Core Viewpoint - Wanlong Optoelectronics is planning to acquire control of Zhejiang Zhongkong Information Industry Co., Ltd. through a share issuance and cash payment, while also raising supporting funds [1] Group 1: Acquisition Details - Wanlong Optoelectronics announced the acquisition of Zhongkong Information, which previously aimed for an IPO with a fundraising target of 1 billion yuan, but its application was terminated in August 2024 [1][2] - The transaction is classified as a related party transaction and is expected to constitute a major asset restructuring, but will not lead to a restructuring listing [1] - Wanlong Optoelectronics plans to disclose the transaction scheme within 10 trading days, and its stock will be suspended from trading starting December 4, 2025 [1] Group 2: Company Profiles - Wanlong Optoelectronics specializes in the R&D, production, sales, and technical support of broadcasting network equipment and data communication systems, positioning itself as a comprehensive solution provider in the optical communication field [2] - Zhongkong Information is a service provider for infrastructure digitization, focusing on projects that include traffic signal control machines and intelligent traffic lights, and has established itself as a competitive player in the industry [2] - From 2021 to 2023, Zhongkong Information reported revenues of 3.085 billion yuan, 3.325 billion yuan, and 3.185 billion yuan, with net profits of 150 million yuan, 159 million yuan, and 146 million yuan respectively [2] Group 3: Regulatory Scrutiny - The Shenzhen Stock Exchange raised concerns during the first round of inquiries regarding Zhongkong Information's core technology, competitive landscape, and revenue sources, particularly its reliance on the Zhejiang province, which accounted for 71.90% of its revenue in 2022 [3] - The exchange requested clarification on the accuracy of market share and ranking disclosures, as well as the company's plans for expanding its business outside Zhejiang province [3]