Xin Jing Bao·2025-06-11 08:49Core Viewpoint - Hangzhou Steam Turbine Co., Ltd. (Hangzhou Turbine B) is progressing towards a share swap merger with Hailianxun Technology Co., Ltd. to transition from B-share to A-share, aiming to enhance financing channels and improve company valuation and liquidity [2][4][5]. Group 1: Merger Details - The temporary shareholders' meeting of Hangzhou Turbine B approved the merger proposal, where Hailianxun will absorb Hangzhou Turbine B, leading to the termination of Hangzhou Turbine B's listing and legal status [2]. - The share swap price for Hangzhou Turbine B is set at 9.56 CNY per share, reflecting a 34.46% premium over the average trading price of 7.11 CNY in the previous 20 trading days [4]. - The total share capital of Hangzhou Turbine B is 1.175 billion shares, with a swap ratio of 1:1 for shares exchanged with Hailianxun [4]. Group 2: Business Context - Hangzhou Turbine B specializes in designing and manufacturing industrial steam turbines and gas turbines, along with providing related services [4]. - The company has faced limitations in financing due to the constraints of the B-share market, which has affected its liquidity and valuation compared to A-share peers [4][5]. Group 3: Financial Performance - Hangzhou Turbine B's revenue has shown continuous growth over the past three years, reaching 5.519 billion CNY in 2022, 5.924 billion CNY in 2023, and projected at 6.639 billion CNY in 2024 [7]. - However, the company's net profit attributable to shareholders has fluctuated, with a decline noted in 2023 [7]. - The gross profit margin of the main business has been declining, with figures of 26.58%, 23.89%, and 19.21% from 2022 to 2024, respectively [7][8].