Wireless Group (00511) plans to establish a joint venture with Jihui Capital to provide advanced computing power services

Zhitong Finance App News, Wireless Group (00511) announced that on August 10, 2026, Wireless Group and Triton Square Limited, an affiliate of Jihui Capital, signed an agreement to establish a new joint venture to provide advanced computing power services for artificial intelligence-related uses in Hong Kong. It is proposed that Wireless Group and GX Capital hold 51% and 49% of the common voting shares in the joint venture company, respectively.

The joint venture will plan, guide and fund the Wireless Group to develop new computing power facilities in the company's corporate park at Tseung Kwan O Industrial Estate. The joint venture will procure, configure and operate computing power equipment such as graphics processors and central processing units within such computing power facilities (directly or indirectly through affiliated companies) to provide advanced computing power services related to artificial intelligence to external third party customers and wireless group member companies on a subscription basis.

After signing the agreement framework, Wireless Group and Jihui Capital will aim to sign a formal agreement within the second half of 2026 to establish a joint venture and begin implementing the project. The project will be implemented in stages over the next few years. Funding sources include capital investment of up to HK$2 billion from Jihui Capital into the joint venture, project bank financing, and group internal resources. The company aims to put the first phase, phase 1A of the project (planned computing power of approximately 10,000 PetaFlops), into operation from the fourth quarter of 2027.

Wireless Group is applying for approval to implement and implement the project from relevant government agencies. In addition, Wireless Group and Jihui Capital are also discussing with various international and domestic computing power equipment suppliers, including CLP Holdings Limited, on the power supply for the proposed computing power facilities and the procurement of graphics processors and other related hardware to provide advanced computing power services. Wireless Group and Jihui Capital are also forming a team of experts and professionals for the joint venture to promote project development.

Furthermore, on July 15, 2026, Wireless Group and Jihui Capital signed a letter of intent with a leading global technology group to order advanced computing power services.

Wireless Group and Jihui Capital are discussing technical and commercial aspects of the services to be provided to the Group. The parties are also jointly exploring different procurement and financing options to obtain computing power equipment that will constitute the proposed provision of services to the Group on a subscription basis. The parties are expected to sign a formal agreement within the second half of 2026.

The company is advancing the above plan as part of its continuous upgrading and transformation from a traditional TV broadcaster to a diversified media company in the digital age, thereby broadening its revenue streams. Thanks to the company's many years of cooperation with leading technology companies, the company sees a huge and growing demand for computing power resources with the rise of artificial intelligence, especially in the field of media content production. As the company actively uses artificial intelligence tools and applications to optimize internal creation processes and drive the production of AI-generated content to continue to increase, it is expected that the company's demand for computing power resources will also increase in the next few years. Additionally, the company is exploring potential artificial intelligence tools and services that allow external content creators to utilize the company's vast content library and thereby improve content production efficiency. As an important user in the future, the Wireless Group project will be an important help in driving the company's transformation. Through the development project, the company also hopes to play a leading role in advancing artificial intelligence to the cutting edge of media content creation and production in Hong Kong and the region.