Bangyan Technology (SH:688132) Guo Ji Jin Rong Bao·2025-05-27 09:20Core Viewpoint - The company, Bangyan Technology Co., Ltd., announced the termination of its significant asset restructuring plan to acquire 100% of Shenzhen Xingwang Xintong Technology Co., Ltd., leading to a sharp decline in its stock price and market value [1][3]. Group 1: Acquisition Details - The acquisition was initially planned to be executed through a share issuance and cash payment, with a proposed price of 13.94 yuan per share, representing a 30% discount to the market price [3]. - The transaction involved 16 parties, including the largest shareholder, Jinzhen Co., which holds an 18.25% stake [3]. - The acquisition was characterized as a "snake swallowing an elephant" deal, given the disparity in revenue and profit between the two companies [3][4]. Group 2: Financial Performance - Bangyan Technology reported a revenue of 181 million yuan and a net loss of 52 million yuan for 2023, while Xingwang Xintong achieved a revenue of 632 million yuan and a net profit of 47 million yuan [3][4]. - The acquisition was expected to enhance Bangyan Technology's civilian product business and achieve a performance commitment of no less than 180 million yuan in net profit over three years [3]. Group 3: Strategic Implications - The termination of the acquisition is seen as a setback for Bangyan Technology's strategy to diversify its revenue sources, which have been heavily reliant on military contracts, with nearly 70% of its revenue coming from the military sector as of December 31, 2023 [4][5]. - The acquisition was viewed as a critical step for the company to enter the civilian market, which would complement its existing military business [4][5]. - The loss of Xingwang Xintong's established customer base, including major clients like BYD and Huawei, complicates the company's goal of achieving civilian revenue surpassing military revenue by 2028 [5].