On November 5th, the Science and Technology Innovation Board Daily (Reporter Chen Mei) reported that today, Daqian Ecology (603955) opened with a limit-up. The company announced last night that they have signed a "Equity Transfer Agreement" with Suzhou Bubugao Investment Development Co., Ltd. From now on, Suzhou Bubugao will become the new controlling shareholder of Daqian Ecology.

According to the data from Caishiliantong, the ultimate beneficiary of Suzhou Bubugao is Zhang Yuan, who has connections with Xaomi Corporation, as well as the founder of Bubugao, Duan Yongping. This has attracted significant attention to the equity transfer matters of the company.

This morning, a reporter from the Science and Technology Innovation Board Daily called the secretary of Daqian Ecology as an investor. The company's secretary mentioned that after the completion of the equity transfer agreement, there will be changes in personnel in the board of directors and the supervisory board. "The main reason for the change in controlling shareholders this time is that the industry where the original controlling shareholder is located has been affected by the real estate market, and the industry's development is not ideal. Therefore, they aim to introduce high-quality resources through the new controlling shareholder to help the company transform and find new profit growth points."

The reporter from the Science and Technology Innovation Board Daily noticed that after this change in controlling shareholder rights, the original controlling shareholder of Daqian Ecology still retains a 5% equity stake.

Affected by this news, Daqian Ecology, which resumed trading today, opened at the limit-up with a stock price of 10.59 yuan per share. When planning the change in control rights, the company's closing price was 9.63 yuan per share. Calculated at 15 yuan per share in Suzhou Bubugao's entry, the above transaction premium rate reached 55.76%.

0.368 billion yuan, Duan Yongping's "disciple" arrives

The company planning to take over Daqian Ecology has quite a background. The resume shows that the ultimate beneficiary of Suzhou Bubugao, Zhang Yuan, is a member of the Bubugao family. He previously served as a director at Guangdong Bubugao Electronics Co., Ltd., and founded Suzhou Bubugao Investment Development Co., Ltd. in November 2016.

Before that, Zhang Yuan served as the general manager of Nanjing branch of Zhongshan Xiaobawang Electronic Industry Co., Ltd., which was one of Duan Yongping's starting points in business.

In the 1990s, after Duan Yongping took over Xiaobawang, he achieved a production value of 1 billion yuan in three years. Later, Duan Yongping founded BBK Electronics Co., Ltd. in Dongguan, achieving success in the fields of educational electronics, audio-video electronics, and communication technology.

Before retiring, Duan Yongping spun off BBK into three independent companies, each managed by his three 'disciples', which have now developed into well-known brands such as OPPO and VIVO. It is worth mentioning that Huang Zheng, the founder of PDD with a market cap exceeding $160 billion, also had Duan Yongping as his 'life coach'.

According to disclosures, Zhang Yuan, also from the BBK 'family', is currently a director of OPPO and a non-executive director of Jitu Express, both brands associated with Duan Yongping.

Also of interest is the price change in the controlling shareholder. According to the announcement, Suzhou BBK intends to acquire 24.5488 million shares of Daqian Ecology at a price of 15 yuan per share, accounting for 18.09% of the shares. After the equity transfer, Suzhou BBK will become the largest shareholder of Daqian Ecology, with a total transfer price of 0.368 billion yuan, funded from its own resources.

Suzhou BBK has already laid out in the fields of AI and intelligent robotics.

According to Cailian Venture Capital Database, Suzhou BBK is an investment company, mainly engaged in investments in the real estate industry, property management, private equity investments, etc.; Daqian Ecology, on the other hand, is a landscape architectural design company.

In terms of business performance, Daqian Ecology has been mediocre in the past few reporting periods. Data shows that by the end of 2023, Daqian Ecology's EPS was -0.614 yuan, and the EPS for the first three quarters of this year was 0.11 yuan. Among these, the main operating income in the first three quarters fell by 20.85% year-on-year, and the net income attributable to the parent company fell by 6.26% year-on-year.

Daqian Ecology's secretary of the board stated, "Due to the fact that the original controlling shareholder has always been in the landscape architecture design industry, it was not easy for the original management team to transform, hence the introduction of a new controlling shareholder with strength. At the same time, the company also made relevant disclosures earlier this year."

As of now, in the announcement, Suzhou Step High stated that there are currently no clear plans to change the main business of the listed company in the next 12 months. At the same time, there are no plans within the next 12 months to continue to increase or dispose of its equity interests through the secondary market, agreement transfer, subscribing for new shares issued by the listed company.

In response, the secretary of the board of Daqian Ecology stated that at the current stage, the main focus is on maintaining the company's original main business. "After the new controlling shareholder comes in, only then will we consider new transformation directions."

As an investment company, Suzhou Step High has made multiple moves. According to Financial Association's venture capital data, Suzhou Step High has participated in 14 early-stage investment projects, involving angel rounds, strategic investments, and Series A rounds, mainly in high-tech industries such as artificial intelligence, smart robots, semiconductor chips, and communications.

Suzhou Step High also acts as an LP and has contributed 44.33% of the capital in Zhuhai Zhongjun Anpeng Intelligent Manufacturing Investment Fund (limited partnership). The fund has invested in companies such as Wuhu Mengbo, Futubull Autos, and E-Chuang.

An investor told the Star Market Daily reporter that looking at the projects initiated by Suzhou Step High, the related companies are in hot sectors. "These companies require significant financial support in the early stages. It's worth paying attention to which type of assets Suzhou Step High will link with Daqian Ecology in the future."

In the view of this investor, "One of the most obvious benefits of acquiring a listed company is that listed companies have strong financing capabilities. As long as there are good projects and targets, relevant project capital operations can be achieved through the listed company platform."