Zheng Quan Shi Bao Wang·2025-09-23 04:05Core Viewpoint - Xiangcai Co. is progressing with the absorption merger of Dazhihui through a share exchange, aiming to enhance its market position and operational capabilities in the competitive landscape of internet brokerage firms [1][2][3]. Group 1: Merger Details - The merger plan involves Xiangcai Co. issuing A-shares to all shareholders of Dazhihui, with a share exchange ratio of 1:1.27 [2]. - The transaction is subject to further board approvals and regulatory approvals, with due diligence and auditing nearly complete [1][2]. - Post-merger, Xiangcai Co.'s total share capital will increase to 5.153 billion shares, while the controlling shareholder's stake will decrease from 40.37% to 22.4% [3]. Group 2: Strategic Implications - The merger is seen as a strategic move to overcome operational challenges faced by both companies, leveraging their long-term cooperation [1][4]. - Xiangcai Co. aims to become the third internet brokerage in the A-share market, following the successful models of other firms like Dongfang Caifu and Zhihui [3]. - The merger is expected to enhance customer acquisition through Dazhihui's user base of approximately 10 million monthly active users, potentially improving Xiangcai Co.'s performance [4]. Group 3: Industry Context - The merger reflects a broader trend of consolidation among small and medium-sized brokerages, which are seeking to enhance their competitiveness through strategic mergers and technology integration [4][5]. - Xiangcai Co. is focusing on a light-asset strategy, emphasizing financial technology and wealth management to differentiate itself in a competitive market [5]. - The integration of Dazhihui's advanced technology and user ecosystem is anticipated to create a new model of "AI advisory brokerage," enhancing the overall service capabilities of Xiangcai Co. [5].