On the evening of June 9, Huasheng Co., Ltd. (600156.SH) issued an announcement stating that the company is planning to purchase 100% of the equity of Shenzhen Yixin Technology Co., Ltd. (hereinafter referred to as "Yixin Technology") through the issuance of shares and payment of cash, and plans to issue shares to raise supporting funds.
Huasheng Co., Ltd. stated that this transaction constitutes a major asset restructuring, does not constitute a restructuring and listing, and will not cause changes to the company's controlling shareholder and actual controller, and constitutes an related transaction. The transaction is still in the planning stage. The parties to the transaction have not signed a formal transaction agreement yet. The specific transaction plan is still under discussion in the business, and there is still uncertainty. The company's stock will be suspended from trading since the opening of the market on June 10, 2025, and the expected suspension time will not exceed 10 trading days.
Yixin Technology's official website shows that since its establishment in 2004, the company has been deeply engaged in the data center industry and is committed to building a "green and energy-saving data center". The business covers data center server rental/hosting, cabinet customization, large bandwidth in the computer room, IDC value-added services, and data center energy-saving products and solutions.
The 2024 annual report shows that Huasheng Co., Ltd.'s main products are ramie yarn, ramie blended yarn, ramie, linen, hemp fabrics, clothing, home textiles, industrial textiles, etc. The ODM/OEM and clothing independent brand business have developed together and have initially formed a clothing brand matrix. The company owns well-known fabric brands in the textile industry such as "Cedar", "Dongting" and "Jinshuang". If this transaction is completed, it means that the company will enter the IDC business field.
Yixin Technology was previously listed on the New Third Board, achieving operating income of 166 million yuan and net profit of 24.28 million yuan in 2017. The announcement shows that the counterparty of Huasheng Co., Ltd.'s transaction is the existing shareholders of Yixin Technology, including Baibentong (37.29%), Zhang Liming (11.47%), Shenzhen Dachen Chuanghong Private Equity Investment Enterprise (Limited Partnership) (6.10%), etc. At present, Huasheng Co., Ltd. has signed the "Cooperation Intent Agreement" with Bai Bentong, Zhang Liming, Shenzhen Dachen Chuanghong Private Equity Investment Enterprise (Limited Partnership), etc.
In terms of performance, Huasheng Co., Ltd. achieved operating income of 778 million yuan in 2024 and net profit attributable to shareholders of -49.336 million yuan; in the first quarter of 2025, revenue of 214 million yuan, net profit attributable to shareholders of -12.5023 million yuan.
Due to inaccurate information disclosure and inadequate internal control management, Huasheng Co., Ltd. was ordered by the Hunan Regulatory Bureau to correct the problem in April this year. Senior executives such as Liu Zhigang, General Manager Liao Yongqiang and other senior executives were warned and recorded in the integrity file. Huasheng Co., Ltd. was asked to comprehensively sort out the weak links in corporate governance, information disclosure, financial management, etc.; strictly implement financial and accounting management systems, improve the professionalism and standardization of financial management, and ensure that information disclosure is true, accurate and complete.
On May 6, Huasheng Co., Ltd. issued an announcement on executive changes, and the company announced the election of Xie Ping as the company's chairman. Xie Ping had previously held management positions in many state-owned enterprises such as Hunan Development Asset Management Group Co., Ltd.
For this cross-border acquisition, Huasheng Co., Ltd. stated in the announcement that there is still uncertainty in this transaction. For specific plans such as the final counterparty and the scope of the target assets, the information disclosed in the subsequent restructuring plan or the restructuring report shall prevail.
(Author Wang Junyong)
