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].