Guangdong Gaole Co., Ltd.
Announcement on Signing a Major Contract for Cloud Computing Business Daily Operations
The Company and the entire board of directors guarantee the truthfulness, accuracy, and completeness of the contents of this announcement, and that there are no false representations, misleading statements, or material omissions.
Special Instructions:
- Impact on the Company's Operating Results
This contract is a cloud computing project service contract. The total amount stipulated in the contract is RMB 3.195 billion, to be executed over five years. Project services require acceptance by Party A. During the contract period, services must meet the agreed service level standards. If product quality or performance does not meet the acceptance standards, or services cannot meet the agreed levels, there may be risks of delayed acceptance and fee deductions, which will affect the Company's revenue. The extent of the impact on the Company's performance in future years is uncertain and will be subject to the revenue confirmed by the Company's audited financial statements.
- Performance Risk
The counterparty was established in April 2026 with a registered capital of RMB 10 million. Its parent company was established in 2019, has assets exceeding RMB 600 million, and annual revenue exceeding RMB 500 million. It has been deeply involved in the artificial intelligence industry for a long time and possesses good creditworthiness and performance capabilities. However, during the execution of the contract, there are significant uncertainties or risks related to laws, regulations, policies, performance capabilities, technology, and the market. Additionally, there may be risks arising from major changes in the external macroeconomic environment, sudden unforeseen events, and other force majeure factors, which could lead to delayed performance, extended performance periods, or partial or complete non-performance of the contract.
- Procurement and Delivery Risk
The performance of this contract involves the procurement of equipment and other raw materials. Core computing equipment and networking equipment have all been prepared. The networking plan has been agreed upon with the client. Delivery, network acceptance, and management and billing are expected to be completed in August.
- Funding Risk
The initial equipment investment for this project is substantial. The sources of project funds are: first, equity incentive payment funds and bank deposits, which are self-owned funds; second, credit lines/financial leasing loans from financial institutions of no more than RMB 2.4 billion. Related financing has not yet completed all final legal documentation, and there are risks of financing approval not being obtained, insufficient credit lines, and mismatches between drawdown timing and equipment delivery. At the same time, the Company's interest-bearing debt will increase significantly, and the asset-liability ratio is expected to reach 80%.
The successful approval and disbursement of the financial leasing loan for the previously announced contract has increased the possibility of approval for this loan.
- Personnel Risk
Cloud computing services rely heavily on personnel with experience in cloud computing operations and technical expertise. The Company has previously announced that the delivery ratio for major contracts has reached over 80% and has been accepted by clients, accumulating technical talent for this project. Currently, the cloud computing business has over 30 employees, providing a talent base for executing major projects in parallel. As a new entrant, if the recruitment of core technical teams is insufficient or the turnover rate is too high, the Company will face the risk of a shortage of technical personnel.
- Cross-Industry Risk
This contract involves cross-industry operations. Management's understanding of the technological iteration and customer needs in the cloud computing industry may be misjudged, increasing operational and compliance risks. The Company's previously announced major contracts are progressing as planned. The new management team has accumulated corresponding project execution experience, laying the foundation for the smooth progress of this project.