(Yicai) Oct. 12 -- Shares in China Bester Group Telecom surged as much as 6.1 percent today after the Chinese telecoms service provider said it will invest CNY5.5 billion (USD753.5 million) to develop the firm's business base in eastern China which will mainly consist of a green high-performance computing power center and battery pack plant as Bester presses ahead with its transition into a computing power supplier.

Bester’s share price [SHA: 603220] closed up 3.6 percent at CNY33.66 (USD4.61). Earlier in the day it hit CNY34.48. The stock has more than tripled in value since the start of the year, reaching its highest since March 2019 earlier this week, on the promising potential of the artificial intelligence computing power services sector.

The facilities, which will be located in Hefei, eastern Anhui province, will achieve an annual revenue of CNY10 billion (USD1.4 billion) and pay around CNY400 million (USD54.8 million) in taxes per year once finished, the Wuhan, central Hubei province-based company said yesterday, citing the deal signed with the manager of the Hefei Shushan Economic Development Zone. 

No further details were given, but the firm said that the project it announced in August would be part of its east China base. That month Bester said that it has started building a smart computing power center in Hefei at a cost of CNY850 million (USD116.4 million). Construction is expected to take one year.

Bester’s new business model is to lease graphics processing unit servers to help clients use expensive equipment more cost-efficiently while meeting huge computing power demand stemming from the emergence of artificial intelligence.

For Bester, intelligent computing power services related to large language models are one of the firm's future development priorities, Chairman Li Liubing said during the China Computing Power Conference in August. Bester aims to achieve a service capability of 10,000 GPUs with 10,000 P computing power in the next three years, of which 5,000 P will be realized before the end of this year, he added.

Editor: Kim Taylor