Core Viewpoint - The company Huasheng Co., Ltd. is undergoing a significant asset restructuring to acquire 100% of Shenzhen Yixin Technology Co., Ltd., aiming to enter the burgeoning computing power sector, which is seen as a critical move for the company's turnaround [1][2][4]. Group 1: Restructuring Details - On June 9, 2025, Huasheng announced the restructuring plan, with trading suspended, and on June 23, it disclosed the transaction proposal involving a combination of share issuance and cash payment [5]. - The restructuring is expected to change Huasheng's main business focus from traditional textile products to computing power infrastructure services, which includes planning, construction, and operation management of green computing centers [6][11]. - The due diligence process for the restructuring has been ongoing for four months, and the final outcome remains uncertain [3]. Group 2: Financial Performance - Huasheng has faced continuous losses, with a non-recurring net profit deficit for 17.5 years from 2008 to mid-2025, and a cumulative net profit loss of 506 million yuan since its listing [9][11]. - In the first half of 2025, Huasheng reported revenue of 433 million yuan, a year-on-year increase of 31.28%, but a net profit loss of 13.55 million yuan, although this represented a 47.10% reduction in losses compared to the previous year [9]. - In contrast, Yixin Technology has shown positive financial performance, with revenues of 341 million yuan and 409 million yuan in 2023 and 2024, respectively, and net profits of 15.24 million yuan and 27.36 million yuan [11]. Group 3: Market Context - The textile industry, where Huasheng primarily operates, has been under pressure due to fluctuating demand, increased competition, and rising costs, leading to significant operational challenges [10]. - The acquisition of Yixin Technology is viewed as a strategic move to tap into the growing computing power market, which could potentially enhance Huasheng's profitability [2][11].

Group 1: Company Overview and Services - The company is a leading third-party service provider in the computing power infrastructure sector, offering comprehensive services for computing parks, data centers, and cloud computing vendors [3] - Core business segments include computing power equipment integration sales, comprehensive services for computing power infrastructure, and digital value-added solutions [3] - The company aims to provide a full range of services covering the entire industry chain of computing power infrastructure [3] Group 2: Financial and Legal Matters - The company received non-standard audit opinions due to prepayments totaling CNY 78.2588 million and CNY 54.5 million to two companies that failed to deliver goods as per contract [4] - Legal proceedings have been initiated to recover these amounts, and a special task force has been established to monitor the cases [5] - The company has strengthened internal controls and established stricter management systems for prepayments to mitigate risks [5] Group 3: Product Innovations - The D-Box Pro is a desktop-level AI integrated machine, designed for easy deployment without the need for specialized facilities, making it suitable for office environments [6] - Target applications for the D-Box Pro include small to medium enterprises and departments requiring real-time inference computing [7] Group 4: Asset Management and Growth - Fixed assets increased due to the completion of the computing power center project, enhancing the company's infrastructure for computing power leasing [8] - The company has implemented a comprehensive risk management strategy for accounts receivable, including legal actions for overdue payments [9] Group 5: International Expansion and Future Investments - The company is leveraging its international operational experience to enhance global delivery capabilities and local service offerings [10] - Future investment strategies focus on both organic growth and strategic investments to optimize business structure and enhance development quality [11]