From minority stake to controlling interest! The trillion-yuan market value company Dongyang Sunshine plans to initiate a major asset restructuring, bringing the computing power provider Qinhuai Data "into its fold"

A 28 billion yuan computing power asset acquisition has just been finalized, and new capital operations have already surfaced.

On the evening of February 24, the trillion-yuan market cap company Dongyangguang (SH600673, suspended trading) announced that the company is planning to acquire control of Yichang Dongshu No.1 Investment Co., Ltd. (hereinafter referred to as “Dongshu No.1”) through issuing shares and to raise supporting funds. Since “Dongshu No.1” indirectly holds 100% of Qinhuai Data’s China operations, this move means Dongyangguang plans to officially bring Qinhuai Data into the listed company’s system.

This is just over a month after the joint buyer group led by Dongyangguang’s controlling shareholder completed a cash purchase of Qinhuai Data’s China business. On January 16, the buyer group announced the completion of the acquisition of Qinhuai Data’s China operations for 28 billion yuan in cash, with Dongyangguang contributing 3.45 billion yuan as a shareholder.

From “shareholding” to now seeking “control,” Dongyangguang’s strategic intent toward Qinhuai Data is shifting. It is reported that Qinhuai Data was once part of Bain Capital’s global data center business. Additionally, Qinhuai Data is a core computing power supplier for ByteDance.

Planning to acquire control of Qinhuai Data through share issuance

On the evening of February 24, Dongyangguang announced that it is planning to acquire control of Dongshu No.1 by issuing shares and raising supporting funds.

Dongshu No.1 was established specifically for acquiring Qinhuai Data and is controlled through its wholly owned subsidiary, Yichang Dongshu No.3 Investment Co., Ltd. (hereinafter “Dongshu No.3”), which controls all of Qinhuai Data’s operations in China. This means that once the transaction is completed, Dongyangguang will shift from an indirect shareholder to the actual controller of Qinhuai Data’s China business and will consolidate this large computing power asset into its financial statements.

This transaction is expected to constitute a major asset restructuring and a related-party transaction but will not change the actual controlling shareholder of Dongyangguang. The company’s stock has been suspended since the market opened on February 24 and will remain suspended on February 25, with an expected suspension period of no more than 10 trading days.

This strategic shift comes just over a month after the previous acquisition was finalized. In the initial plan disclosed in September 2025, Dongyangguang clearly stated that after increasing its capital in Dongshu No.1, it would become a shareholder and indirectly hold shares in Qinhuai Data.

Now, initiating a major asset restructuring indicates that Dongyangguang is no longer content with a shareholding role but aims to hold the dominant control and core assets of Qinhuai Data. Dongyangguang stated that it has signed a “Letter of Intent” with the preliminary transaction counterpart, and the specific transaction method, plan, share price, and valuation arrangements will be negotiated and determined later by all parties.

Capital battles over Qinhuai Data

On January 16, this year, led by Shenzhen Dongyangguang Industrial Development Co., Ltd. (hereinafter “Dongyangguang Industrial”), the controlling shareholder of Dongyangguang, and comprising Dongyangguang and other investors, announced the completion of the acquisition of Qinhuai Data’s China operations for 28 billion yuan in cash. This deal was regarded as one of the largest infrastructure acquisitions in Asia in recent years in the field of computing power.

According to the announcement, to complete the acquisition, the buyer group jointly increased capital in the holding platform “Dongshu No.1.” Dongyangguang planned to invest 3.5 billion yuan, and Dongyangguang Industrial invested 4 billion yuan. By the completion of the deal on January 17, Dongyangguang had invested a total of 3.45 billion yuan.

The core target of this capital operation—Qinhuai Data—is a leading operator of large-scale computing infrastructure solutions in China. Previously, Dongyangguang responded to regulatory inquiries from the Shanghai Stock Exchange, stating that according to the China Academy of Information and Communications Technology’s “Analysis Report on China’s Computing Power Center Service Providers (2024),” Qinhuai Data Group, the original owner of the target, ranked second among Chinese IDC service providers in overall scale, capability, and financial health. As of May 2025, the company’s data center operations had a total IT capacity of 782 MW, with 137 MW under construction.

A reporter from Daily Economic News learned that Qinhuai Data Group was once listed on NASDAQ and was privatized in 2023 through a leveraged buyout initiated by Bain Capital. By the end of 2023, Bain Capital successfully took Qinhuai Data Group private at a total valuation of approximately $3.16 billion, and it was delisted in December 2023.

In September 2025, Dongyangguang Industrial led the acquisition of all of Qinhuai Data’s China operations. Public reports indicated that many Chinese companies competed for Qinhuai Data, but ultimately, the buyer group led by Dongyangguang and its controlling shareholder emerged victorious.

Public financial data shows that Qinhuai Data’s China operations have performed well in recent years, with revenue of 6.048 billion yuan and net profit of 1.309 billion yuan in 2024. From January to May 2025, revenue reached 2.607 billion yuan, with a net profit of 745 million yuan.

Notably, before the suspension, Dongyangguang’s stock price had already experienced a rally. Since February 2026, the stock price has increased by over 38%. In 2025 alone, the stock price nearly doubled, with an increase of almost 100%.

(Source: Daily Economic News)