Core Viewpoint - Niuwei Co., Ltd. plans to acquire 40% of its subsidiary Dongwu Machinery for 139 million yuan, aiming to enhance operational efficiency and resource allocation, making Dongwu a wholly-owned subsidiary [1]. Group 1: Acquisition Details - The acquisition is valued at 139 million yuan, with Dongwu Machinery's equity assessed at 373 million yuan, reflecting an appreciation of 170 million yuan, or 83.89% [1]. - Dongwu Machinery's products are utilized in various demanding industrial sectors, including refining, chemicals, and renewable energy [1]. Group 2: Financial Performance - For the first seven months of 2025, Dongwu Machinery reported revenue of 96.82 million yuan and a net profit of 11.63 million yuan [1]. - In 2024, Dongwu Machinery achieved an annual revenue of 170 million yuan and a net profit of 23.74 million yuan [1]. - Niuwei Co., Ltd. reported a net profit of 1.114 billion yuan for the first three quarters of 2025, indicating a significant performance gap compared to Dongwu Machinery [1]. Group 3: Shareholder Actions - Niuwei Group, the controlling shareholder, reduced its stake by 6.55 million shares (0.84% of total shares) between July 22 and September 10, 2025, and a total of 7.49 million shares (0.97%) from July 18 to October 17, 2025, raising 259 million yuan [2]. - The share price of Niuwei Co., Ltd. doubled within the year, reaching 54.60 yuan per share, with a market capitalization of 42.34 billion yuan as of November 6 [3]. Group 4: Market Implications - The simultaneous occurrence of a high-value acquisition and significant share sell-off by the controlling shareholder raises questions about the rationale behind the acquisition pricing and the future valuation of the company [4]. - The actions of the controlling shareholder during a period of strong performance and high stock prices suggest a complex outlook on the company's future prospects [4].