Core Viewpoint - A Hong Kong-based embodied intelligence company, UBTECH, is set to acquire a controlling stake in Fenglong Co., Ltd. through a combination of agreement transfer, voting rights waiver, and tender offer, with a total investment of 1.665 billion yuan [1][3]. Group 1: Acquisition Details - UBTECH plans to acquire approximately 93.98 million shares of Fenglong, representing about 43% of the company's total shares [3]. - The agreement includes the transfer of 65.53 million unrestricted shares (29.99% of total shares) from Fenglong's major shareholder, Chengfeng Investment, to UBTECH [3]. - The share transfer and tender offer price is set at 17.72 yuan per share, reflecting a slight discount compared to Fenglong's closing price of 19.68 yuan on December 17 [3][4]. Group 2: Financial Performance - UBTECH's projected revenues for 2022 to 2024 are approximately 1.008 billion yuan, 1.056 billion yuan, and 1.305 billion yuan, with net losses of about 989.7 million yuan, 1.265 billion yuan, and 1.16 billion yuan respectively [4]. - Fenglong's revenues for the same period are expected to be around 587 million yuan, 433 million yuan, and 479 million yuan, with net profits fluctuating significantly [5]. - In the first three quarters of the current year, Fenglong reported revenues of approximately 373 million yuan, a year-on-year increase of 9.47%, and a net profit of about 21.52 million yuan, a substantial increase of 1714.99% [5]. Group 3: Strategic Implications - The acquisition aligns with the long-term strategic goals of both companies and is expected to create synergies that enhance UBTECH's humanoid robot development and commercialization [6]. - The integration of UBTECH's advanced humanoid robot technology with Fenglong's manufacturing capabilities and supply chain is anticipated to improve product competitiveness and market reach [6]. - The acquisition reflects a growing trend in the capital market for embodied intelligence companies, with recent activities including other A-share acquisitions and IPO preparations in the sector [6].
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