Core Viewpoint - Sichuan Changhong's subsidiary, Changhong Jiahua, is being privatized by its controlling shareholder for 709 million HKD, reflecting the liquidity challenges faced by companies in the Hong Kong stock market [1] Financial Situation - The acquisition price is set at 1.223 HKD per share for 580 million shares, representing 39.87% of Changhong Jiahua's total equity. Post-transaction, Sichuan Changhong will maintain a 77.43% control over the subsidiary [2] - In the first half of 2025, Changhong Jiahua reported revenues of 21.169 billion HKD, a year-on-year increase of 9.76%, and a net profit of 181 million HKD, up 10.16%. However, its gross margin of 3.07% decreased by 0.39 percentage points compared to the same period in 2024 [2] - As of June 30, 2025, the company's total market value was only 1.2 billion HKD, while its net assets exceeded 3 billion HKD, indicating a long-term undervaluation of its stock [2] Liquidity Challenges - Changhong Jiahua's situation is part of a broader trend, with 20 Hong Kong companies privatizing and delisting in 2025, a 33% increase from 15 companies in 2024. The company noted that since its restructuring and listing in 2013, its stock liquidity and price have remained low despite moving to the main board of the Hong Kong stock exchange [3] Strategic Implications - The privatization aims to reduce listing-related costs and leverage the controlling shareholder's resources for new development opportunities. This indicates two strategic intentions: 1. Business Integration: Changhong Jiahua's ICT services, developed over years, have a nationwide channel system and nearly 10,000 core agents, which can synergize with Sichuan Changhong's smart home and semiconductor businesses post-privatization [4] 2. A-share Return Expectations: If Changhong Jiahua returns to the A-share market, its valuation could significantly increase compared to its current market value of 1.6 billion HKD in Hong Kong [4]

Financial Performance - The company reported a revenue of 457.67 million yuan for the first half of 2025, representing a year-on-year increase of 69.27% compared to 270.38 million yuan in the same period last year [1] - The net profit attributable to shareholders was 5.08 million yuan, up 20.05% from 4.23 million yuan year-on-year [1] - The net profit after deducting non-recurring items was 4.51 million yuan, reflecting a 19.46% increase from 3.78 million yuan in the previous year [1] - The basic earnings per share increased by 28.57% to 0.09 yuan from 0.07 yuan [1] Profitability Metrics - The gross margin for the first half of 2025 was 23.26%, a decrease of 10.80 percentage points compared to the previous year [2] - The net profit margin was 1.20%, down 0.28 percentage points from the same period last year [2] Expense Analysis - The company's operating expenses for the first half of 2025 totaled 92.31 million yuan, an increase of 5.41 million yuan year-on-year [2] - The expense ratio was 20.17%, which decreased by 11.97 percentage points compared to the previous year [2] - Sales expenses decreased by 14.08%, while management expenses increased by 10.61%, R&D expenses grew by 14.17%, and financial expenses surged by 165.37% [2] Company Background - Beijing Parallel Technology Co., Ltd. was established on February 15, 2007, and is located in Haidian District, Beijing [6] - The company specializes in data center operations and supercomputing cloud services [6] Leadership Information - The chairman and general manager, Chen Jian, received a salary of 1.035 million yuan in 2024, while the vice general manager, He Ling, earned 820,000 yuan [4] - Chen Jian has a strong educational background with a Ph.D. in fluid mechanics from Tsinghua University and has held various technical and managerial positions in notable companies [5]