UCloud plans to raise no more than 1.5 billion yuan through a private placement to fund the Ulanqab Intelligent Computing Center and Intelligent Computing Cluster projects.

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UCloud plans to raise no more than 1.5 billion yuan.

On March 20, UCloud (688158.SH) announced that its third board of directors’ eleventh meeting approved the proposal for a specific issuance of A-share stocks for the year 2026. This issuance aims to raise a total of no more than 1.5 billion yuan, and all funds raised, after deducting issuance costs, will be used for the “UCloud Ulanqab Intelligent Computing Center and Intelligent Computing Cluster Construction and Operation Project.”

The announcement stated that within the scope of the aforementioned fundraising investment projects, the board of directors can make appropriate adjustments to the amount of funds invested in the above projects, authorized by the shareholders’ meeting. Before the funds from this issuance are in place, UCloud can invest its own or self-raised funds based on the actual situation of the fundraising projects, and these investments can be replaced by the raised funds after they are secured, following the relevant procedural regulations. After the funds are raised, if the actual net amount of funds raised, after deducting issuance costs, is less than the intended investment amount, UCloud will resolve the shortfall on its own.

On the same day, UCloud released a feasibility analysis report for the 2026 specific issuance of A-share stocks, indicating that the type of stocks to be issued is domestic listed ordinary shares (A-shares) with a par value of 1 yuan each. The number of issuances will be no more than 35 specific objects (including 35) that meet the conditions set by the China Securities Regulatory Commission, including investment fund management companies, securities firms, trust companies, financial companies, asset management companies, insurance institutional investors, qualified foreign institutional investors, other domestic legal entity investors, individuals, or other qualified investors. The number of shares UCloud plans to issue to specific objects will be calculated based on the total amount of funds raised divided by the issuance price, and the total number of shares issued will not exceed 45 million shares (including this number) and will not exceed 30% of the company’s total share capital before this issuance.

UCloud is a neutral, full-stack third-party cloud computing service provider in China, mainly engaged in self-developed and provided IaaS services such as computing, networking, storage, and PaaS applications such as databases, caches, containers, as well as artificial intelligence products.

The announcement shows that this project is intended to be constructed on the existing land in the Ulanqab Chahar High-tech Development Zone, with the main construction content including two AIDC buildings D and E, and the purchase of supporting high-performance AI servers and other equipment. Upon completion of the project, it will mainly provide a package of AI infrastructure and computing products, including high-power cabinets, intelligent computing, and general-purpose computing, serving a wide range of downstream AI industry clients. The total investment amount for the project is 1.8 billion yuan, which mainly includes expenses for the construction of the intelligent computing center and intelligent computing cluster, as well as high-performance AI servers and supporting hardware equipment. Among this, 1.5 billion yuan is planned to be invested using the raised funds.

UCloud states that the project implementation entity is its wholly-owned subsidiary Inner Mongolia UCloud Information Technology Co., Ltd. The project aligns with the company’s strategic development direction, has a broad market development prospect, and high economic efficiency. Upon completion, this project will help meet market demand and further enhance the company’s profitability and competitiveness.

Regarding the necessity of this fundraising investment project, UCloud points out in the announcement that: first, based on the company’s strategic layout, it aims to provide a package of solutions such as AI infrastructure and computing products to better meet the urgent needs of downstream customers; second, it aligns with the rapid development of AI applications, strengthening the layout of inference computing services while also considering high-quality training computing supply; third, it fully utilizes Ulanqab’s advantages as a national-level computing hub city for the “Eastern Data and Western Computing” initiative, enhancing the company’s business cluster effect.

It is reported that UCloud has already put into operation its data centers (Phase I and Phase II) in Ulanqab, which have high utilization rates and achieved good returns, providing strong support for comprehensive solutions related to AI infrastructure and computing products for downstream customers.

The UCloud 2025 annual performance report shows that the company’s operating revenue for 2025 is 1.699 billion yuan, an increase of 13.11% year-on-year; the net profit attributable to the parent company is -76.6832 million yuan, a year-on-year decrease in losses of 68.19%. UCloud states that the main factors affecting its operating performance for 2025 are as follows: the company’s operating revenue increased by 13.11% year-on-year, and the gross profit margin improved from 18.86% in the same period last year to 25.83%. In addition, the investment income from affiliated enterprises has also significantly increased. As a result of these factors, the net profit attributable to the parent company has increased, and losses have significantly narrowed compared to the same period last year.

According to Great Wisdom VIP, as of the close on March 20, UCloud’s stock fell by 5.94%, trading at 45 yuan per share.

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