Core Viewpoint - The control of Zhen'an Technology (300767) is set to change, with the current controlling shareholder, Beijing Huachuang Sanxin Investment Management Co., Ltd., planning to transfer 100% of its equity to Shenzhen Dongchuang Technology Co., Ltd. for 616 million yuan, leading to a shift in actual control from Li Tao to Ning Huaxiang and Zhou Jianqi [1][2] Group 1: Shareholder Changes - The transaction involves the transfer of 100% equity of Huachuang Sanxin by its two legal shareholders to Shenzhen Dongchuang for 616 million yuan [2] - Li Tao, the current actual controller, will relinquish voting rights for 12% of shares, reducing his voting power to 5.28% post-transaction [2] - After the transaction, Huachuang Sanxin remains the controlling shareholder, while Shenzhen Dongchuang will hold 18.12% of voting shares through Huachuang Sanxin [2] Group 2: Background of Shenzhen Dongchuang - Shenzhen Dongchuang, previously known as Dongchuang Precision, has a registered capital of 69.12 million yuan and has been involved in the capital market since 2019 [3] - The company has established itself as a core supplier for Huawei and has partnerships with other major firms like ZTE, Foxconn, and BYD [3] Group 3: Financial Performance of Zhen'an Technology - Zhen'an Technology has reported losses for two consecutive years, with total net losses amounting to 182 million yuan [1][6] - In 2023 and 2024, the company generated revenues of 694 million yuan and 417 million yuan, respectively, with net losses of 41.13 million yuan and 141 million yuan [6] - The company's gross profit margin decreased to 31.65% in 2024, with specific product margins showing mixed results [6][7] Group 4: Investment Projects and Future Outlook - Zhen'an Technology's investment projects have underperformed, with significant losses reported in both IPO and convertible bond projects [7] - The company aims to leverage Shenzhen Dongchuang's industry resources to enhance its operational capabilities and improve overall competitiveness [7]

Core Viewpoint - The seismic isolation and damping technology is increasingly important in the construction industry, especially in earthquake-prone areas, with significant market growth driven by national policies and urbanization [1][6][10]. Industry Overview - Seismic isolation and damping technology effectively reduces seismic energy transmitted to buildings, with damping techniques lowering seismic effects by 20%-30% and isolation techniques by 50%-80% [4][6]. - The market size for building seismic isolation and damping in China is projected to grow from 600 million yuan in 2017 to 6.423 billion yuan in 2024, with expectations to reach 15 billion yuan by 2026 [1][10]. Policy Support - The "Construction Engineering Seismic Management Regulations" implemented in September 2021 marks a shift from encouragement to mandatory application of seismic isolation technology in public buildings in high seismic risk areas [6][10]. - Local governments are also promoting the application of seismic isolation technology, with various regions establishing their own regulations to support this initiative [10][18]. Market Dynamics - The building seismic isolation industry has high technical barriers and competitive pressures, with companies focusing on optimizing production processes to ensure product quality while reducing costs [12][14]. - Key players in the industry include Zhenan Technology, Tiantie Technology, and Haide Technology, each with unique technological advancements and product offerings [12][14][16]. Future Trends - The application of seismic isolation technology is expected to increase significantly due to policy-driven mandates, with the coverage expanding from 287 districts in 2021 to 648 districts by 2025 [18]. - Innovations in materials and technology are leading to higher reliability and efficiency in seismic isolation products, with a shift towards integrated multifunctional solutions [19][20].

Core Viewpoint - The company specializes in seismic isolation technology and has become a leading manufacturer in the domestic market, focusing on the development, production, and sales of various seismic isolation products, which are increasingly in demand due to rising earthquake risks in China [5][20][24]. Company Overview - The company is engaged in the consulting, design, production, sales, and maintenance of seismic isolation products, establishing itself as a high-tech enterprise with significant production capacity [5][6]. - Key products include rubber bearings, sliding bearings, energy-dissipating dampers, and various vibration control devices, which are essential for enhancing building safety against seismic activities [6][8][9][10]. Business Model - The company adopts a sales-driven procurement model, ensuring reasonable inventory levels while maintaining a list of qualified suppliers [14]. - Production is based on sales orders, allowing for flexibility in meeting market demands [15]. - The company emphasizes technical services, providing comprehensive support from project consultation to post-installation maintenance [16]. Market Dynamics - China is located in a seismically active region, with a significant portion of its territory at risk of earthquakes, driving the demand for seismic isolation technologies [20]. - Recent regulations, such as the "Construction Engineering Seismic Management Regulations," have increased the demand for seismic isolation products in public buildings [22][24]. - The company has strategically adjusted its sales and collection policies to enhance cash flow and mitigate risks, leading to a temporary decline in revenue but positioning for long-term stability [19][22]. Technological Advancements - The company is committed to improving product quality and industry standards, collaborating with research institutions to enhance testing methodologies for seismic isolation products [25]. - Ongoing development of economic benefit assessment methods for seismic isolation technologies aims to demonstrate their cost-effectiveness and long-term advantages [26][27]. Future Outlook - The company plans to expand its market presence by establishing regional sales centers and enhancing collaboration with design institutes to promote seismic isolation technologies [21][28]. - With increasing government support and regulatory frameworks, the seismic isolation industry is expected to grow, providing significant opportunities for the company [24][25].