Produced by | Entrepreneurship Frontline

Art Editor | Xing Jing

Reviewed by | Song Wen

On October 8, Feng Zhushou revealed the latest developments regarding guarantees for its subsidiary's debts. The company plans to guarantee a 199.58 million yuan loan for its subsidiary, Guangdong Jisuan Technology Co., Ltd. (hereinafter referred to as 'Guangdong Jisuan').

Previously, Feng Zhushou's board of directors and general meeting of shareholders approved a guarantee plan with a ceiling of 6 billion yuan. The substantial guarantee is part of Feng Zhushou's strategic shift towards AI computing power leasing. To date, the company has secured computing power leasing orders exceeding 10 billion yuan.

However, with only 330 million yuan in cash on hand, ensuring the smooth execution of over 10 billion yuan in computing power orders poses a significant challenge for Feng Zhushou.

Once this guarantee contract is finalized and bank loans are secured, will Feng Zhushou be able to fulfill the over 10 billion yuan computing power orders?

1. Aggressive Bidding Leads to Margin Decline, Profit Growth Lags Revenue

Following the AI computing power boom, Feng Zhushou gained prominence among investors as a computing power concept stock, thanks to its successive signing of massive computing power orders. However, as these orders are yet to be delivered, the computing power business has not yet generated revenue. Currently, the company's core business remains as a digital commodity operations supplier, with over 90% of its revenue derived from this sector.

Digital commodity operations involve B-side virtual rights aggregation and distribution, along with platform operations services. The company leverages its proprietary digital commodity trading cloud platform to purchase various virtual digital rights in bulk from upstream sources and then packages them into rights bundles, point redemption pools, and marketing activity packages. These are distributed through API/SaaS/PaaS embedded in B-side client APPs/mini-programs (e.g., B-side bank and operator APP interfaces).

The company's primary profit sources are purchase and resale price differences, platform operations service fees, and marketing subsidies.

Feng Zhushou's product lineup includes phone bills, data cards, long video and audio memberships, WPS memberships, movie tickets, etc.

In the digital rights distribution sector, competition is fierce due to service similarities. To acquire more clients, Feng Zhushou employs a low-price bidding strategy to expand its client base.

Thanks to increased client orders, Feng Zhushou's operating revenue has been steadily rising. Data shows that in 2021, its operating revenue was 715 million yuan, which surged to 2.09 billion yuan in 2025, reflecting a compound annual growth rate of 29.5%.

(Image/Shentu Network, based on the VRF protocol)

Despite rapid revenue growth, Feng Zhushou's gross profit margin has been declining annually due to price reductions in its packaged products. In 2021, the gross profit margin for its digital virtual commodity integrated services was 27.87%, but by the first half of 2026, it had dropped to 12%.

The decline in gross profit margin has resulted in net profit growth after deducting non-recurring items lagging far behind revenue growth. In 2021, the net profit after deducting non-recurring items was 102 million yuan, which increased to 152 million yuan in 2025, with a compound annual growth rate of only 10.5%.

In addition to the margin decline, expanding revenue through price reductions has also deteriorated the company's cash flow. Since traffic payments and interfaces primarily come from mobile operators and banks' APPs, when C-side users purchase relevant phone bills and long video membership traffic products, funds are initially paid to the operators and banks.

Bank and operator clients do not make immediate payments but wait for a period before paying Feng Zhushou. For instance, in 2025, the company's accounts receivable turnover days were as high as 144.5 days, while the industry's standard excellent accounts receivable period is within 60 days.

Due to rapid short-term expansion and excessively long payment terms, from 2021 to 2025, the company's operating cash flows were -52.18 million yuan, -121 million yuan, -229 million yuan, -138 million yuan, and 89.84 million yuan, respectively. Over five years, the company's operating cash flows cumulatively flowed out by over 630 million yuan.

Consequently, the balances of Feng Zhushou's accounts receivable and notes receivable have been continuously rising. At the end of 2021, the balances were 297 million yuan, and by June 30, 2026, they had increased to 1.344 billion yuan.

(Image/Shentu Network, based on the VRF protocol)

The rise in accounts receivable balances has also led to a continuous increase in credit impairment for Feng Zhushou. In 2025, the company's credit impairment amount was 23.2709 million yuan, mostly bad debt from accounts receivable, compared to only 8.109 million yuan in 2021.

2. With Only 300 Million Yuan in Cash, Over 7 Billion Yuan in Servers Must Be Purchased After Signing Billion-Yuan Computing Power Orders

Amid the continuous decline in the gross profit margin of its core business, Feng Zhushou is actively seeking a second growth curve, with a focus on the booming AI computing power leasing market.

Feng Zhushou's foray into computing power dates back to 2019 when the company initiated research and development of cloud terminals (cloud phones, cloud games), utilizing its self-developed cloud scheduling platform to accumulate capabilities in computing power scheduling, data center operations, and bandwidth operations and maintenance. For a long time thereafter, computing power served as an internal supporting business, supplied only to its own cloud terminal products.

By 2025, with the surging demand for AI computing power, Feng Zhushou began to enter the AI computing power leasing market. In September 2025, the company announced plans to raise 984 million yuan through a private placement, with 548 million yuan earmarked for the 'Cloud Terminal Computing Power Center' (Maoming Xinyi Intelligent Computing Center).

The funds are primarily used to purchase servers and cabinets externally, build general-purpose + AI intelligent computing power clusters, aiming to provide computing power leasing services externally while supporting its own cloud terminal business.

(Image/Shentu Network, based on the VRF protocol (AI digital content))

In November 2025, Feng Zhushou, through its wholly-owned subsidiary, successfully bid for and acquired land for the Guangdong Xinyi project, establishing a physical computing power park. Simultaneously, the company set up a dedicated computing power subsidiary, Ya'an Yunzhi Computing Power Technology Co., Ltd. (hereinafter referred to as 'Ya'an Yunzhi'), to undertake computing power leasing orders.

In August 2026, Feng Zhushou announced that its subsidiary, Ya'an Yunzhi, had signed a computing power service contract with Company B for 4.608 billion yuan (including tax) over five years. To fulfill these computing power orders, Feng Zhushou had previously signed a server procurement agreement with Company A for 3.062 billion yuan (including tax), to be delivered in batches.

In September 2026, the company signed another computing power service agreement worth 5.717 billion yuan, with a cooperation period of 60 months. To deliver this batch of orders, Feng Zhushou had previously signed a server procurement agreement with Company C for 3.96 billion yuan (including tax).

However, the market has significant doubts about whether Feng Zhushou can smoothly deliver the two computing power leasing orders totaling over 10 billion yuan. As of June 30, 2026, Feng Zhushou only had 329 million yuan in cash on hand, while the total cost of its two server purchases exceeded 7 billion yuan.

According to Feng Zhushou's disclosures, the funds for server purchases mainly come from its own funds, financial leasing, and bank credit financing. The proportion paid with its own funds is only 5%-20%, while financial leasing is expected to account for 80% to 95% of the purchases.

Financial leasing does not require cash payments upfront, but due to the rapid update speed of AI servers, Feng Zhushou may face the risk of declining rental income in the future. The interest expenses from financial leasing are fixed, and if rental income declines too quickly, there is a possibility of losses in the computing power business generated by purchasing servers through financial leasing.

Additionally, the servers purchased by Feng Zhushou through financial leasing have not yet fully arrived, posing a risk of delayed AI server deliveries and inability to fulfill orders on time.

With only 300 million yuan in its own funds, Feng Zhushou has signed computing power service orders worth 10 billion yuan and server procurement agreements exceeding 7 billion yuan. This leverage ratio is undeniably high.

Therefore, despite Feng Zhushou's transition towards the computing power industry and securing large orders, there remains significant uncertainty about whether it can generate profits for the company as scheduled.

3. Stock Price Surges After Transition to AI Computing Power Leasing, but Executives Reduce Holdings at High Prices

Before its transition to AI computing power leasing, Feng Zhushou was relatively unknown in the capital market. Public information shows that Feng Zhushou was established in 2012, with its predecessor being Guangzhou Feng Bang Shou Network Technology Co., Ltd. Initially, it focused on mobile application distribution and operation business and gradually entered the agency and distribution field of operator virtual commodities (such as phone bills and traffic), achieving initial primitive accumulation.

Subsequently, Feng Zhushou expanded its business channels, extending its 'phone assistant' services from operators to offline mobile phone chain channels, and became a pre-installation and promotion channel for the APPs of major internet companies such as Tencent, Baidu, Alibaba, and JD.com.

Against the backdrop of the gradual expansion of its digital distribution business scale, Feng Zhushou set its sights on the capital market and successfully listed on the National Equities Exchange and Quotations (NEEQ) in 2016.

(Image/Shentu Network, based on the VRF protocol (AI digital content))

After listing, Feng Zhushou further deepened its business by initiating the aggregated operation of digital commodities and expanding rights-based cooperation for digital commodities such as 'top video memberships' through operator channels.

In 2019, Feng Zhushou established a holding subsidiary, 'Handing Feng Zhushou,' officially entering the 'cloud terminal products + computing power operation' business sector and initiating its second and third growth curves.

After several years of development, Feng Zhushou's performance further improved. In May 2023, the company successfully listed on the ChiNext board of the Shenzhen Stock Exchange, officially going public on the A-share market.

In the first year or so after listing on the A-share market, Feng Zhushou's performance in the capital market was lackluster. The company's stock price fell from a high of over 33 yuan per share in May 2023 to a low of just over 12 yuan per share in August 2024, a short-term decline of over 60% (Note: All stock prices mentioned are adjusted for corporate actions).

Benefiting from the recovery of the capital market and its transition to AI computing power leasing, Feng Zhushou's stock price continued to rise, reaching a high of 53.92 yuan per share in May 2026, a maximum increase of over 340% from the August 2024 level. Although the company's stock price has recently declined somewhat, it is still around 31 yuan per share.

Benefiting from the stock price increase, the net worth of the company's actual controller, Luo Hongpeng, has also surged. The semi-annual report shows that as of June 30, 2026, Luo Hongpeng is the company's largest shareholder, directly holding 63.3349 million shares of Feng Zhushou, accounting for 22.18% of the company's total share capital. Based on the current stock price, the value of these shares exceeds 1.9 billion yuan.

In addition to the actual controller, the company's deputy general manager and employee director, Ou Jintang, has also reaped substantial profits due to the stock price increase. As of June 30, Ou Jintang holds 1.073 million shares of Feng Zhushou, with a market value of approximately 33 million yuan based on the current stock price.

It is worth noting that in early 2025, when the stock price was surging, Ou Jintang successively reduced his holdings by 275,100 shares, with a total reduction amount of 10.9568 million yuan.

However, whether the stock price and market value can be sustained depends on whether Feng Zhushou's AI computing power orders can be executed and continue to generate profits. As of now, the company's PETTM (trailing price-to-earnings ratio) is approximately 57 times, with a P/E ratio percentile of approximately 50.85.

Considering that the company has only been listed for a short period, and the surge in its stock price has predominantly occurred following the announcement of its AI computing power leasing strategy (market entry) slated for 2025, it's noteworthy that prior to its official foray into AI computing power leasing, the company's Price-to-Earnings Trailing Twelve Months (PETTM) was consistently lower than its current level.

(Image source: Wind)

Therefore, relying solely on the digital virtual commodity integrated services business, which has been experiencing a persistent decline in gross profit margin, it would be challenging to justify and sustain the company's nearly 57-fold valuation in the long term.

For Feng Zhushou, the most critical task at present is to secure loans from relevant financial institutions to ensure sufficient funds for purchasing AI servers and fulfilling computing power leasing orders exceeding 10 billion yuan. Whether AI computing power leasing can emerge as the company's second growth engine hinges on several factors: the ability to maintain high prices for computing power leasing services, and whether the revenue generated from these services can adequately cover the depreciation of fixed assets and the interest expenses incurred from purchasing servers through financial leasing arrangements.

*Note: The featured image in this article is sourced from the official website of Feng Zhushou.