Electronics manufacturing services provider Valuetronics BN2 Holdings Limited has entered the AI industry by partnering Sinnet Cloud HK Limited on a joint venture (JV). Through its wholly-owned subsidiary, Value Match Company Limited (VML), Valuetronics will invest HK$7.7 million ($1.33 million) in cash for a 55% interest in the JV.
The JV, Trio AI Limited, will provide graphics processing unit (GPU) and AI-related value-added cloud services, according to a June 24 announcement.
SinnetCloud HK is a wholly-owned Hong Kong subsidiary of Sinnet Cloud Co. Ltd., a GPU and AI solutions provider affiliated with the Shenzhen Stock Exchange-listed Beijing Sinnet Technology Co., Ltd. It will hold the remaining 45% interest in TrioAI.
TrioAI will offer value-added services, including data services and model services, such as application optimisation, model training and inference. These offerings will be provided on an “as-a-service” basis.
As part of the JV collaboration, Valuetronics’ subsidiary will acquire the GPU-enabled servers and ancillary hardware required for the JV and lease them back to TrioAI for a term of 60 months at a rent calculated to principally cover the preliminary equipment acquisition cost not exceeding HK$60 million.
TrioAI will be responsible for the maintenance, upkeep and associated costs of the leased equipment during the lease term. This also comes with an exclusive option to VML or an affiliate for future equipment leasing.
Ricky Tse, chairman and managing director of Valuetronics, says one of the “most compelling opportunities” today is the integration of computing power with AI. “This combination stands to revolutionise industries, drive innovation and transform manufacturing.”
Tse adds: “The market demand and supply dynamics for GPU and AI-related services are highly favourable in Hong Kong, driven by continuous advancements in AI and increasing computational needs. Our strategic investment provides an opportunity to evaluate this growing trend and allows us to tap into the rising demand for cutting-edge AI solutions, positioning Valuetronics’ JV at the forefront of these advancements and harnessing the full potential of AI.”
In May, Valuetronics reported earnings of HK$159.6 million for the FY2024 ended March 31, 29.8% higher y-o-y. The higher earnings were attributed to improved margins and higher interest income.
Shares in Valuetronics closed flat at 62.5 cents on June 24. The stock is up more than 13% over the year.
