenue decrease by approximately 1.092 billion yuan, and Lianhua Holdings had multiple computing power contracts terminated. The computing power infrastructure industry is undergoing a rational correction.

Chengdi Xiangjiang announced the termination of a fixed-price private placement that had been in planning for nearly two years, altering the plan for state-owned capital to take control. On August 14, the company's board of directors approved the termination proposal and signed a rescission of subscription agreement and a rescission of voting rights waiver agreement with the subscriber, China Energy Engineering Beijing Smart Computing Technology Company. Under the original plan, China Energy Engineering Smart Computing intended to subscribe to 139 million shares at 5 yuan per share, raising no more than 697 million yuan, and would have held a 23.08 percent stake in the company after the issuance, with the State-owned Assets Supervision and Administration Commission of the State Council becoming the actual controller. The company said the termination was mainly due to significant changes in the capital market environment, industry development, and the commercial basis and strategic arrangements of the issuance, and cautioned that it expects a net loss attributable to the parent company of 7.2 million to 10.8 million yuan in the first half of 2026, and that it does not yet have a computing power leasing business. Before the termination announcement, the company's share price had hit the daily upper limit for three consecutive trading days, then fell for two consecutive days, closing at 11.48 yuan per share on August 17, down 3.69 percent.