HUALI(SH:603038) Xin Lang Zheng Quan·2026-01-22 09:04Core Viewpoint - The recent acquisition attempt by Huali Co., Ltd. to purchase a 19% stake in Shenghui Cleanliness has drawn regulatory scrutiny and market attention due to its low pricing and the company's previous failed acquisitions in diverse sectors [1][9]. Group 1: Acquisition Details - Huali Co., Ltd. announced on January 16 that it plans to acquire a 19% stake in Shenghui Cleanliness for HKD 47.5 million, at a price of HKD 0.128 per share [1]. - Following the announcement, the Shanghai Stock Exchange issued an inquiry letter, leading to a decline in Huali's stock price by 5.39% to CNY 18.61 per share, with a total market capitalization dropping to CNY 5 billion [1]. - This acquisition is classified as a strategic investment aimed at achieving synergy in internationalization, intelligence, and marketization [1]. Group 2: Previous Acquisition Attempts - Huali Co., Ltd. has made three cross-industry acquisition attempts in the past year, indicating a significant expansion in the sectors it is targeting [1][9]. - The first attempt was in September 2024, where Huali aimed to acquire 51% of Suzhou Shangyuan Intelligent for CNY 358 million, but faced regulatory issues due to negative cash flow and high valuation [4]. - The second attempt occurred in October 2025, targeting a 51% stake in Beijing Zhongke Huilian Technology, which was later terminated due to a lack of consensus on key terms [6]. Group 3: Financial Performance - Huali Co., Ltd. reported a revenue of CNY 445.17 million for the current reporting period, reflecting an 83.06% increase year-on-year, and a total profit of CNY 55.21 million, up 191.16% [7]. - The net profit attributable to shareholders was CNY 28.70 million, a 73.84% increase, while the cash flow from operating activities showed a negative net amount of CNY 89.60 million, indicating financial pressure [7][8]. - The financial performance of Shenghui Cleanliness also raised concerns, with a revenue of CNY 359 million for the first half of 2024, a 10.14% increase, but a net profit decrease of 21.78% [8]. Group 4: Regulatory Concerns - The inquiry from the Shanghai Stock Exchange focuses on the clarity of Huali's acquisition logic, the appropriateness of the acquisition pace, and the management of insider information related to stock trading [9]. - The inquiry also requires Huali to disclose the details of previous acquisitions and terminations, including key timelines and the range of individuals who were privy to insider information [9].