HSSM(SZ:002290) Sou Hu Cai Jing·2025-11-26 07:56Core Viewpoint - The sale of 18% of Suzhou Hesheng New Materials' shares by founder Zhao Dongming to Shanghai Moer Zhixin for 1.505 billion yuan highlights the challenges faced by traditional manufacturing in China and the opportunistic nature of capital players in the current market [1][3]. Group 1: Company Background - Suzhou Hesheng New Materials, founded by Zhao Dongming in 2008, specializes in composite materials for home appliances and has established itself as a hidden champion in its niche, with revenue growing from several hundred million to over 2 billion yuan [4][6]. - The company went public in 2009, and Zhao initially held 56.73% of the shares, making him the dominant figure in the company [6]. - However, since 2016, Zhao has gradually divested control, ultimately regaining it under challenging circumstances after the previous controlling entity faced legal issues [8][10]. Group 2: Financial Performance - Hesheng's revenue from 2021 to 2024 has shown minimal growth, with figures of 2.13 billion, 2.31 billion, 2.25 billion, and 2.48 billion yuan, while net profit has fluctuated between 120 million and 180 million yuan, indicating stagnation in growth [10][12]. - The gross profit margin has remained around 15%, suggesting that the company has hit a growth ceiling typical of traditional manufacturing [10]. Group 3: Transaction Details - Zhao Dongming's decision to sell his shares for 33.71 yuan each, totaling 1.505 billion yuan, reflects a strategic exit from a sector facing declining profitability [1][12]. - After taxes and fees, Zhao is expected to net over 1.2 billion yuan, providing him with significant financial security for the future [12]. Group 4: Buyer Profile - The buyer, Moer Zhixin, was established in August 2025 with a registered capital of 755 million yuan, yet it is acquiring Hesheng for 1.505 billion yuan, primarily funded through bank loans [13][15]. - The acquisition strategy involves leveraging limited own capital to facilitate a larger purchase, typical of capital players seeking to integrate resources and increase valuations [15][19]. Group 5: Industry Implications - The shift towards semiconductor-related ventures by Hesheng, including partnerships in AI chips and ARM server technology, indicates a strategic pivot to capitalize on current market trends [15][19]. - However, concerns arise regarding the buyer's lack of experience in managing a manufacturing enterprise, which could lead to conflicts between operational needs and capital-driven strategies [19][25]. Group 6: Future Outlook - The success of this acquisition will depend on whether Moer Zhixin can effectively integrate capital with Hesheng's operational needs, as traditional manufacturing faces significant challenges in transitioning to new business models [25][29]. - The case of Hesheng serves as a cautionary tale for other traditional manufacturers, emphasizing the need for a balanced approach between capital investment and operational integrity [29][31].