Gross Profit Margin Competitiveness Analysis of CC Creative Data's Intelligent Computing Business

Now I will provide you with a comprehensive and professional analysis report on the gross profit margin competitiveness of CC Creative Data’s intelligent computing business.

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According to CC Creative Data (300857.SZ)'s 2025 Semi-Annual Report, the company’s intelligent computing business achieved operating revenue of approximately RMB 1.221 billion, representing a 100% year-on-year increase; operating cost was approximately RMB 969 million, resulting in a gross profit margin of

[0]. This is the first time the company has separately disclosed business data of its intelligent computing products in a regular report, marking that this business has become an important revenue growth driver for the company.

CC Creative Data’s traditional main businesses are consumer electronics IoT intelligent terminals and data storage devices. Since 2024, the company has actively deployed in the intelligent computing track, and rapidly expanded its business layout through the following methods:

1. Capital Investment
   : Increased capital in its wholly-owned subsidiary CC Creative Cloud Computing to RMB 950 million to increase investment in computing power hardware. During the reporting period, cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets reached RMB 4.945 billion, focusing on equipment related to computing power services[1].

2. Entity Layout
   : Established computing power-related subsidiaries such as CC Creative Intelligent Computing Technology (Shenzhen) Co., Ltd. and CC Creative Intelligent Computing (Fuzhou) Data Co., Ltd.

3. Supply Chain Integration
   : Conducted connected transactions with Qishuo (Shenzhen) Technology Co., Ltd., SEMSOTAI USA INC., etc., to layout the computing power hardware supply chain.

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There are significant differences in gross profit margins among segmented businesses in the intelligent computing and IDC service industry, forming a stepped distribution from low to high:

Business Type	Gross Profit Margin Level	Characteristic Analysis
Cabinet Leasing Service	Approximately 5.08%	Heavy asset, high depreciation, fierce competition, meager profit margin
AI Server Manufacturing	3.45%-5%	Scale expansion-oriented, sacrificing profits for market share
Intelligent Computing Service	20%-30%	Technology + service added value, relatively stable profitability
Computing Power Solutions	Approximately 28.36%	High degree of customization, strong premium capability
Network Transmission and Value-Added Services	Approximately 31.95%	High technical barriers, differentiated competition
Operation and Maintenance Services	Approximately 58.59%	Light asset, high stickiness, optimal profit margin

Dimension	Evaluation
vs Traditional IDC Cabinet Leasing	Approximately 15 percentage points higher, with obvious advantages
vs AI Server Manufacturing	Approximately 15-17 percentage points higher, with a better profit model
vs Industry Average of Computing Power Services	Within a reasonable range, in line with business characteristics
vs High Gross Profit Margin Businesses (Chips/O&M)	There is a gap, but the business positioning is different

• Inspur Information
  : The gross profit margin in Q1 2025 was only 3.45%. The company stated that fluctuations in gross profit margin are normal due to multiple factors such as customer structure, product structure, raw material supply, and market competition[2]
• Foxconn Industrial Internet
  : The gross profit margin of its cloud computing business in 2024 was approximately 4.99%, relatively stable but still at a low level

• Iluvatar CoreX
  : The gross profit margin of general-purpose GPU products was 56.6%, and that of AI computing power solutions was 31.7%. The overall gross profit margin rebounded from 45.1% in H1 2024 to 50.1% in H1 2025[3]

• A transformed IDC enterprise: The gross profit margin of computing power and cloud services was 28.36%, with an overall gross profit margin of 12.05% (2024). The overall gross profit margin increased to 20.60% in the first three quarters of 2025[4]

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The 20.6% gross profit margin of CC Creative Data’s intelligent computing business is 3-4 times higher than that of traditional cabinet leasing and AI server manufacturing, reflecting the company’s differentiated positioning of “computing power infrastructure + platform services”:

• The company has built a full-stack computing power service platform, supporting capabilities such as heterogeneous computing power management and multi-user leasing, real-time scheduling of computing power resources, and adaptation of mainstream AI models
• Deeply penetrates fields such as cloud gaming, cloud mobile phones, AI applications, embodied robots, and finance, providing customized solutions
• Provides full-process closed-loop services from data generalization, online development, scenario-based training and fine-tuning to online inference

The 20.6% gross profit margin of the intelligent computing business indicates that the company has certain cost advantages in the following aspects:

• Global industrial layout, with overseas subsidiaries capable of coordinating cross-border resource allocation for computing power business
• Integrates upstream hardware resources through connected transactions to ensure stable supply and cost control of computing power hardware
• The scale effect brought by the multi-node computing power network is gradually emerging

From the perspective of financial data, the company’s intelligent computing business is on a healthy development track:

• Revenue scale doubled year-on-year (100%), demonstrating strong market demand
• Gross profit margin is significantly higher than that of heavy-asset traditional IDC businesses
• The company’s debt risk rating is “low risk”, and its financial structure is relatively stable[0]

• There is an obvious gap compared with AI chip design enterprises (gross profit margin 50%+), and the autonomy of core technologies needs to be improved
• There is a large gap compared with operation and maintenance services (gross profit margin 58%+), and the service value-added capability needs to be enhanced

According to industry analysis reports, the current intelligent computing power market presents a trend of “open source, openness, and standardization”, which has promoted rapid expansion of the industry scale, but at the same time has brought fierce competition[2]. CC Creative Data needs to face:

• Market share squeeze from leading IDC service providers
• Competition from internet cloud vendors’ self-built computing power centers
• Potential threats from AI chip manufacturers extending downstream

The company’s latest financial data shows a negative free cash flow (-RMB 651 million)[0], and large-scale capital expenditures have certain restrictions on short-term profitability.

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According to data from the China Academy of Information and Communications Technology (CAICT), the scale of China’s intelligent computing power market reached USD 19 billion in 2024, with a year-on-year growth of 86.9%[4]. The market growth rate reflects the expansion of the basic market driven by demand iteration:

• Internet and technology enterprises, as core drivers, continue to increase their layout of AI computing power
• The public utility sector accelerates the migration of government clouds relying on the “East Data West Computing” project
• In traditional industries, scenarios such as digital twins in manufacturing, high-frequency financial transactions, and AI medical diagnosis have driven a doubling of computing power investment

From the industry perspective, the gross profit margin of intelligent computing power services presents the following trends:

1. Short-term
   : During the scale expansion stage, pressure on gross profit margin is normal
2. Medium-term
   : As the rack utilization rate increases and scale effects emerge, the gross profit margin is expected to improve
3. Long-term
   : Enterprises with differentiated service capabilities will obtain higher premiums

Taking a transformed IDC enterprise as an example, its overall gross profit margin increased from 12.05% in 2024 to 20.60% in the first three quarters of 2025, an increase of 8.55 percentage points[4], which confirms the industry trend of gradually improving profitability of intelligent computing power businesses.

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Evaluation Dimension	Rating	Explanation
Absolute Level	Medium	20.6% is at the mid-tier level of the industry
vs Traditional Businesses	Excellent	Significantly higher than traditional IDC and server businesses
vs High Gross Profit Margin Businesses	Obvious Gap	There is a gap with chip design and operation and maintenance services
Profit Sustainability	Good	Differentiated business model, effective cost control

The

of CC Creative Data’s intelligent computing business is reflected in:

1. Global Layout and Resource Integration Capability
   : Overseas subsidiaries coordinate cross-border resource allocation, and connected transactions ensure supply chain stability
2. Technology and Platform Capability
   : Full-stack computing power service platform, supporting heterogeneous computing power and multi-scenario adaptation
3. Capital Support
   : Loans from controlling shareholders, bank credit lines, and H-share preparation work provide sufficient capital guarantees

1. Risk of Further Pressure on Gross Profit Margin
   : Intensified industry competition may squeeze profit margins
2. Risk of Technological Iteration
   : The rapid evolution of AI technology puts forward higher requirements for computing power service capabilities
3. Capital Expenditure Pressure
   : Large-scale investment may affect short-term financial performance

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The 20.6% gross profit margin of CC Creative Data’s intelligent computing business is

, with the following characteristics:

• Significantly better than
  traditional cabinet leasing (around 5%) and AI server manufacturing (3-5%) businesses
• Basically in line with
  the average level of the intelligent computing service industry (20%-30%)
• Lower than
  AI chip design (50%+) and high-end operation and maintenance services (58%+)

From a competitiveness perspective, this gross profit margin level reflects that the company’s differentiated strategy of “computing power infrastructure + platform services” has initially taken effect, and it has certain cost control capabilities and business value-creation capabilities. Considering the rapid growth of the intelligent computing power market and the company’s active strategic layout, there is room for continuous improvement in the profitability of this business.

However, investors also need to pay attention to the impact of risk factors such as intensified industry competition, technological iteration, and capital expenditure pressure on the company’s long-term profitability.

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[0] Jinling API - CC Creative Data Financial Analysis and Company Profile Data

[1] Sina Finance - CC Creative Data 2025 Semi-Annual Report

[2] Forbes China - “Booming Demand for AI Servers: Foxconn Industrial Internet Grows Steadily, Inspur Information Faces Margin Pressure Amid Expansion”

[3] Industry Research Report - Analysis of Iluvatar CoreX’s AI Computing Power Business

[4] China Academy of Information and Communications Technology (CAICT) - Analysis Report of Computing Power Center Service Providers (2025)