CTCG(SH:600358) Sou Hu Cai Jing·2025-05-17 04:10Core Viewpoint - ST United is planning to acquire part or all of the shares of Jiangxi Runtian Industrial Co., Ltd. through a combination of issuing shares and cash payment, which may help alleviate investor concerns and stabilize confidence, but challenges remain in transforming the mature bottled water business into a sustainable growth model [2][6]. Company Summary - ST United has reported a cumulative loss of over 89 million yuan since 2023, indicating ongoing financial struggles [6]. - The transaction involves major shareholders Jiangxi Maitong Health Beverage Development Co., Ltd. and Jiangxi Runtian Investment Management Co., Ltd., with Jiangxi Maitong being a wholly-owned subsidiary of ST United's controlling shareholder, Jiangxi Provincial Tourism Group [3]. - Runtian has received significant investment, including a 200 million yuan Series A round from SoftBank China Venture Capital in 2007, but has since shifted towards local resource integration under state control [8]. Industry Summary - The bottled water market in China is highly competitive, dominated by major players such as Nongfu Spring and Yibao, which together hold approximately 58.6% of the market share [10]. - Runtian ranks among the top ten in China's beverage industry for both packaged drinking water and natural mineral water, with a sales network covering 22 provincial-level administrative regions and exports to Hong Kong, Macau, and Singapore [10]. - Despite its regional advantages, Runtian faces significant challenges in national expansion due to fierce competition from larger brands, leading to a decline in market share [10].