Core Viewpoint - Heshun Petroleum (603353) is gaining investor interest due to its plan to acquire control of semiconductor IP company Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology), despite facing performance pressures and the target company's projected losses in the near term [1][3][4]. Group 1: Acquisition Details - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity through cash and control 51% of the voting rights via a voting rights entrustment [3]. - The total valuation of Kuixin Technology is estimated at no more than 1.588 billion yuan, with the final transaction amount expected to be under 540 million yuan [3]. - The controlling shareholders of Heshun Petroleum will transfer 10.3144 million shares, representing 6% of the total share capital, to Kuixin Technology's controlling shareholder at a price of 22.932 yuan per share, totaling 237 million yuan [3]. Group 2: Financial Performance - Kuixin Technology is projected to report losses in net profit for the first half of 2025, with revenues of approximately 146 million yuan, 193 million yuan, and 110 million yuan for 2023, 2024, and the first half of 2025, respectively [5]. - Heshun Petroleum's revenue and net profit have been declining, with revenues of approximately 3.994 billion yuan, 3.273 billion yuan, and 2.812 billion yuan from 2022 to 2024, and corresponding net profits of approximately 104 million yuan, 52.23 million yuan, and 29.27 million yuan [6]. Group 3: Strategic Outlook - The acquisition represents a cross-industry merger, as Heshun Petroleum's main business is in refined oil retail and wholesale, while Kuixin Technology focuses on integrated circuit IP and Chiplet product development [4]. - Heshun Petroleum aims to leverage the semiconductor IP sector's growth potential to find new revenue streams and ensure sustainable development [6][7].

Core Viewpoint - Heshun Petroleum (603353) is gaining investor interest due to its plan to acquire a controlling stake in semiconductor IP company Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology), leading to a significant increase in its stock price, despite the target company's projected losses in the near term [1][3][4]. Group 1: Acquisition Details - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity through cash and control 51% of the voting rights, with the total transaction amount not exceeding 540 million yuan [3]. - The valuation of Kuixin Technology is set at no more than 1.588 billion yuan, with the expected transfer price for shares held by Heshun's actual controllers at 2.37 billion yuan [3][4]. Group 2: Financial Performance of Kuixin Technology - Kuixin Technology is projected to report losses in net profit for the first half of 2025, with revenues of approximately 146 million yuan, 193 million yuan, and 110 million yuan for 2023, 2024, and the first half of 2025, respectively [5]. - The company has performance commitments for 2025 to 2028, with expected revenues of at least 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan, alongside positive net profits for those years [5]. Group 3: Heshun Petroleum's Financial Situation - Heshun Petroleum's revenues have been declining, with figures of approximately 3.994 billion yuan, 3.273 billion yuan, and 2.812 billion yuan for 2022, 2023, and 2024, respectively, and a significant drop in net profit [6]. - In the first three quarters of the current year, the company reported revenues of about 2.126 billion yuan, a slight decrease of 0.13% year-on-year, and a net profit decline of 49.44% [6]. Group 4: Industry Outlook - The semiconductor IP sector is viewed as having strong growth potential, driven by technological innovation and market demand, which Heshun Petroleum aims to leverage for future growth [6].

Core Viewpoint - The company, HeShun Petroleum, is diversifying into the semiconductor industry by acquiring a controlling stake in Shanghai KuiXin Integrated Circuit Design Co., Ltd. (KuiXin Technology) to seek new growth opportunities amid declining performance in its core business [2][3][7]. Group 1: Acquisition Details - HeShun Petroleum plans to acquire at least 34% of KuiXin Technology's equity through cash payment and will control 51% of the voting rights via a voting rights delegation agreement [2][3]. - The total valuation of KuiXin Technology is capped at 1.588 billion yuan, with the final transaction amount expected to be no more than 540 million yuan [2][3]. - The acquisition is structured as a "transfer + capital increase" model, with a control acquisition intention agreement signed on November 14 [3]. Group 2: Business Context - KuiXin Technology, established in 2021, focuses on integrated circuit IP and Chiplet product development, addressing computing power expansion and high-speed interconnection issues [6]. - The company has developed a strategic cooperation network with major foundries like TSMC and Samsung, and its products are utilized in data centers, AI, automotive electronics, and consumer electronics [6]. - KuiXin Technology has a performance commitment for revenue from 2025 to 2028, with targets set at no less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan for each respective year [6]. Group 3: Financial Performance - HeShun Petroleum's main business, which includes gas station operations and oil logistics, has seen a decline in revenue from 39.94 billion yuan in 2022 to an expected 28.12 billion yuan in 2024, with net profit decreasing from 1.04 billion yuan to 290 million yuan over the same period [7][10]. - The company has initiated a strategic partnership with Huawei to develop supercharging stations, aiming to transform traditional energy stations into new energy stations [10]. - Despite efforts to diversify, HeShun Petroleum's revenue for the first three quarters of 2023 was 2.126 billion yuan, a slight decline of 0.13% year-on-year, with net profit dropping by 65.95% to approximately 10.9 million yuan [10][11].