Group 1: Acquisition Overview - Shenzhen state-owned company Shahe Co., Ltd. plans to acquire 70% of Shenzhen Jinghua Display Electronics Co., Ltd. for cash, marking a significant step in its business transformation from real estate to technology[6] - This acquisition is the first demonstration case under Shenzhen's three-year action plan for mergers and acquisitions[6] - Shahe Co. reported a revenue of approximately CNY 20.86 million for the first three quarters of 2025, a year-on-year decline of 93.58%[6] Group 2: Financial Performance - The net profit attributable to shareholders for Shahe Co. was approximately -CNY 32.22 million, a year-on-year decrease of 168.73%[6] - Jinghua Electronics, established in 1987, had its IPO application accepted by the Shenzhen Stock Exchange in June 2023, but it was terminated in March 2024[6] Group 3: Related Transactions - Victory Co., Ltd. plans to issue shares and pay cash to acquire gas-related assets controlled by its major shareholder, including 100% of Zhongyou Gas (Zhuhai Hengqin) Co., Ltd. and 51% of Nantong Zhongyou Gas Co., Ltd.[6] - The acquisition involves gas assets across four regions, which will help Victory Co. to revitalize and integrate related assets within its group[6]

Group 1 - The core point of the article is the announcement of a major asset restructuring by Shenzhen state-owned listed company Shahe Co., which plans to acquire 70% of Shenzhen Jinghua Display Electronics Co. for cash, marking a significant move in line with Shenzhen's new merger and acquisition policy [1][5] - The acquisition is seen as a demonstration case for Shenzhen's "Three-Year Action Plan" for high-quality development of mergers and acquisitions, which was released just eight days prior to the announcement [1][5] - Jinghua Electronics, established in 1987, specializes in smart display controllers and has seen significant revenue growth, with net profit increasing nearly threefold from 2020 to 2022 [3][6] Group 2 - The transaction will not involve share issuance, maintaining the current control structure of Shahe Co. and avoiding common risks associated with changes in control during restructuring [4] - The acquisition is characterized as both a major asset restructuring and a related party transaction, which reduces uncertainty due to the shared ownership structure within the Shenyi Group [4][6] - The Shenzhen government aims to complete over 200 merger projects with a total transaction value exceeding 100 billion yuan by 2027, focusing on strategic emerging industries such as integrated circuits and artificial intelligence [5][6] Group 3 - The display device sector, where Jinghua Electronics operates, is experiencing growth driven by demand from markets like electric vehicles and smart homes, indicating a favorable industry trend [6] - The acquisition is expected to provide Shahe Co. with new growth opportunities, particularly as it seeks to diversify away from its traditional real estate business [5][6] - This merger is anticipated to activate merger activity in the Shenzhen capital market, aligning with the government's push for more cross-industry mergers led by state-owned enterprises [6]