Doright Co.,Ltd. announced on the evening of November 7 that it plans to terminate a major asset restructuring deal due to difficulties in reaching a mutually satisfactory agreement within the effective timeframe. The company had initially intended to acquire 100% equity of Whale Cloud Technology through a combination of share issuance and cash payment, aiming to establish a second growth curve.
As of November 7, Doright's stock closed at 32.66 yuan per share, with a total market capitalization of 4.98 billion yuan. The company reported 15,740 shareholders as of October 31.
The termination stems from unresolved disagreements over key terms, including valuation and performance commitments. Whale Cloud's major shareholders, including ZTE Corporation, failed to align with Doright on these critical aspects. Doright stated that terminating the deal would protect the interests of the company and its shareholders.
The termination process requires board approval, internal deliberations by involved parties, and the signing of termination agreements. Doright has committed to refrain from initiating another major asset restructuring for at least one month following the announcement.
Whale Cloud Technology, an international software and IT service provider, specializes in cloud computing, big data, and AI-driven digital transformation solutions. Despite its growth potential, the company reported a net loss of 133 million yuan in Q1 2025, following profits of 202 million yuan in 2023 and 205 million yuan in 2024.
Doright, a high-tech energy-saving and environmental protection equipment manufacturer, has faced increasing industry competition. Its net profit for the first three quarters of 2025 declined by 26.39% year-on-year to 72.26 million yuan.
The failed acquisition would have expanded Doright's business into telecom software, cloud and AI services, and digital solutions. The company assured that the termination would not adversely affect its normal operations.
Comments