Compal divides server business and cultivates Yunrui Technology

Compal (2324) accelerated the adjustment of its AI business layout and decided to transfer the R&D and sales business of its Infrastructure Solutions Business Group (ISBG) to its wholly-owned subsidiary Yunrui Intelligent Technology in a split manner. In the future, Yunrui Technology will focus on the cloud infrastructure business, while Compal will focus on edge AI devices and smart systems, and retain the server manufacturing business. Through professional division of labor, it will strengthen the dual growth engines of cloud infrastructure and edge AI.

Compal pointed out that the base date for this split is tentatively set as December 31, 2026. The operating value of the split transfer is calculated based on assets minus liabilities, which is approximately NT$600 million. Compal will obtain 60 million Yunrui Technology common shares at a price of NT$10 per share. Since Yunrui Technology is a 100%-owned subsidiary of Compal, the value of the equity acquired through the split is equivalent to the operating value, and the related businesses have maintained normal operations, so it will not affect the equity of Compal’s shareholders.

In response to this organizational adjustment, Compal said that the server business has different characteristics from the existing PC and smart device businesses in terms of product technology, business development and operating model. In order to strengthen the professional division of labor and improve operational efficiency, it has decided to transfer the ISBG R&D and sales business to Yunrui Technology, while production and manufacturing will still be handled by Compal.

Through an independent operating structure, Yunrui Technology will have a more flexible operating mechanism and resource allocation capabilities, and establish an operating model that is closer to the characteristics of the server industry in terms of decision-making efficiency, performance management, talent incentives and customer services, accelerate business expansion and enhance market competitiveness.

In terms of AI server layout, Compal pointed out that the rapid development of AI technology in recent years has driven strong growth in server market demand. The company has continued to deepen related business layout, and its product scope has expanded from boards to complete machine and cabinet solutions. Its customers include enterprise users, new cloud computing operators (NeoCloud) and large cloud service providers (CSP). It has also actively expanded the markets in Taiwan, North America and Vietnam to demonstrate the growth momentum of the server business.

Looking forward to subsequent development, Compal said that after the split is completed, Yunrui Technology will focus on the cloud infrastructure (Cloud Infrastructure) business layout, while Compal will continue to develop high value-added areas such as edge AI devices (Edge AI Devices) and intelligent systems (Intelligent Systems). It will also be responsible for the production and manufacturing of server products and continue to expand global manufacturing and delivery capabilities.