HONGMING(SZ:301105) IPO日报·2025-05-23 10:21Core Viewpoint - The company Guangdong Hongming Intelligent Co., Ltd. is planning to acquire 83% of Shenzhen Chisu Automation Equipment Co., Ltd. for approximately 151 million yuan, marking its first major asset restructuring since going public [1][5]. Group 1: Acquisition Details - The acquisition involves a cash transaction of 151 million yuan, which is expected to constitute a significant asset restructuring [1][5]. - Shenzhen Chisu, established in 2012, specializes in the research and sales of automation equipment, including automatic screw locking machines and related software [3][4]. - Following the acquisition, Shenzhen Chisu will become a subsidiary of Hongming and will be included in its consolidated financial statements [4][5]. Group 2: Financial Performance - Since its IPO in December 2022, Hongming has experienced declining financial performance, with revenues dropping from 3.08 billion yuan in 2020 to an estimated 1.75 billion yuan in 2024 [9]. - The net profit has also decreased significantly, with a loss of 170 million yuan in 2023 and a further decline in Q1 2025 [9]. - The company attributes the decline in performance to reduced demand from end customers, leading to lower sales and increased competition in the packaging machinery industry [9]. Group 3: Strategic Implications - The acquisition is seen as a strategic move to enhance the company's operational scale and performance amid declining revenues and profits [10]. - The cash transaction will represent a significant cash outflow, but the company has sufficient liquidity, with 291 million yuan in cash and a low debt ratio of 10.09% as of Q1 2025 [10].