Core Viewpoint - Hengwei Technology is planning to acquire a controlling stake in Shanghai Shuhang Information Technology Co., Ltd. to extend its AI strategy, marking the first case of an A-share listed company acquiring an AI RaaS target, which is seen as a strategic positioning move in the AI industry [1][5]. AI Strategy Extension - Hengwei Technology announced on September 16 that it is planning to purchase 75% of Shanghai Shuhang's shares through a combination of issuing shares and cash, while also raising matching funds through share issuance. This transaction is not expected to constitute a major asset restructuring [2]. - Shanghai Shuhang, established in 2017, began training a locally deployable S-GPT large model in 2022 and completed its localized deployment in March 2023. The company has developed a series of advanced AI applications based on customer demand scenarios [2]. - The acquisition aligns with Hengwei Technology's focus on upgrading and expanding its AI computing capabilities, as both companies have complementary strengths in AI infrastructure and application [2]. Innovative Business Model - The AI industry is still in its early stages, with few AI software and service companies achieving profitability. However, Shanghai Shuhang has already realized significant profitability, with rapid growth in revenue and profit over the past three years [3]. - Shanghai Shuhang is innovating its business model by practicing AI RaaS, which is seen as a potential final model for AI application implementation. This model shifts the value perception for customers from "buying tools" to "buying results," allowing for a significant increase in the revenue share from 1%-2% to over 20% [3]. Comprehensive Capability - Shanghai Shuhang has built a comprehensive capability from foundational models to practical applications, serving numerous brand companies across various industries such as fast-moving consumer goods, automotive, finance, education, and human resources [4]. - The company expects to see the effects of its data-driven business model starting in 2025, leading to increased revenue and improved profit margins through deep customer engagement and operational efficiency [4]. Strategic Positioning - The acquisition is not only about business synergy but also about capturing industry trends, with Hengwei Technology aiming to establish a significant first-mover advantage in the AI application sector [5][6]. - First movers in the AI application field benefit from advantages in technological advancement and customer loyalty, with the potential to create sustainable competitive barriers through deep integration of AI RaaS into client production systems [6].