Core Viewpoint - Guangzhou Pharmaceutical Group Co., Ltd. (referred to as "Guangzhou Pharmaceutical Group") is set to become the indirect controlling shareholder of Da'an Gene (002030.SZ) through a share transfer, amidst a backdrop of internal resource optimization within Guangzhou state-owned enterprises [1][2][3][4][6]. Summary by Sections Shareholding Changes - Guangzhou Pharmaceutical Group plans to control approximately 374 million shares of Da'an Gene, accounting for 26.63% of the total share capital, through a combination of indirect and direct share transfers, with a total cost of approximately 908 million yuan [1][4][6]. - The actual controlling entity of Da'an Gene will remain the Guangzhou Municipal Government, as both Guangzhou Pharmaceutical Group and Guangzhou Financial Holdings Group are state-controlled enterprises [6]. Financial Performance of Da'an Gene - Da'an Gene's financial performance has significantly declined post-COVID-19, with a net profit of 5.41 billion yuan in 2022, followed by projections of 105 million yuan in 2023 and a loss of 925 million yuan in 2024 [2][9]. - For the first three quarters of 2025, Da'an Gene reported a net loss of 142 million yuan, although this represented a 71.85% reduction in losses compared to the previous year [2][9]. Research and Development Investment - Da'an Gene has experienced a continuous decline in R&D investment, with expenditures dropping to 146 million yuan in the first three quarters of 2025, down from 431 million yuan in 2022 [2][9]. - This reduction in R&D spending aligns with the company's declining revenue, indicating potential challenges in regaining previous performance levels [9]. Future Prospects - The strategic acquisition by Guangzhou Pharmaceutical Group raises questions about future plans and whether this move can facilitate a rapid recovery and growth for Da'an Gene [10].