China-listed Xiechuang Data, a Shenzhen-based data storage and AI computing company, said on June 26 it plans to raise up to 8 billion yuan (US$1.18 billion) through an A-share issuance to no more than 35 investors.

The new shares will equal no more than 30% of its pre-issue share capital. The proceeds will fund AI infrastructure and repay debt.

The company allocated 4.7 billion yuan (US$689 million) to a 12-month intelligent computing center project using leased third-party data centers and high-performance graphics processing unit servers.

It also set aside 1.8 billion yuan (US$267 million) to expand production of enterprise solid-state drives and memory modules, and add upstream packaging and testing capacity.

Another 1.5 billion yuan (US$221 million) will go toward working capital and bank loan repayment.

Xiechuang Data said its asset-liability ratio reached 81.48% as of December 31, 2025.

Its short-term borrowings stood at 4.3 billion yuan (US$631 million), and long-term borrowings at 7.5 billion yuan (US$1.1 billion).

The company also warned that some overseas-sourced high-performance computing equipment or components could face delivery delays, reduced volumes, or non-delivery.

The fundraising plan comes as organizations in China invest more in graphics processing unit-based AI data center infrastructure, while US export rules restrict sales of advanced graphics processing units to China.

🔗 Source: Security Times