According to Caijing News on December 29 (Reporter Liang Xiangcai), Sufa Technology Industry (000777.SZ) has temporarily suspended trading due to a significant asset restructuring. The company, with a net income at the billion level, previously intended to raise 2 billion yuan on the Star board but 'failed' and is now seeking another listing route.

Today, Sufa Technology Industry announced that the company received notification from China National Nuclear Power Group, which is planning to issue shares to purchase assets and raise supporting funds for related party transactions (hereinafter referred to as this Trade).

The announcement shows that this Trade is still in the planning stage and preliminarily determined to acquire a 71.9650% stake in Sufa Western Instrument, which was transferred without compensation after accepting it from China National Nuclear Power Engineering Co., Ltd. (hereinafter referred to as China National Nuclear Power Engineering); the transaction intentions of other shareholders have not yet been finally determined.

Furthermore, according to relevant laws and regulations, this Trade is expected to constitute a significant asset restructuring. China National Nuclear Power Engineering is a wholly-owned enterprise of the controlling shareholder, China National Nuclear Power Group, and the transactions that occur with it constitute related party transactions; this restructuring will not result in a change of the company's actual controller.

The suspension time is until December 30, 2024, with the expectation of not exceeding 10 trading days to further disclose relevant information in accordance with related requirements and apply for the company's stock resumption.

Regarding the reason for this Trade, Sufa Technology Industry mentioned in the announcement that it aims to further integrate nuclear industrial equipment manufacturing Business and promote the high-quality development of listed companies.

According to Tianyancha, Sufa Western Instrument's total operating revenue for 2020-2021 was 0.554 billion yuan and 0.795 billion yuan, respectively, while the net income for the same period was 0.119 billion yuan and 0.17 billion yuan, and the owner's equity was 1.105 billion yuan and 1.275 billion yuan, respectively.

According to financial data from Sufa Technology Industry, the company's total operating income from 2020 to 2023 was 1.167 billion yuan, 1.558 billion yuan, 1.5 billion yuan, and 1.81 billion yuan respectively, while the net income for the same period was 0.105 billion yuan, 0.12 billion yuan, 0.172 billion yuan, and 0.222 billion yuan respectively. The owner's equity during this period was 1.544 billion yuan, 1.665 billion yuan, 1.796 billion yuan, and 2.001 billion yuan respectively.

From the historical financial data of the two companies, the target company in this Trade has stronger profitability in certain years.

In fact, China National Nuclear Power has long intended to push China National Nuclear Power West Instrument towards the Capital Markets. In September 2022, the company planned to undergo an IPO on the Star and was accepted by the Shanghai Stock Exchange; however, this push was terminated in March 2023 after six months.

According to the prospectus at that time, China National Nuclear Power West Instrument intended to issue no more than 0.12 billion shares, planning to raise 2 billion yuan. This funding would be used for the first phase construction project of the nuclear safety protection industrial base, intelligent industry R&D project, information system construction project, and to supplement working capital.

According to the official website of China National Nuclear Power West Instrument, the company was established in 1969 and is a large enterprise of instruments and meters under China National Nuclear Power. It has now become an important manufacturing enterprise for nuclear power equipment of the group and is a well-known manufacturer and integrator of nuclear radiation monitoring systems, fire alarm Control System, and physical protection systems in the domestic nuclear field.

In terms of products, China National Nuclear Power West Instrument can provide products or system integration and maintenance services in eight major application areas including radiation monitoring and environmental monitoring, fire alarm, fire extinguishing, physical protection, nuclear emergency, plant communication, industrial Television monitoring, and nuclear medicine and industrial isotopes.