Core Viewpoint - The company is responding to an inquiry from the Shenzhen Stock Exchange regarding its plan to acquire 100% of the equity of Guangzhou Metro Engineering Consulting Co., which is a related party transaction aimed at enhancing its comprehensive engineering consulting services and operational efficiency [1][3]. Group 1: Transaction Background and Necessity - The transaction involves the acquisition of Guangzhou Metro Engineering Consulting Co. from the controlling shareholder, Guangzhou Metro Group, which will help the company integrate its engineering consulting services [3]. - The acquisition is expected to increase the company's asset-liability ratio and dilute earnings per share [3]. - The company aims to provide a more integrated service by sharing customer resources and sales channels with the acquired entity [3][4]. Group 2: Synergy and Integration - Both the company and the target asset have similar order acquisition methods, primarily through bidding and direct commissioning, indicating potential synergy [4][7]. - The existing customer bases of both companies overlap significantly, allowing for shared maintenance of clients and reduced costs [16][17]. - The transaction will enable the company to offer a full range of engineering consulting services, enhancing project execution efficiency and reducing costs [19][28]. Group 3: Financial Impact - The transaction is projected to increase total assets by 6.02% and total liabilities by 7.95%, with a corresponding increase in revenue and net profit [25][26]. - The basic earnings per share are expected to decrease by 4.88% post-transaction, indicating a short-term dilution of returns [26][27]. - The asset-liability ratio will slightly increase by 0.98 percentage points, but overall financial health remains stable [27][31]. Group 4: Strategic Development - The acquisition will enhance the company's competitive edge in the engineering consulting sector, particularly in urban rail transit and municipal projects [28][29]. - The company plans to utilize the acquired company's project management expertise to improve its overall operational capabilities and expand its service offerings [15][20]. - The integration of technical resources and expertise from both companies is expected to accelerate innovation and improve project delivery efficiency [21][22].