On April 10, Weide Information (688171) disclosed the investment plan, and the company intends to increase the capital to Beijing Shuangzhou Technology in cash and all the funds will be used for the company's operation. After the completion of this capital increase, the company will obtain 50.10% of the equity of Shuangzhou Technology and become the controlling shareholder of Shuangzhou Technology. Weide Information said that the proposed acquisition target has been rooted in the main business of information security for many years, and the market development potential of military customers is great, and this transaction will be an important measure for the company to seek increments.

According to the announcement, Shuangzhou Technology will achieve an operating income of 16.3211 million yuan, a net profit of 3.6344 million yuan, and a net asset of -3.261 million yuan in 2024. The overall pre-investment valuation of Shuangzhou Technology is about 150 million yuan, and whether the valuation is reasonable has attracted market attention. In this regard, Weide Information said that Shuangzhou Technology's main business is information security software, not only look at the net assets index, the negative net assets are mainly due to its huge investment and research and development in a key project for more than 6 years, and the current Shuangzhou Technology has sufficient orders in hand, and the company's profitability is expected to increase rapidly.

After landing on the Science and Technology Innovation Board in 2022, Weide Information's revenue and net profit have declined one after another, and its revenue will fall below the threshold of 100 million yuan in 2024, with a net profit of 11.9795 million yuan. In this context, seeking incremental business and performance will be a problem that listed companies must solve.

According to the data, Shuangzhou Technology was established in 2006, and its main business is product development and sales based on information security software products and digital twin drive software. Shuangzhou Technology's main customers include the party, government, military and other departments, as well as related military research institutes, enterprises and other system integrators.

According to Shuangzhou Technology, the company has continued to invest tens of millions of yuan in recent years, and urgently needs capital transfusion to implement and deliver related orders.

Shuangzhou Technology further stated that the company's customer resources are unique in China, and the information security and confidentiality requirements can be called the ceiling level. For example, the entry threshold for the standardized products of the above-mentioned units is extremely high, and the order amount is huge, and its follow-up extension services and products Shuangzhou Technology will be qualified and capable of undertaking them. Shuangzhou Technology, as a domestic substitute company for information and innovation, is currently on the tuyere, and the company's follow-up orders are full and sufficient. The shareholders of the company are full of confidence in the development of the company, and also hope to bind the resources of the listed company, serve and expand more customers, so they are willing to sell the controlling stake at a relatively cheap valuation.

Weide information said that the company attaches more importance to the acquisition of the target enterprise entry threshold and its unique customer resources, Weide information and Shuangzhou technology has been in contact for a long time, the two sides can be described as "love at first sight", if it is not for Shuangzhou technology encountered financial difficulties, Weide information is unlikely to have the opportunity to take this company into the bag.

For the purpose of this investment in Shuangzhou Technology, Weide Information said that the main business of Shuangzhou Technology is the research and development and sales of domestic information security software, and it has rich technical reserves and research and development experience in relevant information security products, and has also accumulated a relatively stable customer base in related business fields. If the equity investment is completed, it will help the company further integrate R&D, technology, market and other resources in the field of information security, increase market share, and improve comprehensive competitiveness. (Wen Sui).