(Yicai) Nov. 28 -- Shares in Lettall Electronic fell after the Chinese supplier of precision structural parts and electronics components said it plans to open an artificial intelligence computing power lease service business in Singapore.

Lettall [SHA: 603629] closed down 3.27 percent at CNY29.02 (USD4.06) in Shanghai today, after earlier gaining as much as 3.9 percent.

The company’s unit in Singapore will invest USD50 million to open an AI computing power lease business renting advanced computing power servers, ancillary facilities, and computing power resources in the city-state to overseas clients, Yixing, Jiangsu province-based Lettall announced late yesterday.

The firm did not disclose its business plans and potential overseas clients nor predicted the profit outlook of the new business, but said the investment would not substantially impact its performance in the short term.

Lettall produces precision structural parts and electronic components for liquid crystal displays but made a foray into the AI computing power service market in early June, when it announced it would spend CNY450 million (USD62.9 million) to buy a 90 percent stake in an AI computing power leasing service provider with Chinese internet giant Tencent Holdings among its clients.

Editor: Futura Costaglione