Core Viewpoint - The article discusses the challenges faced by publicly listed companies with continuous losses and explores the potential for private equity funds to acquire these companies as a more stable and flexible solution compared to traditional methods like delisting or being acquired [1][8]. Group 1: Acquisition Dynamics - Private equity funds are seen as a cost-effective option for acquiring loss-making companies, especially after the introduction of the "merger six guidelines" in September 2024, which supports private equity fund acquisitions for industrial integration purposes [2][9]. - Tianmai Technology, which has reported losses for four consecutive years, is set to be acquired by Suzhou Qichan, a private equity fund, marking the first case of this nature following the new guidelines [5][6]. - The acquisition process involves a "pre-investment and post-fundraising" approach, where the acquirer first identifies the target before raising the necessary funds [6][7]. Group 2: Market Context and Implications - In developed capital markets, private equity fund acquisitions of public companies are common, offering unique advantages such as minimal interference in daily operations and enhanced resource integration capabilities [3][10]. - The Tianmai Technology acquisition is viewed as a significant policy indicator, potentially paving the way for more private equity fund participation in public company acquisitions, thus promoting capital market innovation and improving overall company quality [9][10]. Group 3: Regulatory Considerations - The article emphasizes the need for comprehensive regulation of private equity fund acquisitions to prevent market irregularities, including third-party evaluations for asset injections and strict scrutiny of acquisition motives and funding sources [3][12]. - Recommendations for enhancing the regulatory framework include improving information disclosure, establishing risk assessment mechanisms, and ensuring ongoing monitoring of post-acquisition company performance [13][14].