Acquisition Announcement
Hygon Information Technology Co., Ltd. (SHSE:688041) announced on May 25, 2025, that it has signed a letter of intent to acquire Dawning Information Industry Co., Ltd. (SHSE:603019). The acquisition will be executed through a share swap, where Hygon will issue A shares to all A share shareholders of Dawning Information Industry in exchange for their shares. Additionally, Hygon will issue A shares to raise supporting funds for the transaction.
As a result of this announcement, the A shares of Dawning Information Industry Co., Ltd. were suspended from trading starting from the market opening on May 26, 2025. The transaction is subject to necessary internal decision-making procedures and approval from regulatory authorities, introducing uncertainty regarding its implementation.
Company Background
Hygon Information Technology Co., Ltd. specializes in the development, manufacture, and marketing of high-end processors used in computing and storage devices such as servers and workstations. The company has 2,392 employees and operates in the semiconductors sector.
Recent Developments
This acquisition is part of Hygon’s strategic expansion in the technology sector. The company’s recent financial reports show significant growth, with a 75.3% increase in net profit for the first quarter of 2025 compared to the previous year.
Market Reaction
At the time of the announcement, Hygon Information Technology Co., Ltd.’s stock price was 136.13 CNY, with a 0.00% change on the day and a -1.70% change over five days. Dawning Information Industry Co., Ltd.’s stock price was 61.90 CNY, with a -0.90% change on the day and a -1.50% change over five days.
The acquisition’s impact on the market and the future performance of Hygon Information Technology Co., Ltd. will depend on the successful completion of the transaction and subsequent integration of Dawning Information Industry Co., Ltd.’s assets and operations.
