Phancy Group Co., Ltd. Announces Major Investment in GPU Servers to Support Rapid API Business Growth

Key Highlights of the Announcement

• Phancy Group Co., Ltd. (formerly known as Beijing Fourth Paradigm Technology Co., Ltd.), listed on the Hong Kong Stock Exchange (Stock Code: 6682), has announced a proposed purchase of GPU servers and related accessories.
• The total investment for this purchase is set at RMB400 million, marking a significant capital expenditure for the company.
• The GPU servers are intended to be used for model inference and training, supporting the company’s API business and addressing the rapidly increasing demand for API calls.
• The announcement was made on a voluntary basis to keep shareholders and potential investors informed of the latest business developments.
• The seller(s) and their ultimate beneficial owner(s) are expected to be independent third parties, with no connection to the Company or its connected persons.

Details for Shareholders and Potential Investors

The Board of Directors emphasizes that the purchase is a strategic move designed to enhance the Group’s technological infrastructure and capability, particularly in AI model processing and API services. This investment is expected to:

• Enable the Group to meet surging market demand for API calls, which could signal strong business growth and expansion opportunities.
• Position Phancy Group as a competitive player in the AI and cloud services sector, potentially increasing its attractiveness to both clients and investors.
• Support scalability for future product offerings and service expansion, paving the way for new business opportunities.

Potential Impact on Share Value

This announcement is price-sensitive and may impact the share value of Phancy Group, given the scale of the investment and its implications for the company’s future growth. The RMB400 million expenditure reflects a strong commitment to expanding technical capability and responding to robust market demand. Investors should monitor subsequent developments and market reactions closely.

Board and Management Details

The announcement was signed by Dr. Dai Wenyuan, Chairman and Executive Director, on behalf of the Board. The Board comprises a mix of executive, non-executive, independent non-executive, and employee representative directors, ensuring comprehensive oversight and governance.

Summary

The proposed purchase of GPU servers represents a significant milestone in Phancy Group’s strategic roadmap. It is a clear indicator of the company’s intent to strengthen its API business and respond proactively to market trends, which may positively influence shareholder value and market sentiment.

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