Core Viewpoint - Longjiang Transportation (601188.SH), the only publicly listed highway company in Heilongjiang Province, is actively expanding into new industries through the acquisition of a 100% stake in Heilongjiang Water Transport Construction Development Co., Ltd. (Water Transport Company) from its controlling shareholder, Heilongjiang Provincial Highway Group Co., Ltd. This acquisition aligns with the company's "one body, two wings" strategy, focusing on the rapid development of its industrial wing and sustainable growth through clean energy assets [2][10]. Financial Performance - In the first half of 2025, Longjiang Transportation achieved operating revenue of 244 million yuan, a year-on-year increase of 8.74%. The net profit attributable to shareholders was approximately 94.75 million yuan, up 19.12%, while the net profit excluding non-recurring items reached about 98.83 million yuan, reflecting a growth of 17.37%. The company has seen continuous performance improvement for two and a half years since 2023 [3][10]. Acquisition Details - Longjiang Transportation plans to acquire the Water Transport Company for a price not exceeding 157 million yuan, based on an assessment value of 157 million yuan, which reflects a significant appreciation of 386.77% due to the company's strategic asset restructuring in 2019 [7][10]. - The Water Transport Company operates the Dadingzi Mountain Hydropower Station, which has a total installed capacity of 66,000 kilowatts and is currently in normal operation [5][6]. Strategic Development - The acquisition is part of Longjiang Transportation's broader strategy to enhance its new materials and renewable energy business. The company has previously invested in graphite-related industries and distributed photovoltaic projects, indicating a strong commitment to diversifying its portfolio [9][10]. - The company has successfully established 139 distributed photovoltaic project sites with a total installed capacity of 17.13 MW, demonstrating its proactive approach in the renewable energy sector [9][10]. Operational Insights - Longjiang Transportation maintains a solid performance in its traditional highway operations, holding the concession for a 132.8-kilometer section of the Harbin-Daqing Expressway and operating the largest taxi service in Heilongjiang Province [10]. - In the first half of 2025, the company reported toll revenue of 163 million yuan, reflecting a year-on-year growth of 4.85% [11].