Core Viewpoint - The company Kaizhong Co., Ltd. plans to acquire 60% equity of Anhui Tuosheng Automotive Parts Co., Ltd. through a combination of issuing shares and cash payment, which may constitute a significant asset restructuring [1][4]. Group 1: Acquisition Details - On November 21, Kaizhong signed a letter of intent with nine counterparties to acquire 60% of Anhui Tuosheng, with the transaction price based on an asset valuation report from a qualified evaluation agency [4]. - The company intends to raise funds from no more than 35 specific investors to finance the acquisition, with all proceeds allocated to the transaction [4]. - The acquisition is still in the planning stage, requiring approval from the board, shareholders, and regulatory authorities, indicating uncertainty in finalizing the deal [4]. Group 2: Strategic Importance - The acquisition is seen as a strategic move for Kaizhong to address intense industry competition and integrate its supply chain [6]. - Kaizhong specializes in automotive chassis suspension damping components and lightweight pedal assemblies, holding a leading position in technology and a second-place market share in the domestic market [6]. - The company has experienced a slowdown in growth due to limited market size and increasing competition, necessitating the search for new growth avenues [6]. Group 3: Market Potential - The NVH (Noise, Vibration, and Harshness) damping and sealing sector presents broader development opportunities compared to Kaizhong's current focus [7]. - Anhui Tuosheng has an annual output value exceeding 500 million yuan, specializing in rubber-based NVH damping and sealing components [8]. - The merger is expected to allow Kaizhong to expand its product line into the NVH field, enhancing its service offerings to automotive manufacturers and increasing negotiation power and business stickiness [11].