Zhejiang Jinlihua Electric Co

Jinlihua Electric hit the 20 percent daily limit up just 3 minutes after the market opened on August 19. As of 2:01 pm, the stock traded at 34.66 yuan, with turnover exceeding 16 percent and transaction value surpassing 600 million yuan. The stock has more than doubled year to date. Earlier, on August 17, the company announced plans to acquire an 82.5 percent stake in Xi'an Zhongke Xiguang Aerospace Technology Group through a combination of share issuance and cash payment, and to issue shares to its controlling shareholder, Shanxi Red Sun Tourism Development, to raise supporting funds. The transaction constitutes a related-party transaction and is expected to constitute a major asset restructuring but not a reverse merger. Zhongke Xiguang is a commercial aerospace company focused on fully self-developed hyperspectral satellites and remote sensing data services. Upon completion, it will become a controlled subsidiary of Jinlihua Electric. The company also cautioned that the transaction still requires further review by the board of directors, approval by the shareholders' meeting, review by the Shenzhen Stock Exchange, and registration with the China Securities Regulatory Commission. Due diligence, audit, and valuation have not yet been completed, and significant uncertainty remains. As of April 30, 2026, Morgan Stanley, Goldman Sachs International, and UBS Group had newly become the company's sixth, seventh, and eighth largest shareholders, with stakes of 0.85 percent, 0.77 percent, and 0.64 percent respectively.