Core Viewpoint - The acquisition plan of Hailun Zhe to expand its market share in emergency drainage has been hindered by the termination of the agreement to acquire Hunan Huaxun's equity, which was initially aimed at enhancing the company's capabilities in the emergency drainage sector [1][3]. Group 1: Acquisition Details - Hailun Zhe signed a cooperation agreement in September 2024 to acquire control of Hunan Huaxun, which specializes in emergency drainage products, but after over a year of negotiations, the parties could not reach an agreement on key terms [2][3]. - The termination agreement confirms that there are no disputes regarding the original agreement and that both parties will adhere to confidentiality obligations [3]. Group 2: Financial Performance - In the third quarter of 2025, Hailun Zhe reported a revenue of 1.29 billion yuan, a year-on-year increase of 28.75%, and a net profit attributable to shareholders of 176 million yuan, up 32.57% year-on-year [1]. Group 3: Industry Context - The emergency industry is currently benefiting from policy incentives, with a target to exceed 1 trillion yuan in industry scale by 2025, aiming to develop over 10 leading enterprises with international competitiveness [4]. - As of August 2024, there has been a significant increase in demand for emergency products, particularly drainage vehicles, with a total tender amount of approximately 2.9 billion yuan [4]. Group 4: Product Development - Hailun Zhe is focusing on developing small, high-capacity urban drainage products and has made advancements in electric emergency power supply vehicles and robotic insulated boom vehicles, with over 110 units signed for a total of 154 million yuan [5]. - The company holds a 22.93% stake in Guangdong Xinyu Intelligent Equipment Co., which has seen a 89% year-on-year increase in new orders, primarily related to energy storage [6].