Core Viewpoint - The article highlights the increasing merger and acquisition (M&A) activity on the Beijing Stock Exchange (北交所), with a notable transaction involving Keda Automation's acquisition of a majority stake in Haitu Technology, marking a significant shift in the market dynamics and positioning the exchange as a new battleground for M&A [4][24]. Summary by Sections M&A Activity on the Beijing Stock Exchange - The capital market's M&A activity is rapidly expanding towards the Beijing Stock Exchange, with Keda Automation announcing a cash acquisition of 51% of Haitu Technology for 209.1 million yuan, setting records for the largest cash M&A deal since the exchange's inception in 2021 [4][3]. - As of June 27, 2025, there have been 30 significant investment and M&A events on the Beijing Stock Exchange, indicating a growing trend in this market [4]. Keda Automation and Haitu Technology - Keda Automation, established in 2000, specializes in smart mining solutions and has become a key supplier for major coal companies in China, with its smart mining control systems covering over 300 coal mines by 2021 [7]. - Haitu Technology, founded in 2013, is recognized as a "little giant" enterprise in AI, achieving a revenue of 145 million yuan in 2024, which is higher than Keda Automation's net profit of 34.51 million yuan for the same period [8][9]. Strategic Rationale for the Acquisition - The acquisition is characterized by strong industrial synergy, as Haitu Technology's products are applicable in smart mining and align with Keda Automation's business focus [11]. - Keda Automation has expressed a strong interest in AI and robotics, aiming to develop specialized robots for the mining industry, which complements Haitu Technology's capabilities [12][14]. Financial Considerations and Performance Guarantees - Keda Automation faces financial pressure, with only 10.01 million yuan in cash and total liabilities of 805 million yuan, raising concerns about its ability to finance the acquisition [15]. - To mitigate risks, a three-year performance guarantee has been established, requiring Haitu Technology to achieve specific net profit targets, with penalties for underperformance [15][16]. Broader M&A Trends on the Beijing Stock Exchange - Recent policies, including the "National Nine Articles" and "M&A Six Articles," have stimulated M&A activities, with companies increasingly focusing on business synergies and acquiring hidden champions in niche markets [18][22]. - The Beijing Stock Exchange is evolving into a significant platform for M&A transactions, supported by regulatory changes that facilitate quicker and simpler approval processes for asset restructuring [23][24].

Core Viewpoint - Keda Control plans to acquire 51% of Haitu Technology for 209.1 million yuan, marking the first acquisition of a New Third Board company by a North Exchange listed company and the largest cash acquisition in this context [1][3] Company Overview - Haitu Technology, established in April 2013, focuses on artificial intelligence and machine vision technology, with products including embedded audio and video modules and industrial cameras, serving sectors like smart mining and military [2] - Keda Control, founded in November 2000, specializes in smart mining and industrial internet, having completed its IPO on the North Exchange in 2021 [2] Financial Performance - In 2023 and 2024, Haitu Technology is projected to achieve revenues of approximately 137 million yuan and 145 million yuan, with net profits of 41.83 million yuan and 41.65 million yuan respectively [2] - Keda Control's revenues for 2023 and 2024 are expected to be 426 million yuan and 434 million yuan, with net profits of 55.15 million yuan and 34.51 million yuan [3] - By Q1 2025, Keda Control reported revenues of 67.41 million yuan but incurred a net loss of 6.14 million yuan [3] Strategic Implications - The acquisition is expected to enhance Keda Control's profitability and operational efficiency, leveraging the strengths of both companies [3][5] - This transaction reflects the North Exchange's role in facilitating new pathways for New Third Board companies and enhancing market competitiveness through mergers and acquisitions [3][4] Performance Commitments - Haitu Technology's original shareholders have committed to achieving net profits of no less than 38 million yuan in 2025, 42 million yuan in 2026, and 46 million yuan in 2027, or a cumulative net profit of at least 126 million yuan over three years [4] - If these performance targets are not met, the original shareholders are obligated to compensate Keda Control [4] Resource Integration - The acquisition aims to integrate resources from both companies, enhancing product performance and market share [5] - Keda Control plans to strengthen internal controls and management of Haitu Technology post-acquisition to mitigate potential risks [5]