Zhishang Technology plans to acquire 99.86% of Hengyang Data for 1.148 billion CNY, aiming to enhance its capabilities in AI computing and data processing.

Target Information

Zhishang Technology announced its intention to acquire approximately 99.86% of Hengyang Data Co. for 1.148 billion CNY through a combination of stock issuance and cash payment. The transaction involves a payment of 804 million CNY in shares and 344 million CNY in cash. Upon completion, this acquisition will expand Zhishang Technology's total share capital without altering its controlling shareholder status. Hengyang Data specializes in smart computing and data processing solutions, providing essential infrastructure for AI computing and cloud data centers. Zhishang Technology, on the other hand, focuses on parts for consumer electronics, communication electronics, and industrial automation, indicating a strategic shift towards enhancing its data communication capabilities.

Industry Overview in China

The merger and acquisition landscape in China's digital economy has shown signs of decline lately. In August 2025, a total of 89 disclosed M&A deals were reported, representing a slight decrease of 2.2% from July. Notably, the transaction value plummeted significantly by 73.27%, dropping from 40.465 billion CNY to just 10.818 billion CNY due to a scarcity of large-scale M&A transactions. Domestically, semiconductor acquisitions became prevalent, exemplified by significant transactions involving firms like Zhishang Technology and Kaipuyun. On the international front, notable M&A activities were centered in the software sector, with private equity firm Thoma Bravo making headlines through substantial acquisitions in August.

The Chinese semiconductor market has been attracting investments aimed at enhancing economic competitiveness and technological independence. Companies are increasingly pursuing strategic acquisitions to bolster their offerings in high-growth areas, such as AI and cloud computing. As the demand