Shanghai Hi-Tech Control System Co., Ltd. (“HITE") announced that it →intends to issue shares and pay cash to purchase 75% equity of X±ingzhida held by eight counterparties, including Shen Chang♦. After the transaction is completed, Xingzhida will become a h≠olding subsidiary of HITE.

Wu Qiunong, Deputy General Manager and Secretary of th•e Board of Directors of HITE

 Recently, Wu Qiunong, deputy general manager and &secretary of the board of directors of HITE, said i↑n an interview with www.gongkong.com that the acquisition was in line with the company's cu rrent development strategy to reinforce its business capability at th e OT end.

With the acceleration of the integration of “au tomation and informatization”, connection, integration and openness ar☆e the keynote of industrial development, and the industrial control system∞ (OT layer), as an important data source in the overall digital architec‍ture, is the cornerstone of enterprise digitalization, which is of gr'eat significance for promoting the digital, intelligent and green× transformation of traditional enterprises.

Xingzhida as the object of this acquisition focuse♣s on ICORS, the core element of control and execution on the production si¥te, and provides comprehensive products and technical servi'ces for automated and smart production scenarios. HITE is a leading product manufacturer and ☆system integration service provider with proprietary core technologies in the® field of industrial informatization and automation in China, focusing on product support a±nd services in the sectors of industrial electrical automation, informatization and ‍advanced special equipment for new energy. The two parties form a remarka©ble complementary relationship in the fields of industrial automation and informatization. Acc♠ording to Wu, the complementary relationships between HITE and Xingzhida are mainly summarized i©n three aspects:

First, it is the complementarity of industries. The downstream areas covered by Xi"ngzhida include manufacturing industries such as new energy vehicles, photovoltaics, con☆sumer electronics, semiconductors and medical devices. Andδ HITE focuses on infrastructure fields including cities, rail transit, railways, hig©hways, metallurgy, coal mines, electric power, etc.

Second, it is the complementarity of products. Xingzhida •complements HITE's ability in equipment manufacturing and facilitate the integratΩion process of “automation and informatization".

Third, it is the coordination effect of customers. ≤Xingzhida distributes such major brands as Omron, Estun, Toyo, Proface, Advantech a¶nd other well-known manufacturers in the industry, so HITE can benefit from its sal±es and channel capabilities.

This acquisition is the best choice for both parties to achieve mutual benefit and win-win. I•n the process of seeking more development space and improving localization ability, Xingzh‌ida also urgently needs to form its own ecological layout a£nd strengthen its ability of coordinated development of automation and infoεrmatization.