Flower King Eco-Engineering(SH:603007) Zhong Zheng Wang·2025-09-01 07:37Core Viewpoint - *ST Huawang has completed the acquisition of 50.11% equity in Niwei Power, integrating it into its consolidated financial statements, marking a strategic shift towards the new energy sector [1][2]. Group 1: Business Transformation - *ST Huawang has been focusing on the ecological landscape sector for over 20 years, but has faced challenges such as reduced project orders and shrinking profit margins in its traditional landscaping business [2]. - The company has initiated a restructuring process to divest non-performing assets and improve its asset structure, leading to a rapid increase in the proportion of liquid assets [2]. - The management has set a strategic direction to embrace green principles and accelerate the transition to new productive forces, with a focus on new energy vehicle components [2]. Group 2: New Energy Sector Expansion - The acquisition of Niwei Power is seen as a crucial step for *ST Huawang to overcome the bottlenecks in its traditional landscaping business and align with the national "dual carbon" strategy [2]. - Niwei Power specializes in high-pressure metal fuel tanks, which are essential for the fuel efficiency and emission compliance of hybrid vehicles, and has established a strong market presence with major automotive brands [3]. Group 3: Diversified Business Layout - *ST Huawang has signed an agreement to purchase inertial sensor modules and related equipment, while also establishing new companies focused on MEMS sensor development, particularly for automotive applications [4]. - The company is expanding into the green energy sector by increasing its investment in Sichuan Tuo Wei Ju Neng Electric Power Co., enhancing its green low-carbon industry layout [4]. - The diversified approach aims to create a business matrix covering new energy vehicles, semiconductors, and energy storage, targeting key segments for competitive advantage [5]. Group 4: Synergistic Development - The company anticipates that its various business segments will benefit from synergies, enhancing growth momentum and resilience [5]. - The established supply chain relationships with automotive brands through Niwei Power will facilitate customer acquisition for the newly developed automotive-grade sensors [5]. - The integration of intelligent sensor technology into energy storage systems is expected to improve safety and energy efficiency, further solidifying *ST Huawang's competitive edge [5].