WINALL(SZ:300087) Tai Mei Ti A P P·2025-11-21 08:33Core Viewpoint - Zhongzhong Group plans to acquire 20% of Qianyuan High-Tech's shares for 2.245 billion yuan, increasing its stake to 40.51%, reflecting confidence in the company's future prospects [1][3]. Group 1: Acquisition Details - Zhongzhong Group intends to issue a partial tender offer to all shareholders of Qianyuan High-Tech, targeting 189 million shares, which represents 20% of the total issued shares [2]. - The tender offer price is set at 11.85 yuan per share, which is approximately 16.63% higher than the market price of 10.16 yuan as of November 20 [2]. - Following the acquisition, Zhongzhong Group will hold a maximum of 384 million shares, equating to 40.51% of Qianyuan High-Tech's total share capital [3]. Group 2: Industry Context - Zhongzhong Group is a leading state-owned enterprise in the seed industry, managing the seed business of Syngenta Group in China, and has a broad portfolio covering rice, corn, wheat, vegetables, and oilseeds [4]. - Qianyuan High-Tech, known as the "first stock in the seed industry" on the Growth Enterprise Market, has a leading position in hybrid rice technology and operates in over 20 countries [4]. Group 3: Competitive Landscape - There is a degree of overlap in the agricultural seed business between Zhongzhong Group and Qianyuan High-Tech, particularly in the domestic rice and wheat seed markets [5]. - The deadline for resolving competitive issues between the two companies is approaching, making this acquisition a crucial step in fulfilling previous commitments to address competition [6]. Group 4: Financial Performance - Qianyuan High-Tech reported a revenue of 1.934 billion yuan for the first three quarters of 2025, a year-on-year decline of 5.90%, with a net loss of 180 million yuan, a significant increase of 113.45% in losses compared to the previous year [6]. - The company has faced challenges due to falling seed prices and increased competition, prompting a need for improved operational conditions, which Zhongzhong Group may help facilitate [6].