Core Viewpoint - The acquisition of 100% equity of Hangzhou Lanan Technology Co., Ltd. by Jiarong Technology is a strategic move amid declining performance and increasing accounts receivable, with a change in controlling shareholder to Xiamen Puyu Investment Partnership and Hu Dianjun as the new actual controller [2][4][10]. Group 1: Company Performance - Jiarong Technology's revenue peaked post-IPO at 6.75 billion yuan in 2021 but has since declined to 5.55 billion yuan in 2022 and 5.56 billion yuan in 2023, with net profit dropping from 1.49 billion yuan to 0.50 billion yuan during the same period [2]. - The company's accounts receivable have surged from 160 million yuan in 2019 to 616 million yuan by the end of 2024, constituting 27.58% of total assets [3]. - The company has repeatedly postponed the completion dates for its IPO fundraising projects, indicating operational challenges [3]. Group 2: Acquisition Details - The acquisition aims to transition Jiarong Technology towards resource recycling, aligning with national policy support for sectors like lithium extraction and battery recycling [4][15]. - Hangzhou Lanan, the target company, faced regulatory scrutiny and withdrew its IPO application due to financial irregularities, including issues with revenue recognition and internal controls [5][6]. - Despite its IPO failure, Hangzhou Lanan's valuation increased from 908 million yuan in 2021 to 1.28 billion yuan in 2025, although its revenue sharply declined in 2025 [6]. Group 3: Strategic Implications - The transaction is seen as a potential "backdoor listing" for Hangzhou Lanan, which may offer a quicker path to market compared to a traditional IPO [7]. - Hu Dianjun, the new controller, has extensive experience in capital operations and may seek to leverage Jiarong Technology as a platform for further investments [12][13]. - The merger is expected to create synergies between Jiarong Technology's wastewater treatment and Hangzhou Lanan's electrodialysis technology, although market skepticism exists regarding the financial health and operational integration of both companies [14][16].