Core Viewpoint - *ST Huawang plans to sell its wholly-owned subsidiary, Zhongwei International Engineering Design Co., Ltd., for 360,000 yuan, despite having invested 182 million yuan in its acquisition, highlighting the company's ongoing struggles with asset management and performance issues [2][3]. Group 1: Acquisition and Financial Performance - In September 2017, *ST Huawang acquired 80% of Zhongwei International for 144 million yuan, with a valuation increase of 640.64% based on shareholder equity [3]. - Zhongwei International's revenue was 37.46 million yuan and net profit was 6.14 million yuan in 2016, with performance commitments made for 2017-2019 [3]. - However, from 2020 onwards, Zhongwei International's performance declined significantly, reporting losses of 2.8 million yuan in 2020 and 12.5 million yuan in 2021 [4][11]. Group 2: Current Financial Status - As of August 2023, Zhongwei International's net assets were only 276,000 yuan, and it owed *ST Huawang 3.68 million yuan, which it could not repay [5]. - The planned sale of Zhongwei International is part of *ST Huawang's strategy to optimize its asset and business structure [2]. Group 3: Corporate Restructuring and Future Plans - Following a bankruptcy restructuring initiated in 2022, *ST Huawang introduced new investors and committed to achieving significant revenue targets by 2025 [11]. - The company is also pursuing a high-premium acquisition of Niwei Power, with a valuation of 1.207 billion yuan, which could lead to substantial goodwill on its balance sheet [12][13].

Group 1 - The core transaction involves the acquisition of 55.50% equity in Anhui Niwei Automotive Power System Co., Ltd. by the company through cash payment, with a total transaction price of 601.37 million yuan for non-state-owned equity and 64.63 million yuan for state-owned equity [10][12][13] - The transaction is classified as a major asset restructuring, which does not constitute a reverse listing or related party transaction, as the transaction parties are not related to the company's controlling shareholder [12][13] - The target company specializes in the research, development, production, and sales of high-pressure fuel tank systems for new energy hybrid vehicles, which aligns with the company's strategy to enter the green low-carbon development sector [13][14] Group 2 - The transaction is expected to enhance the company's operational capabilities and improve its financial performance, with projected increases in total assets, operating income, and net profit post-transaction [14][15] - The company aims to leverage the acquisition to transition from traditional economic growth models to new productive assets, thereby enhancing its competitive strength in the market [13][14] - The controlling shareholder supports the transaction, believing it will benefit the company's sustainable operations and protect the interests of shareholders, particularly minority shareholders [15][16]