Core Viewpoint - Huasheng Co., Ltd. (600156.SH) is planning a cross-industry layout by acquiring 100% of Shenzhen Yixin Technology Co., Ltd. to transform into the computing power business, driven by declining profitability in its traditional textile sector [1][4]. Group 1: Acquisition Details - The acquisition will be executed through a combination of issuing shares and cash payments, with additional funding raised from the controlling shareholder, Xingxiang Group [2]. - The transaction's audit and evaluation are still ongoing, and the asset price has not yet been determined [3]. Group 2: Business Context - Huasheng Co., Ltd. has faced significant challenges in its core textile business due to fluctuating consumer demand, increased competition, and rising costs, leading to a continuous net profit loss for 17 years [1][6][7]. - In contrast, Yixin Technology has demonstrated strong profitability, with projected revenues of 409 million yuan and net profits of 27.36 million yuan for 2024, reflecting year-on-year growth of 20.05% and 79.45%, respectively [1][9]. Group 3: Financial Performance - Huasheng's cumulative net profit loss from 2008 to 2024 is approximately 1.139 billion yuan, with a significant decline in gross margins due to competitive pricing strategies [7][8]. - As of March 2025, Huasheng's total assets were 865 million yuan, with an equity of 396 million yuan and a debt ratio of 54.28% [8]. - If the acquisition is successful, Huasheng's financial metrics, including total assets, revenue, and net profit, are expected to improve significantly, enhancing its profitability and competitive edge [9].

Group 1 - The core point of the article is that Huasheng Co., Ltd. plans to acquire 100% of Yixin Technology through a combination of share issuance and cash payment, aiming to enter the AIDC field and optimize its business structure [1][3] - The specific transaction price and the ratio of shares to cash payment are yet to be determined as the audit and evaluation of the target assets are not completed [1] - Huasheng Co., Ltd. has been facing challenges in its main business due to macroeconomic slowdown, fluctuating domestic and international demand, intensified competition, and rising costs of raw materials and labor [1][3] Group 2 - Yixin Technology specializes in AIDC and focuses on providing full lifecycle services for green computing infrastructure, aiming for low-carbon, high-density, and intelligent upgrades [2] - Yixin Technology has established and operates multiple high-performance intelligent computing centers in various locations, including Shenzhen and Guangzhou, and is expanding its presence in central China [2] - The acquisition is expected to enhance Huasheng's integration into the national computing network layout and support the high-quality development of new productive forces [2][3] Group 3 - The acquisition aligns with national and provincial strategic deployments, responding to the wave of artificial intelligence technology and the upgrade of digital industrial structure [3] - The transaction represents a breakthrough for Huasheng and its controlling shareholder, aiming to transition from traditional industries to strategic emerging industries [3] - Post-transaction, the introduction of quality AIDC assets is expected to significantly enhance the growth potential, profitability, and future development space of the company [3]