Zhitong Finance APP News, Seventh Avenue (00797) issued an announcement that on March 15, 2022, the company indirectly wholly wholly -owned subsidiary Shanghai Ling Su and the lessor Shanghai Yuncheng Financial Leasing shall establish a financial leasing agreement. RMB 150 million sells rental assets to the lessor, and the lessor must rent the lease asset from Shanghai Ling Su at 48 months.
It is reported that rental assets include 2790 hosts, 9,800 graphics cards and 150 servers.
According to the announcement, since the cloud computing business began in April 2021, the Group has purchased various models of graphics cards, computer hosts, servers and other cloud computing accessories, so that the group can provide cloud computing services and create value for its shareholders.
The company believes that the financial leasing arrangement is the group’s additional liquidity, and the financing cost is fair and reasonable. The group can continue to use leased assets for existing cloud business, which is beneficial to the company and complies with the overall interests of its shareholders. Due to the international financial reporting standards, the transfer of financial leasing arrangements that have not actual asset value will not generate any income or losses in its comprehensive financial statements. The expected transfer agreement will be used to supplement liquidity for the group’s operations, including but not limited to the development and operation of the game business and the expansion of cloud computing business.