Xinghua New Materials (301077.SZ) plans to acquire 70% of Dongwang Technology's shares for 140 million yuan

Zhitong Finance App News, Xinghua New Materials (301077.SZ) announced that the company signed an “Equity Transfer Agreement” with Dongwang Intelligent Technology (Shanghai) Co., Ltd. (hereinafter referred to as “Dongwang Technology”). The company will use its own or self-raised funds to purchase 70% of Dongwang Technology's shares from Dongwang Technology's original shareholders He Yundong and Zhang Guofa. The parties to the transaction combined Dongwang Technology's industry valuation and its own business situation and future development prospects. The transaction price was 140 million yuan. After the transaction was completed, the company became the controlling shareholder of Dongwang Technology and included it in the scope of the consolidated statement.

Dongwang Technology is in the field of artificial intelligence, driven by policy support, technological progress and accelerated commercialization. Dongwang Technology's business involving AI computing power infrastructure, AI applications and commercialization is expected to develop rapidly. Therefore, Dongwang needs continuous R&D investment and capital investment, and the financial strength of listed companies will help Dongwang Technology seize the opportunities released by downstream demand.

After the transaction is completed, listed companies will achieve strategic transformation, further enter fields related to artificial intelligence and computing power on the basis of their original business, create a second growth curve, accelerate the pace of transformation to new quality productivity, and add new profit growth points, thus further improving the sustainable profitability of listed companies.