The Science and Technology Innovation Board Daily October 26th news (Reporter Wu Xuguang) On the evening of October 25th, Gridsum DeepEye announced that the company plans to increase capital and cash to acquire the equity of Shenzhen Guoke Yidao Technology Co., Ltd. (referred to as the 'target company' or 'Guoke Yidao').

On October 25th, Gridsum DeepEye and the target company, represented by Zhang Qiang, signed a 'Equity Investment Intention Agreement.' After completion of this transaction, the company's shareholding or voting rights in the target company shall not be less than 51%, achieving control over the target company.

The Science and Technology Innovation Board Daily reporter noted that looking at the ownership structure of the target company, its largest shareholder is Beijing Guoke Huanyu Technology Co., Ltd., with a subscription ratio of 21.0417%. Beijing Guoke Huanyu Technology Co., Ltd. is affiliated with the Chinese Academy of Sciences, providing electronic products and solutions to users in the aviation, aerospace, and military fields.

An industry expert who has conducted in-depth research on Gridsum DeepEye told the Science and Technology Innovation Board Daily reporter that in this acquisition, Gridsum DeepEye attaches more importance to the target company's customer resources in the military industry, which can complement its existing computer vision technology and help expand Gridsum DeepEye into new product business areas.

Gridsum DeepEye stated that there are synergies between the company and the target company in terms of technology products, supply chain, and industry market. This transaction will strengthen the company's hardware design, research and development, accelerate the implementation of the integrated strategy for artificial intelligence hardware and software products.

Guoke Yidao was established in 2017, mainly focusing on providing terminal computing devices with domestic chips at the core for the military industry. The product forms include mainboards based on domestically produced chips, as well as reinforced and domestically produced tablet computers, laptops, and more.

Public information shows that Guoke Yidao has relevant qualifications in the military industry and its products have been successfully used in the military industry as supporting products for certain models. In June of this year, Guoke Yidao completed Series B+ financing, with the Air Force as the investor.

According to the query by the reporter of "Science and Technology Innovation Board Daily", Beijing Jiuhui Huana Enterprise Management Group Co., Ltd. released the introduction of the Guoke Yidao capital increase project in March this year. The introduction shows that Guoke Yidao is expected to achieve total revenue of 14.1662 million yuan, 21.2068 million yuan, 34.5706 million yuan, and 45.0239 million yuan from 2020 to 2024, and net profits of 0.0401 million yuan, 0.1002 million yuan, 1.3872 million yuan, and 2.6061 million yuan respectively.

"From the performance perspective, it shows an upward trend, and compared to the target company's performance growth, the military industry theme to which it belongs is also worthy of sustained attention," said the aforementioned industry market source.

Of note, on the same day the acquisition proposal was released (October 25), Grinm Sericin disclosed the third quarter report for 2024. The announcement shows that the company's revenue for the first three quarters was 60.6643 million yuan, a decrease of 72.99% year-on-year, with a net loss of -0.138 billion yuan attributable to shareholders of the listed company.

Regarding the reasons for the decline in performance, Grinm Sericin stated that due to the comprehensive digital transformation demand from Agricultural Bank of China, the company's products needed to undergo localization adaptation and testing, leading to delayed product delivery. This resulted in reduced revenue from the Agricultural Bank of China during the reporting period. The company's products have now completed the localization adaptation and passed the Agricultural Bank of China's testing; it is expected to launch new localized products for sale in the near future.