According to Zhitong Finance App, Hengxin Technology (01085) announced that on May 20, 2024, the buyer (Xinkexin (Suzhou) Technology Co., Ltd., an indirect wholly-owned subsidiary of the company) plans to acquire the remaining 49% of the shares of each target company (Nanjing Zhangyu and Shanghai Zhangyu) from the seller (Xuzhou Jinkan and Mr. Baiyuanliao) at a cost of RMB 522 million in cash.

Nanjing Zhuangyu is mainly engaged in the development, design and sales of integrated circuits, digital products, computer hardware, computer technology applications and software, as well as technical consulting and technical services. Shanghai Zhangyu is mainly engaged in providing cybersecurity and software solutions for the financial industry. After the transaction is completed, the company will indirectly hold all of the target company's shares through the buyer, and the financial statements of each company within the target group will continue to be incorporated into the group's financial statements.

The board of directors believes that the acquisition allows the group to fully control the management and operation of the target company, simplify the decision-making process, and enable the company to promptly implement strategic plans that meet the company's business goals. Furthermore, once the target company becomes a wholly-owned subsidiary of the company after the transaction is completed, the company will also be able to simplify regulatory reporting and approval procedures and save costs associated with related transactions involving the target company, thereby improving operational efficiency.