Core Viewpoint - The recent updates regarding the control rights transaction of Changling Hydraulic indicate significant changes in the funding structure and actual controllers, with increased involvement from Jiangyin State-owned Assets [1][2][4]. Group 1: Transaction Details - The acquisition structure has been modified, with Jiangyin State-owned Assets' actual contribution expected to rise to 50.12% of the total transaction value, amounting to approximately 10.59 billion [3][4]. - The new partner, Chengxin Gongying, will contribute 2.75 billion, while the transfer of shares from Hexin Huilian is expected to yield around 5.36 billion [2][3]. - The transaction will involve three entities controlled by Jiangyin State-owned Assets, which will provide funding through direct and indirect means [3][4]. Group 2: Changes in Actual Controllers - The actual controllers of the company will change to include Jiangyin State-owned Assets, Hu Kangqiao, and Xu Lantao, reflecting a shift from the previous proposal where Hu Kangqiao was the sole controller [4][9]. - A new agreement among the parties will establish a unified action relationship to ensure collective decision-making in shareholder rights [4][6]. Group 3: Funding Sources and Responsibilities - The transaction will be supported by a 7.5 billion bank merger loan, with repayment sources including future dividends from the acquired company [8][12]. - Chengxin Gongying will act as a guarantor for the repayment of the merger loan, increasing its financial responsibility in the transaction [8][12]. Group 4: Regulatory Concerns and Market Implications - The Shanghai Stock Exchange raised concerns regarding the legitimacy of funding sources and the identification of actual controllers, leading to the revised transaction structure [9][10]. - The updated transaction plan aims to enhance investor protection in the secondary market while increasing Jiangyin State-owned Assets' responsibilities and control [14].

Core Viewpoint - Since 2025, control transactions of listed companies have become increasingly active, with a 140% increase in announcements compared to the same period last year, indicating a trend towards restructuring and transformation in various industries [1][2]. Group 1: Control Transactions Overview - As of June 2025, 72 listed companies disclosed announcements regarding control changes, up from 30 in the same period last year [1]. - In June alone, 22 companies announced control changes, compared to only 2 in June of the previous year [1]. - Among these transactions, 31 companies utilized voting rights arrangements, including voting rights abandonment and delegation, to achieve control [1]. Group 2: Company Characteristics - The 31 companies involved in control changes span 14 different industries, with notable representation from electronics, textiles, and machinery [2]. - The majority of these companies are small-cap private enterprises, with over 70% having a market capitalization below 5 billion [2]. - 15 of the 31 companies reported negative net profits for 2024, indicating poor performance, with 13 of these experiencing a year-on-year decline in net profit [3]. Group 3: Voting Rights Arrangements - Out of the 31 companies, 19 chose to abandon voting rights, while 11 opted for voting rights delegation [4][7]. - The average share transfer ratio for companies using voting rights abandonment is approximately 21.89%, while the average for those using voting rights delegation is about 11.68% [8][9]. Group 4: Transaction Pricing - Control transaction prices have seen an increase compared to last year, with typical prices for control ranging from 300 million to 1 billion, depending on the company's market conditions [12][15]. - The average transaction price for companies with total transaction amounts below 500 million is approximately 345 million, while those between 500 million and 1 billion average around 730 million [15]. - Notably, *ST Taihe's control transaction exhibited a high premium of 199.28%, while Suo Ao Sensor's transaction was at a discount of nearly 20% [19][21]. Group 5: Factors Influencing Pricing - Factors affecting control transaction pricing include the anticipated future value of the acquiring company's industry, existing company issues, and the original controlling shareholder's willingness to negotiate [24].