Core Viewpoint - The stock of Guosheng Technology (603778) surged by 155.85% in November, making it the top performer in the A-share market, driven by a significant rise in the photovoltaic sector and a proposed acquisition of 100% equity in Fuyue Technology for 241 million yuan, despite ongoing financial losses [1][3][5]. Group 1: Stock Performance - Guosheng Technology achieved a monthly increase of 155.85%, leading the top ten stocks in the A-share market for November [3]. - The stock price rose significantly from a low of 3.33 yuan per share on October 13, with a total increase of 231.14% over 34 trading days [3]. - Other notable stocks with over 100% increase include HeFu China and Huasheng Lithium Battery [3]. Group 2: Acquisition Details - The company announced plans to acquire 100% of Fuyue Technology for 241 million yuan, with the valuation based on both market and income approaches, ultimately favoring the income approach [3][4]. - The acquisition is expected to create approximately 220 million yuan in goodwill on the consolidated balance sheet post-transaction [3]. - Fuyue Technology specializes in high-precision new lithium battery shell materials, with major clients in the new energy battery sector [4]. Group 3: Financial Performance - Guosheng Technology has faced continuous losses since 2020, with net profits remaining negative in the first three quarters of this year [5][6]. - Revenue for the first three quarters of this year was approximately 450 million yuan, a significant decline of 57.79% year-on-year [6]. - The company’s financial struggles are attributed to policy impacts in the photovoltaic industry, reduced market demand, and declining sales [6]. Group 4: Shareholder and Management Issues - The controlling shareholder, Guosheng Energy, has pledged 46.5 million shares, representing 42.94% of its holdings, to support the company's operations [7]. - Concerns regarding the high percentage of pledged shares raise risks for the company, particularly if the stock price declines [8]. - Guosheng Energy holds approximately 16.49% of Guosheng Technology's total shares, with significant pledges impacting financial stability [8]. Group 5: Regulatory Scrutiny - The company received an inquiry from the Shanghai Stock Exchange regarding the fairness of the acquisition transaction, including the assessment parameters and the rationale behind the valuation [9][10]. - The inquiry also addressed potential conflicts of interest and the management of Fuyue Technology post-acquisition [10][11]. - Guosheng Technology is required to respond to the inquiry within five trading days, detailing the acquisition process and any insider information management [11].