Core Viewpoint - Hengwei Technology is seeking to overcome its declining operating performance through an external acquisition of 75% of Shanghai Shuhang Information Technology Co., Ltd. (Shuhang Technology), a leading enterprise-level AI solution provider focused on GPT technology applications [1][5]. Group 1: Acquisition Details - Hengwei Technology plans to issue shares and pay cash to acquire 75% of Shuhang Technology, with additional funds raised to support the transaction [1][5]. - The acquisition is seen as a strategic move to enhance Hengwei's AI capabilities and digital transformation offerings [1][10]. - The stock of Hengwei Technology has been suspended from trading due to the ongoing acquisition planning, with an expected suspension period of no more than 10 trading days [5]. Group 2: Financial Performance - Hengwei Technology reported a net profit of 26.84 million yuan for 2024, a significant decline of 65.92% year-on-year, and a further drop of approximately 75% in the first half of 2025, with a net profit of 17.82 million yuan [3][9]. - The company's revenue for 2024 was 1.117 billion yuan, reflecting a year-on-year growth of 44.83%, but the revenue for the first half of 2025 decreased by 23.19% to 488 million yuan [9]. - The decline in net profit is attributed to reduced orders in the intelligent system platform business and a decrease in overall gross margin due to product structure issues [9]. Group 3: Company Background and Market Position - Hengwei Technology, established in 2003, specializes in intelligent system solutions and has a significant presence in the network visualization sector [8]. - The company has been a pioneer in integrating AI technology into network visualization, enhancing its competitive edge in the market [8][9]. - Despite its leading position, Hengwei Technology faces increasing market competition, which has pressured its financial performance [9].