Core Viewpoint - The acquisition of Shanghai Shuhang Technology by Hengwei Technology marks the first AI RaaS merger in the A-share market, indicating significant progress in the merger process despite recent market volatility and rumors [1][2]. Group 1: Acquisition Details - Hengwei Technology's core management team visited Shanghai Shuhang Technology on October 11, which is seen as a positive step in advancing the merger [1]. - The acquisition involves Hengwei Technology purchasing 75% of Shanghai Shuhang Technology, with performance commitments for net profits of no less than 48 million, 72 million, and 105 million yuan for the years 2025 to 2027, respectively [1]. - The merger is expected to lead to substantial net profit growth for Hengwei Technology, indicating a strong financial outlook [1]. Group 2: Market Reaction - Following the announcement of the management visit, Hengwei Technology's stock price rebounded after experiencing a significant drop due to market speculation and rumors about the merger's viability [1]. - Prior to the visit, Hengwei Technology's stock had reached a limit-up on the day before the holiday but faced a limit-down on the first trading day after the holiday, suggesting manipulation by short-sellers [1]. Group 3: Strategic Implications - The merger is positioned as a strategic move to enhance technological and business synergies, with discussions on collaboration for overseas market expansion by Q4 2025 [1]. - The involvement of investment firm Rongyi Investment, which also invests in leading robotics company Yushu Technology, underscores the focus on future technology directions and the potential of niche leaders in the market [2].