SG(SH:600734) Chang Jiang Shang Bao·2025-11-27 08:27Core Viewpoint - The stock price of Shida Group (600734.SH) experienced significant volatility, leading to a trading halt after a rapid decline, following a period of five consecutive trading days of price increases totaling 60.99% [1][2]. Group 1: Stock Performance - Shida Group's stock price rose from 3.82 CNY per share to 6.15 CNY per share over five trading days, marking a cumulative increase of 60.99% [1]. - On November 27, the stock opened low, quickly surged, and then fell to the daily limit, with a trading halt occurring just eight minutes after the market opened, resulting in a halt order amounting to 1.012 billion CNY [1]. Group 2: Company Announcements - During the five trading days of price increases, Shida Group issued four announcements regarding abnormal stock trading, emphasizing that there were no significant changes in its daily operations and no undisclosed major matters [2]. - On November 4, Shida Group announced plans to acquire 95% of Fujian Shuchan Ming Shang Technology Co., Ltd. for an estimated price of 185 million CNY [2][3]. Group 3: Acquisition Details - The acquisition of Fujian Shuchan Ming Shang is classified as a related party transaction, as both the controlling shareholder of Shida Group and the counterparty are controlled by Fujian Provincial Big Data Group [3]. - Fujian Shuchan Ming Shang reported revenues of 34.11 million CNY and a net profit of 3.96 million CNY for the entire year of 2024, with revenues reaching 59.69 million CNY and a net profit of 6.09 million CNY in the first seven months of 2025, achieving 150% of the previous year's revenue and 154% of net profit [3]. Group 4: Clarifications on Partnerships - Shida Group clarified that rumors regarding a partnership with Alibaba Cloud are unfounded, stating that no business cooperation has been initiated between the two parties [4][5]. - Despite earlier reports of a framework agreement signed in April 2025 between Shida Group and Alibaba Cloud, the company reiterated that the current collaboration rumors are not accurate [4]. Group 5: Financial Performance - Shida Group's financial performance has been under pressure, with revenues of 262 million CNY, 335 million CNY, and 309 million CNY from 2022 to 2024, reflecting year-on-year changes of -71.54%, 27.89%, and -7.99% respectively [5]. - The net profit for the same years was -97.58 million CNY, 37.20 million CNY, and 5.65 million CNY, with year-on-year changes of -114.14%, 138.12%, and -84.80% respectively [5]. - In the first three quarters of 2025, the company reported revenues of 135 million CNY, a year-on-year increase of 111.97%, but incurred a net loss of 87.57 million CNY, indicating a shift from profit to loss due to rising project costs [5]. Group 6: Strategic Outlook - Shida Group is seeking to overcome industry challenges through acquisitions and other strategic actions, with the success of these efforts remaining to be seen over time [6].