Core Viewpoint - Lionhead Co., Ltd. is progressing with its merger and acquisition project, transitioning from a traditional e-commerce service provider to a technology-driven enterprise, focusing on the dual business model of "e-commerce services + machine vision" [1][2]. Group 1: M&A Details - The company has responded to inquiries regarding the merger and acquisition, addressing transaction details, target operating conditions, and synergy effects [1]. - Lionhead Co., Ltd. plans to leverage its platform advantages to assist the acquired company, Lipotek, in expanding into the southwestern market, exemplified by a strategic cooperation agreement with Chongqing Chang'an [1]. - Lipotek's technological capabilities will enhance the e-commerce business, particularly through machine vision to optimize supply chain and warehouse management, improving fulfillment efficiency [1]. Group 2: Market Potential - According to a Frost & Sullivan report, the industrial machine vision product market in China is projected to grow from approximately 26.83 billion yuan in 2024 to 63.01 billion yuan by 2029, with a compound annual growth rate of 18.62% from 2024 to 2029 [2]. - The acquisition allows Lionhead Co., Ltd. to enter this high-growth sector, facilitating its strategic transformation towards a technology-driven enterprise [2]. Group 3: Business Strategy - Lionhead Co., Ltd. plans to divest its underperforming water purification business, which has been consistently losing money and is expected to account for only about 6% of revenue in 2024 [3]. - The e-commerce service business remains a crucial growth engine, and the company aims to enhance profitability in this area while reallocating resources to the machine vision business [3]. - The company commits to a steady and transparent approach in advancing the restructuring process and fulfilling information disclosure obligations [3].