Shahe Co. Ltd.'s acquisition of Jinghua Electronics was approved by a large margin, and in the fourth quarter, QFII increased its holdings by 4,692,700 shares.

[Global Network Financial News] After the market close on March 23, 2026, Shahe Co., Ltd. (000014.SZ) announced that at the second extraordinary general meeting held on the same day, over 82% of the valid voting rights of attending shareholders approved 21 proposals, including a major asset purchase and related-party transaction to acquire a 70% stake in Shenzhen Jinghua Display Electronics Co., Ltd. for 274 million yuan. This marks a significant step toward the substantive implementation of this highly关注的 state-owned enterprise strategic transformation project.

Data shows that due to deep adjustments in the real estate industry, Shahe Co. experienced operational pressure in 2025. The restructuring is a key measure to break through the bottleneck of a single business structure and achieve breakthrough development. This restructuring responds to the strategic layout of Shenye Group and aims to realize strategic transformation. By acquiring Jinghua Electronics, a national-level specialized and innovative “Little Giant” enterprise, the company has successfully expanded from traditional real estate into advanced manufacturing sectors such as smart displays and industrial control, promoting the orderly exit of state capital from the traditional real estate sector and achieving the dual goals of “optimized state capital deployment and sustainable corporate development.”

Public information shows that Jinghua Electronics, the acquired company, has been deeply engaged in human-machine interaction displays and intelligent control for nearly 40 years. It holds 49 patents, with products widely used in high-growth fields such as smart homes and industrial automation. Its clients include global giants like Daikin, Schneider, Kohler, and Gree, with over 50% of revenue from overseas markets. In the first three quarters of 2025, Jinghua Electronics achieved a net profit of 38.54 million yuan. The transaction party has committed that from 2026 to 2028, the cumulative net profit excluding non-recurring gains will not be less than 121 million yuan, with dual safeguards of cash compensation and impairment testing.

Analysts say that with the completion of this acquisition, Shahe Co.'s asset quality, profitability, and growth logic will undergo a fundamental transformation. It not only marks the first move in Shenzhen’s state-owned assets restructuring “Three-Year Action,” but also provides a replicable path for similar state-owned listed companies to achieve industrial upgrading through mergers and acquisitions.

According to Wind data, in Q4 2025, QFII increased holdings in nine stocks, with Shahe Co. receiving an additional 4.6927 million shares, ranking second in the market.