Core Viewpoint - Hangzhou Steam Turbine Power Group Co., Ltd. and Hangzhou Hailianxun Technology Co., Ltd. are set to undergo a share swap merger, marking the first successful "B to A" conversion in the B-share market in three years, reflecting the deepening reform of state-owned enterprises in Hangzhou and the acceleration of high-quality development in advanced manufacturing [3][4][5]. Group 1: B to A Conversion - The "B to A" conversion allows the company to transition from B-shares, aimed at foreign investors, to A-shares, which target a broader investor base [4]. - Hangzhou Steam Turbine has faced limitations in capital market financing due to the constraints of the B-share market, having raised only 1.71 billion HKD since its establishment [4][5]. - The conversion is expected to enhance the company's value and liquidity, attracting more institutional and individual investors, and improving the overall shareholder structure [5]. Group 2: Strategic Importance - The merger is a response to policy guidance and market opportunities, aimed at strengthening the state-owned enterprises and enhancing resource integration [7]. - The integration is anticipated to create a win-win situation, with Hangzhou Steam Turbine leveraging Hailianxun's A-share platform to inject new growth into its high-end equipment manufacturing business [7]. - The combined market capitalization of both companies has exceeded 20 billion RMB, reflecting positive market expectations regarding the merger [7]. Group 3: Future Development - Hangzhou Steam Turbine aims to become a world-class smart energy service provider, transitioning from a manufacturing-focused model to a technology and service-oriented approach [9]. - The company has invested approximately 1 billion RMB in the development of its self-developed gas turbine over 11 years, with plans for further advancements in this area [8][9]. - The successful "B to A" conversion and the ignition of the self-developed gas turbine mark a new starting point for the company's growth trajectory [9].