NEWTON RES (01231) has announced that on 3 September 2026, its indirect wholly-owned subsidiary, Xiangli Investment Co., Ltd. (Xiangli), entered into a public cloud service agreement with an independent third-party cloud service provider. Under the terms of the deal, the vendor will grant Xiangli access to high-performance graphics processing unit (GPU) computing power via the public cloud for a period of 36 months, aimed at supporting the group's expansion into cloud computing, artificial intelligence (AI), and related technology services. GPUs are electronic circuits designed to accelerate the rendering of images, videos, and graphics through high-speed mathematical calculations.

The service provider, a company incorporated in Singapore, focuses on delivering cloud computing and associated technology solutions. The group's core operations currently revolve around resource-related activities, which not only involve the procurement and supply of iron ore and other commodities but also encompass value-added services such as supplier management and logistics support. As part of its business diversification strategy, NEWTON RES intends to venture into cloud computing and AI-focused operations.

Leveraging the cloud services procured under this agreement, the group plans to offer cloud computing capacity and related technical services to corporate clients. The board believes that this arrangement will enable the group to secure GPU computing power over the next three years without incurring the capital expenditures and maintenance costs typically associated with directly purchasing and managing the underlying GPU hardware and servers. Consequently, this approach supports the expansion of the group's cloud computing, AI, and related service offerings while maintaining a lower risk profile.