Qidian Guofeng strengthens AI capabilities with strategic acquisition

China Qidian Guofeng Holdings Limited announced an update on its acquisition of AI technology company, Shanghai Huiliu, which specializes in AI-driven enablement services for interest-based e-commerce. The target company, incorporated in Hong Kong, and Shanghai Huiliu, established in the PRC, will enhance the group's "AI+OMO new consumption platform" strategy. As of June 30, 2025, the target group reported an audited net asset value of approximately RMB9,209,609 and cash equivalents of RMB1.71m. For the six months ended June 30, 2025, total revenue was RMB19.38m, with a net profit before taxation of RMB7.12m and after taxation of RMB6.05m.

The consideration for the 100% equity interest in Shanghai Huiliu is RMB460m, determined primarily using a P/E ratio as the valuation multiple. The adjusted P/E multiple of 34.35 was derived from an analysis of profitable comparable companies. A Discount for Lack of Marketability (DLOM) of 17.6% and a Control Premium of 23.9% were also applied in the valuation, leading to an estimated 100% equity interest value of RMB424,623,999 for the target company.

A performance guarantee is in place for 2025 and 2026, based on robust industry growth, technological advancements, and financial modeling. The guarantee will be measured on a cash basis. The share return and retention mechanism allows vendors to retain 30% of consideration shares, incentivizing ongoing commitment. Mr. Ma, responsible for the target company's daily operations, will provide the guarantee, with a provision for cash compensation if the target group records a cumulative loss during the profit guarantee period.