Core Viewpoint - Taifu Pump Industry plans to acquire at least 51% of Nanyang Huacheng's shares to gain control, aiming to enhance its growth potential and diversify its business [1][3][4]. Group 1: Acquisition Details - The acquisition is intended to be executed through cash payment, with the specific share percentage to be finalized in a formal agreement [3]. - The transaction is currently in the planning stage and is expected to constitute a major asset restructuring according to regulations [4]. Group 2: Company Background - Taifu Pump Industry, established in 1993, specializes in the research, production, and sales of civilian water pumps and was listed on the Shenzhen Stock Exchange in May 2021 [3]. - The water pump industry is experiencing stable growth, but competition is intensifying, leading to sluggish profit growth for listed companies [3]. Group 3: Target Company Overview - Nanyang Huacheng focuses on the research, production, and sales of BOPP film materials for capacitors, holding the largest market share in China for capacitor polypropylene electronic film materials in 2023 [4]. - Capacitor films are critical components in electrical systems, widely used in strategic emerging industries such as new energy vehicles and robotics, with increasing performance demands [4]. Group 4: Financial Performance - In 2024, Taifu Pump Industry reported a revenue of 743 million yuan, a year-on-year increase of approximately 4%, but a significant decline in net profit by 76.35% to 12.65 million yuan [5]. - For Q1 2025, the company recorded a revenue of 167 million yuan, a year-on-year decrease of 2.96%, while net profit increased by 115.04% to 21.81 million yuan [5]. Group 5: Market Position - As of July 9, Taifu Pump Industry's stock closed at 25.18 yuan per share, with a total market capitalization of 2.4 billion yuan [6].