Hengwei Technology has responded to a regulatory work letter from the Shanghai Stock Exchange regarding the reasons and reasonableness of changing its acquisition plan for Shuheng Technology from share issuance to cash payment. The company stated that it originally planned to acquire 75 percent equity in the target through a combination of share issuance and cash, but terminated that plan in March 2026 and switched to a cash acquisition of 51 percent equity, signing an investment agreement in June. The adjustment was mainly based on the strategic window period in the AI application industry, the target's approximately 101 percent year-on-year revenue growth in 2025, and the higher efficiency of a cash acquisition. It adopted a combined approach of cash purchase of equity plus a 30 million yuan capital injection into the target, reducing integration risks, avoiding dilution of existing shareholders and the controlling shareholder's stake, and ensuring control stability. The company has 388 million yuan in its own funds and plans to apply for a merger and acquisition loan of no more than 373 million yuan, which can fully cover the transaction price. The company stated that the change in plan is a market-oriented commercial decision, and there is no situation such as using the cash acquisition to circumvent issuance review or engaging in benefit transfers.
EmbedWay Tech(Shanghai)CorpThe acquisition by Hengwei Technology with cash payment and capital injection indicates a positive valuation and growth prospects for Shuheng Technology, given its 101% revenue growth.