LuoMan Co., Ltd. Pivots to AI with 293M Yuan Private Placement for Computing Power Build-Out

LuoMan Co., Ltd. Is Restructuring Its Business, with a 293 Million Yuan private placement to Continue Betting on computing power

On June 3, 2026, LuoMan Co., Ltd. (605289.SH) unveiled a proposed private placement plan, AIming to raise no more than 293 million yuan, all of which will be poured into the "Intelligent Computing Power Cluster Construction and Operation Project."

For a company that started with urban landscape lighting in 1999 and only landed on the capital market in 2021, this step is far more resolute than the outside world might have imAGIned. In the proposal, LuoMan stated bluntly that after the project is implemented, "the company's AI computing power business will extend from the current construction delivery anD system integration to computing power resource operation and continuous service fields."

And almost all the confidence behind this comes from Shanghai Wutongshu High-Tech Co., Ltd., which was consolidated into the group in 2025. In last year's annual report, it was this computing power company, established less than two years ago, that single-handedly dRAGged LuoMan from the brink of barely breaking even back onto a nARRative track of "substantial growth and a turnaround from loss to profit." Now, this private placement is clearly intended to extend the story of being "sustained by computing power" for a while longer.

293 Million Yuan Private Placement Continues to Bet on Computing Power

To underStand LuoMan's private placement today, one must revisit the controveRSIal cross-border acquisition in 2025.

In September 2025, LuoMan announced its intention to acquire a 39.2308% stake in Wutongshu for 196 million yuan in cash and bring it into the consolidated financial statements as a controlled subsidiary by controlling its board of directors. In November of the Same year, Wutongshu completed its industrial and commercial registration change and was officially consolidated.
Image source: Tianyancha APP

At that time, the market was not optimistic about the prospects of this AIDC computing power infrastructure service provider, which was established in December 2023 and had only seven employees that year. However, a performance commitment attached to the deal made the transACTion seem well-founded: Wutongshu's audited non-recurring net profit was no less than 120 million yuan, 130 million yuan, and 150 million yuan for 2025, 2026, and 2027, respectively.

Facts have proven that this VAM was not empty talk. The month the equity delivery was settled, Wutongshu initiated its "order harvesting mode." In December 2025, Wutongshu successively signed three computing power sales and service contracts with Beijing Guangma Software Co., Ltd., Tianjin Maoyuan Equipment LeASIng Co., Ltd., and China Merchants Zhirong supply chain Service Co., Ltd., with a total contract value of 604 million yuan.
Image source: Compiled by the author based on listed company announcements

More imaginative was the strategic cooperation agreement signed in the same month with Sichuan Tianfuyun Data Technology Co., Ltd. Centering on the "East Data, West Computing" and "integration of computing power and electricity" initiatives, the two parties agreed to advance a computing-electricity integration project with a total Investment scale of nearly 60 billion yuan for Sichuan Energy Group, planning to build a 100,000-card computing power cluster with a supporting 1GW new energy installation. The first phase of the 20,000-card cluster is scheduled to be operational in the first half of 2027. As the controlling shareholder, LuoMan will undoubtedly be a significant beneficiary of this super project.
Image source: Wutongshu's official WeChat account

The consolidation effect was quickly reflected in the financial statements. The 2025 annual report showed that LuoMan's annual revenue reached 1.886 billion yuan, a year-on-year surge of 174.18%; its net profit attributable to the parent company was 54.3819 million yuan, successfully achieving a turnaround from loss to profit. Among this, the AI computing power segment contributed 870 million yuan in revenue, accounting for 46.12% of total revenue, surpassing urban lighting for the first time and becoming the company's largest business segment.

Against this backdrop, the 293 million yuan private placement looks more like a strategic reInforcement following the momentum. LuoMan stated that the raised funds will be used to purchase high-performance AI computing power servers and related supporting facilities, to assemble large-scale AI training and inference clusters by leasing standard data center computer rooms, and to provide intelligent computing power services to telecom operators, large internet enterprises, cloud vendors, large model enterprises, and government and enterprise CLIents.

An industry insider familiar with the construction of computing power centers pointed out: "Looking at the private placement project, LuoMan is thinking about extending from simply doing computing power equipment integration and delivery to building and owning intelligent computing power clusters upstream, and providing continuous computing power rental services. This means the revenue model will shift from one-time reCognition, earning hardware margins and integration fees, to instaLLMent-based computing power rental income and continuous operational cash flow."

Lighting Stalls, Computing Power Provides a Backstop

The reason why LuoMan is so eager to increase its bet on computing power is precisely hidden within the structure of its 2025 annual report.

Looking at the revenue composition, the differentiation among the company's four major segments is extremely obvious: the AI computing power segment generated 870 million yuan, accounting for 46.12%; the urban lighting segment was only 397 million yuan, accounting for 21.05%, a year-on-year decline of 6.10%; the digital intelligent energy segment brought in 255 million yuan, and the digital culture and entertainment segment, 362 million yuan. Previously, urban Landscape lighting projects once contributed over 70% of LuoMan's revenue. But with the tightening of local government debt constraints and stricter approval of non-essential municipal projects like landscape lighting, the traditional lighting engineering market has long bid farewell to its golden age—in 2025, the lighting segment's revenue declined by another 6.10% year-on-year. Although its gross margin slightly increased to 35.95%, its volume can no longer support the growth narrative of a listed company.
Image source: Announcement / LuoMan Co., Ltd. 2025 Annual Report

Even more brutal figures lie in the quality of profit. The financial report shows that Wutongshu, the main entity for the computing power business, achieved annual revenue of 1.131 billion yuan in 2025, with an audited non-recurring net profit of approximately 175 million yuan. Compared against the acquisition's performance commitment of 120 million yuan in non-recurring net profit attributable to the parent company for the year, the actual completion rate was 145.51%, exceeding the promised profit by 54.6117 million yuan. Calculated based on LuoMan's 39.2308% shareholding ratio, Wutongshu contributed an investment income of approximately 52.392 million yuan to the listed company for the full year.
Image source: Announcement / LuoMan Co., Ltd. 2025 Annual Report

It is worth noting that after deducting this profit contribution, the combined net profit of the company's existing traditional businesses—lighting, digital technology, and energy—was only 1.9899 million yuan.

This means that without the backstop provided by the computing power business, LuoMan would have barely hovered around the break-even line in 2025. While the digital intelligent energy segment saw revenue growth, its gross margin was only 5.47%, a typical case of "increasing revenue without increasing profit"; the digital culture and entertainment segment had highlights, but its scale is insufficient to independently support the company's Valuation. The only segment capable of simultaneously boosting revenue scale and profit Resilience in a short time is AI computing power.

This also explains why management is in such a hurry to advance the private placement and heavily bet on intelligent computing power cluster operations. Against the backdrop of a visible ceiling for the traditional lighting business and new businesses not yet robust enough to stand alone, computing power has become the most realistic, and perhaps the only, breakout path for LuoMan.

Of course, this all-in bet is far from risk-free. The private placement still requires regulatory review, and after the project's completion, it will face challenges such as lower-than-expected computing power absorption, GPU supply chain fluctuations, and a high concentration of major customers. However, facing the Realistic choice of "old business cannot be defended, but the new business can sustain the company's life," LuoMan seems to have little room for hesitation.