Huasheng Co.,Ltd.'s major asset restructuring plan has recently achieved significant progress. According to an announcement, Hunan Huasheng Co.,Ltd. intends to acquire a 97.40% stake in Shenzhen Yixin Technology Co., Ltd. from 25 parties, including Bai Bentong and Zhang Limin, through a combination of share issuance and cash payment. The company will also issue shares to its controlling shareholder, Hunan Xingxiang Investment Holding Group Co., Ltd., to raise supporting funds.
The total acquisition price has been set at 662.3417 million yuan. Approximately half of the consideration, amounting to 331.1709 million yuan, will be paid in cash, with the remainder settled through the issuance of new shares.
As a textile enterprise listed in 1998, Huasheng Co.,Ltd. has faced persistent operational pressures in recent years.
Financial data reveals that the company's operating revenue for 2022, 2023, and 2024 was 911 million yuan, 581 million yuan, and 778 million yuan, respectively. Its net profit attributable to shareholders was -208 million yuan, 21.0231 million yuan, and -49.336 million yuan for those years, with its non-GAAP net profit having been in the red for 17 consecutive years.
The transacting parties have signed a definitive "Performance Commitment Compensation Agreement." The commitment period covers the fiscal years 2026, 2027, and 2028, during which the committing parties guarantee that the cumulative non-GAAP net profit attributable to shareholders of the target company will be no less than 162 million yuan.
This implies an average annual committed net profit of approximately 54 million yuan. For reference, public data shows that Yixin Technology's net profit attributable to shareholders was 5.5329 million yuan in 2023 and 17.2789 million yuan in 2024. The commitment figures suggest high expectations for future earnings growth.
This acquisition is undoubtedly a classic cross-border merger. Huasheng Co.,Ltd.'s traditional core business is the textile manufacturing of bast fiber specialty products, whereas Yixin Technology is deeply entrenched in the AIDC (AI Data Center) sector, focusing on full-lifecycle services for green computing power infrastructure.
Yixin Technology's products and solutions are utilized by major industry clients such as China Mobile, China Telecom, SF Express, and Yunshan Li Fei.
However, cross-border mergers face numerous challenges. While they can create a win-win situation for the transacting parties, investors, and intermediaries in the short term, the subsequent integration difficulties should not be underestimated.
The acquisition target, Yixin Technology, was established in July 2004 and has been rooted in the internet infrastructure services sector for many years. Its business encompasses data center server leasing/hosting, custom cabinet solutions, large bandwidth for data centers, IDC value-added services, and energy-saving products and solutions for data centers.
Financially, Yixin Technology's net profit attributable to shareholders was 5.5329 million yuan in 2023 and 17.2789 million yuan in 2024, demonstrating a growth trend.
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