Zhitong Financial App News, Zhiyuan Holdings (00990) issued an announcement. On October 18, 2026, the buyer Deep Source (PN) Sdn Bhd. (An indirect wholly-owned subsidiary of the Company) entered into a sales agreement with the seller ASAS Panorama Sdn Bhd. According to this, the seller agreed to sell and the buyer agreed to purchase the property at a price of RM417 million (equivalent to HK$802 million), to be used as a development site for artificial intelligence data centers and upstream and downstream industrial projects.
The property is located in PN33573, Lot 115524, Bandar Gebeng, Daerah Kecil Gebeng, Negeri Pahang. It is a 176.3 hectare (equivalent to approximately 189.768 million square feet) of land in Pahang, Malaysia. The property is intended to be mainly developed and used as an artificial intelligence (AI) data center facility, along with related power infrastructure and ancillary facilities. Given its large land area of approximately 176.3 hectares, the Group plans to adopt a phased development approach, initially focusing on artificial intelligence data center infrastructure while retaining flexibility to seize potential future expansion opportunities, subject to obtaining necessary regulatory approvals, electricity supply and commercial viability.
Depending on market demand, applicable land use and planning requirements, regulatory approvals and commercial viability, the Group may also explore opportunities to attract strategic investors, technology partners and enterprises engaged in artificial intelligence computing infrastructure, semiconductor-related activities and other complementary technology industries to establish a broader technology and digital infrastructure ecosystem at this property.
The Company announced on September 7, 2026 that the Group's artificial intelligence data center project in Malaysia has been approved by the Ministry of Investment, Trade and Industry of Malaysia. On October 7, 2026, the Company further announced that for independent data center projects in different regions of Malaysia, the Group has concluded a master hosting service agreement with the customer, covering 67 megawatts of IT capacity.
The acquisition is related to the proposed new artificial intelligence data center in the property within Park No. 2 of Kuantan Industrial Park in Malaysia, which is different from the 67 MW project mentioned above. The acquisition marks another step in the Group's strategy to expand its Malaysian data center business footprint through development projects in different regions.
In terms of the acquisition, Beibu Gulf Holding (Malaysia) Sdn, which operates a substation near the property. Bhd. (Beibu Malaysia) signed a letter of commitment on October 18, 2026 to reserve 120 MW of power generation capacity for the proposed development project in the property, subject to the fulfillment of the terms and conditions of the letter of commitment. The contracting parties intend to negotiate a final electricity supply agreement. Generating capacity reserves are not equal to IT capacity already in production or delivery.
The Group also intends to apply for a new power generation license to support the additional power generation capacity required for the potential future expansion of the property's data center, subject to the necessary regulatory approval. As of the date of this announcement, the Group has not obtained the relevant license.
The property covers a total area of approximately 176.3 hectares and is expected to provide a venue for the phased development and potential future expansion of AI data center facilities, subject to planning requirements, regulatory approval, available electricity and customer needs. The Group intends to adopt a phased development model, taking into account available electricity, customer needs, regulatory approvals and capital allocation requirements.
In addition to developing artificial intelligence data center facilities, the Group plans to explore potential partnerships with third-party investors, infrastructure operators and technology companies for the development of this property. Subject to further evaluation and agreement, the cooperation may involve strategic investment, joint development arrangements, or introduction of complementary enterprises in artificial intelligence, semiconductor-related and other fields of technology. Such plans do not imply any specific commitment to cooperation or investment.
The directors believe that the property's huge land area, the geographical location of Kuantan Industrial Park No. 2 in Malaysia, and the conditionally reserved 120 megawatts of electricity can lay the foundation for long-term phased development and future expansion. Reserve capacity is still subject to the terms of the letter of commitment, and the final electricity supply agreement has not yet been signed. Such initiatives are intended to support the Group's long-term development strategy and potential diversification of revenue sources, subject to regulatory approvals, available electricity, customer needs, capital and commercial viability.