HANGZHOU GAOXIN(SZ:300478) Tai Mei Ti A P P·2025-07-03 10:23Core Viewpoint - The recent transfer of control of Hangzhou Gaoxin (300478.SZ) to Beijing Jirong Weiye Energy Technology Co., Ltd. marks a significant shift in the capital market, indicating the ambitions of Jirong Energy in the energy chemical sector and the urgency of the current controlling shareholder to exit the company [1][2]. Group 1: Transaction Details - The transaction is based on an overall valuation of 2.6 billion yuan for the listed company, with a premium of approximately 28.9% compared to the market capitalization of 2.017 billion yuan as of July 3 [1][2]. - The deal involves Jirong Weiye acquiring 19.03% of the shares from the current controlling shareholder, Donghang Group, and transferring the actual control of the company to Jirong Weiye [1][2]. Group 2: Company Performance and Strategy - Jirong Energy has shown significant growth, with a projected 100% increase in production capacity and a 185% increase in output for 2024 compared to 2023, alongside a compound annual growth rate of 144% in revenue over four years [5]. - The strategic goal set by Lin Rongsheng for Jirong Energy includes expanding from the western region to nationwide coverage and radiating to Eurasia, indicating a need for substantial funding, which the listed company can provide [5]. Group 3: Historical Context and Challenges - Hangzhou Gaoxin has faced challenges with continuous losses in net profit since 2018, despite some revenue growth in 2025, which may have contributed to Donghang Group's willingness to transfer control [7][11]. - The company has experienced frequent changes in control over the past six years, with the current controlling shareholder, Hu Min, having taken over in 2022 but failing to turn around the company's financial performance significantly [10].