Core Viewpoint - Zhejiang Xinghua New Materials Co., Ltd. plans to acquire at least 51% of Hangzhou Tiankuan Technology Co., Ltd. for a valuation of no more than 660 million yuan, aiming to enhance its capabilities in the artificial intelligence sector and create new profit growth points [1][2]. Group 1: Acquisition Details - The acquisition will make Tiankuan Technology a subsidiary of Xinghua New Materials, which is focused on AI computing center construction and operations, including full-stack services in model training and optimization [1]. - Tiankuan Technology is a core partner in Huawei's ecosystem, involved in the adaptation and optimization of Ascend cloud technology [1]. Group 2: Strategic Importance - This acquisition represents a strategic move for Xinghua New Materials to accelerate its transformation towards new productive forces and establish a second growth curve [2]. - The company aims to leverage the synergies between Tiankuan Technology and its previous acquisition, Dongwang Intelligent Technology, to create a comprehensive support system for its AI dual-main business strategy [3]. Group 3: Financial and Operational Background - Xinghua New Materials has a stable financial position, with cash reserves of 771 million yuan, accounting for 42.69% of total assets, and a net cash flow from operating activities of 134 million yuan for the first three quarters of 2025 [2]. - The company has existing production capacities in reflective materials and is expanding its capabilities to meet future demand for functional materials [2]. Group 4: Complementary Strengths - Dongwang Technology focuses on hardware integration and AI infrastructure, while Tiankuan Technology specializes in software services and domestic computing platform operations, creating a complementary relationship [4]. - The merger is expected to enhance procurement capabilities and reduce hardware costs through centralized purchasing, while also expanding the technological depth and breadth of Xinghua New Materials in the AI sector [4].