Ningbo Construction Engineering: The stock price has increased by a total of 50.50% since March 4; neither the company nor Zhongjing Cloud is involved in computing power leasing business.

After four consecutive limit-ups, on March 12, Ningbo Construction (601789.SH) closed at 7.48 yuan per share, up 2.47%, with a total increase of 50.50% since March 4.

Ningbo Construction issued a notice reminding that since March 11, the company’s stock turnover rates have been 48.45% and 49.07% respectively over the past two days, indicating high turnover and significant volume. The company’s stock price has risen sharply in the short term, which poses risks of market over-enthusiasm and irrational speculation. It has deviated seriously from the Shanghai Composite Index and the Civil Engineering Construction Industry Index, as well as from the company’s fundamentals, with a risk of rapid decline at any time.

Regarding the market classification as a new infrastructure stock related to computing power, Ningbo Construction responded that after verification, the company’s main business remains civil engineering construction, with no changes. The company directly and indirectly holds 32.3684% of the equity of Zhongjing Cloud Data Storage Technology (Beijing) Co., Ltd. (hereinafter referred to as “Zhongjing Cloud”), which is not included in the company’s consolidated financial statements.

The announcement further states that currently, both the company and Zhongjing Cloud are not engaged in computing power leasing business. Zhongjing Cloud’s main business is only the rental of cabinet spaces (standardized locations for placing servers, network equipment, and other IT hardware). Its profit scale is currently small, with an unaudited net profit of no more than 10 million yuan in 2025. The company’s investment in Zhongjing Cloud is recorded as other equity instrument investments, designated at fair value, with changes recognized in other comprehensive income, and does not require equity method accounting. This has no impact on the company’s performance.

The company has verified that as of the announcement date, neither the company nor its controlling shareholders have any major information that should be disclosed according to the Shanghai Stock Exchange’s rules and regulations but has not been disclosed, including but not limited to major asset restructuring, share issuance, acquisitions, debt restructuring, business restructuring, asset stripping, and asset injection.

On the operational side, in the first three quarters of 2025, Ningbo Construction achieved operating revenue of 13,575,421,246.92 yuan, a decrease of 5.69% compared to the same period last year; and net profit attributable to shareholders of the listed company was 182,404,729.39 yuan, down 16.93% year-on-year.

(Source: The Paper)