With continuous losses in performance

[shapanwwuopi]

Songfa shares urgently need a turnaround.

On October 1, 2024, Songfa Group announced that it plans to acquire 100% of the equity of Hengli Heavy Industries, which is expected to constitute a major asset reorganization.

It is reported that the controlling shareholders of Songfa Holdings and Hengli Heavy Industries are both Hengli Group Co., Ltd., and Hengli Heavy Industries' main business is the research and development, production and sales of ships and high-end equipment .

After the transaction is completed, Songfa’s main business will change from the original ceramic products to shipbuilding industry, making it the first A-share private shipbuilding stock.

It should be noted that in this transaction, Songfa shares linkedin data need to add 893 million shares of share capital, and the total share capital after the reorganization will become 1.017 billion shares. Based on the latest share price of 40.4 yuan per share, the total market value of Songfa shares after the reorganization will exceed 40 billion yuan.

Based on the valuation conclusion of the valuation base date of September 30, 2024, the book value of Hengli Heavy Industry's net assets is 2.99 billion yuan, and the valuation of all shareholders' equity is 8 billion yuan.

After this transaction, Hengli Heavy Industries was able to achieve a 5-fold increase in value, which can be called a miracle in the capital market.

In addition, performance commitments were made in this transaction. The counterparty of the transaction promised that Hengli Heavy Industry's cumulative net profit attributable to shareholders after deducting non-operating expenses from 2025 to 2027 will
Currently, the transaction is under review by the Shanghai Stock Exchange and there is still uncertainty.

Due to the planning of major asset reorganization, the stock price of Songfa Group had previously achieved 14 consecutive daily limit increases, and hit an all-time high of 54.53 yuan/share during intraday trading on November 5, 2024. In 17 trading days (September 25, 2024 to November 5, 2024), it has accumulated an increase of more than 321%, and has now retreated by more than 26%.