(Yicai) June 27 -- Dianguang Explosion-Proof Technology's shares surged by their daily trading limit after the Chinese company said its new artificial intelligence computing power services subsidiary has secured its first contract.

Dianguang [SHE: 002730] jumped 10 percent to CNY7.54 (USD1.04) a share in Shenzhen as of 2.05 p.m. today.

Zhejiang Dianguangyun Technology inked a CNY554 million (USD76 million) deal with Shanghai-based Infinigence AI yesterday, Dianguang announced late on the same day. The unit will supply AI computing services for five years and ensure the stable operation of the provided cloud computing services equipment, it added.

Dianguang set up Dianguangyun Tech to tap into the AI computing services sector in April, owning 65 percent of the unit. It aims to build a smart computing center and a data hub to provide the market with intelligent services, including Big Data technologies, large language models, the Internet of Things, and AI, the Yueqing-based parent company said.

Infinigence AI develops large AI infrastructure. It was established in May last year led by Wang Yu, a professor at Tsinghua University.

Editor: Martin Kadiev