WINALL(SZ:300087) Xin Lang Cai Jing·2025-11-21 00:26Core Viewpoint - The announcement of a partial tender offer by Zhongzhong Group for 189 million shares of Quanyin High-Tech, representing 20% of its total issued shares, is a strategic move to address potential competition issues and strengthen its position in the agricultural seed industry [1][2]. Group 1: Tender Offer Details - Zhongzhong Group plans to acquire 189 million shares of Quanyin High-Tech at a price of 11.85 CNY per share, totaling an estimated funding requirement of no more than 2.245 billion CNY [1]. - The tender offer price represents a premium of approximately 16.63% over Quanyin High-Tech's closing price of 10.16 CNY per share as of November 20 [1]. - Upon completion of the tender offer, Zhongzhong Group could hold up to 384 million shares, accounting for approximately 40.51% of Quanyin High-Tech's total share capital [1]. Group 2: Background on Zhongzhong Group - Zhongzhong Group, established in 1978, is a wholly-owned subsidiary of China National Chemical Corporation and is recognized as a leading enterprise in agricultural industrialization [1]. - The company specializes in the research, production, processing, and marketing of crop seeds, covering major crops such as rice, corn, wheat, and vegetables [1]. Group 3: Competition and Commitment - The tender offer is closely related to Zhongzhong Group's commitment to resolve competition issues with Quanyin High-Tech, which arose after Zhongzhong became the controlling shareholder in 2021 [2]. - Zhongzhong Group had previously disclosed potential overlaps in business operations, particularly in the rice and wheat seed sectors, and committed to resolving these issues within five years [2]. Group 4: Financial Performance - Quanyin High-Tech reported a revenue of 1.934 billion CNY for the first three quarters of the year, a year-on-year decline of 5.90%, with a net loss of 180 million CNY, an increase in losses by 113.45% [3]. - The company aims to achieve a revenue target of 5 billion CNY and a net profit of 300 million CNY by 2025, requiring a significant increase in Q4 performance to meet these goals [3]. - Historically, Quanyin High-Tech has never achieved its highest quarterly revenue or profit targets in Q4, with previous highs of 2.654 billion CNY in revenue and 263 million CNY in net profit [3].