LZRJ(SH:688588) Tai Mei Ti A P P·2025-11-12 00:56Group 1 - Lingzhi Software (688588.SH) has resumed trading and announced a merger plan to acquire 100% equity of Kaimiride (Suzhou) Information Technology Co., Ltd. through a combination of issuing shares and cash payment, along with raising supporting funds [2][4] - This marks the second major acquisition attempt by Lingzhi Software in three years, shifting focus from overseas to the domestic market, driven by challenges related to reliance on Japanese business and the need for domestic growth [2][3] - Kaimiride, an IT solutions provider focused on the domestic banking sector, is currently facing performance declines and industry price competition, raising questions about the potential synergies from the merger with Lingzhi Software [2][5] Group 2 - Lingzhi Software's previous acquisitions included a cash purchase of 155 million yuan for Zhiming Software Holding (BVI) in late 2023, and a real estate acquisition in Japan for approximately 198 million yuan in 2024, increasing its dependence on the Japanese market [3] - The company's revenue from Japanese operations exceeded 90% in 2024, but this reliance has led to significant volatility in net profit due to fluctuations in the yen exchange rate [3][5] - The shift to domestic acquisitions aims to enhance the company's revenue from domestic financial institutions and reduce risks associated with the Japanese market [3][5] Group 3 - Kaimiride, established in 2013, serves about 70% of large and medium-sized financial institutions in China and holds the largest market share in the banking IT solutions sector [6] - The company has faced challenges in its listing attempts, with its revenue and net profit showing a downward trend from 2023 to 2025, indicating operational difficulties [6][10] - The competitive landscape in the financial IT sector is intensifying, with companies like Kaimiride experiencing pressure from aggressive pricing strategies as firms vie for market share [9][10]