Hua Xia Shi Bao·2025-10-01 07:40Core Viewpoint - The merger between Xiangcai Co. and Dazhihui marks a significant step in the integration of traditional brokerage firms and internet-based financial service providers in the A-share market, aiming to create a new business model that combines traffic and licenses [2][5]. Summary by Sections Merger Details - Xiangcai Co. plans to absorb Dazhihui through a share swap, with Xiangcai's share price set at 7.51 CNY and Dazhihui's at 9.53 CNY. Post-merger, Xiangcai's total shares will increase to 5.141 billion, and Dazhihui will cease to be listed. An accompanying financing plan of up to 8 billion CNY will focus on financial technology [3][4]. Market Reaction - The announcement has sparked enthusiasm in the secondary market, with Xiangcai's shares hitting the daily limit and Dazhihui seeing a rise of over 5% on the day of the announcement. This trend continued with further increases in share prices for both companies [4]. Business Synergy - The merger is expected to create significant synergies between Xiangcai's traditional brokerage services and Dazhihui's financial information services, enhancing the combined company's asset base and revenue. However, there are concerns about short-term profit fluctuations post-merger [5][9]. Industry Context - The merger is part of a broader trend of accelerated consolidation in the brokerage industry, with recent notable mergers including Guotai Junan with Haitong and Xibu Securities acquiring Guorong Securities. This reflects a strategic move to optimize resource allocation and enhance market competitiveness [6][9]. Historical Context - The collaboration between Xiangcai and Dazhihui is not new, having begun around 2020 with joint projects in financial data and technology. Their partnership aims to leverage Dazhihui's extensive user base and data capabilities to enhance Xiangcai's market position [7][8]. Performance Comparison - In terms of financial performance, both Xiangcai and Dazhihui faced challenges, with Xiangcai reporting a revenue of 1.144 billion CNY and a net profit of 142 million CNY, while Dazhihui reported a revenue of 379 million CNY but incurred a loss of 3.47 million CNY. The combined entity is expected to rank outside the top 30 in the industry post-merger [9].