Dorsey & Whitney Advises Beijing Xunzhong on Placing of New H Shares under General Mandate
International law firm Dorsey & Whitney LLP acted as Hong Kong legal advisors to Beijing Xunzhong Communication Technology Co., Ltd. (“Xunzhong”) as to Hong Kong law in connection with its placing of new H shares under general mandate (the “Placing”). Xunzhong’s H shares are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 2597). Winbull Securities International (Hong Kong) Limited acted as sole overall coordinator and placing agent. With 11,190,000 new H shares placed at HK$28.20 per H share, the Placing raised approximately HK$315.56 million in gross proceeds and approximately HK$313.64 million in net proceeds. The Placing was completed on September 17, 2026.
Xunzhong is principally engaged in cloud-based communications services and enterprise digitalization services in the PRC. Xunzhong intends to use the net proceeds to build out its new computing power operation services business segment, which is operated independently of its existing businesses and focuses on computing power resource scheduling, artificial intelligence platforms, and customer-facing computing power and artificial intelligence products and solutions. Approximately 38% of the net proceeds will fund the development of infrastructure and R&D environment for the computing power business, including artificial intelligence training and inference servers, general-purpose computing and storage servers, network equipment and integrated cabling; approximately 22% will fund the research and development of platforms and products for the computing power business, including computing power scheduling and artificial intelligence platforms, customer-facing products and solutions, and data and model asset management platforms; approximately 15% will be used to procure elastic computing power and hosting services from third parties; approximately 8% will go toward team building and talent acquisition; approximately 7% will support market expansion, ecosystem cooperation and solution delivery; and approximately 10% will be used for general working capital and general corporate purposes of the Group.
Partner and Co-Head of Dorsey’s Asia Capital Markets practice Rachel Han and Of Counsel in the Capital Markets and Corporate Compliance group Carlton Ng, along with Associate Kristy Ting, led the Dorsey Hong Kong Capital Markets & Corporate Compliance group in navigating the regulatory and legal complexities of the Placing.
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