Xiangshan Shares Plans 800 Million CNY Acquisition of Wuluo Smart City

Xiangshan Shares has disclosed a restructuring plan to acquire 100 percent of the equity of Zhejiang Wuluo Smart City Technology, also known as Wuluo Smart City. The provisional transaction price is 800 million CNY.

The company intends to complete this cross sector acquisition using a combination of issuing shares and paying cash. Cash payments will account for 51 percent of the total price, while the remaining 49 percent will be paid by issuing shares of the listed company at a price of 35 CNY per share.

Under the agreement, the parties have set a performance commitment for the years 2027, 2028, and 2029. The cumulative non recurring net profit for the target company during this period is promised to be no less than 400 million CNY. This target implies an average annual non recurring net profit of approximately 133 million CNY. The performance commitment notably skips the year 2026.

Wuluo Smart City entered the computing power business in 2024 and became the fifth largest new customer of Muxi Shares. Initially, the company operated as a trader, purchasing hardware for secondary debugging and adaptation before selling it. It transitioned to a self research and manufacturing model in December 2025 following the completion of its intelligent manufacturing base in Ningbo.

Financial data for Wuluo Smart City shows revenue of 2.94 million CNY in 2024, during which it recorded a loss. In 2025, revenue rose to 36.66 million CNY with a net profit of 19.07 million CNY. For the first half of 2026, revenue reached 305 million CNY with a net profit of 28.10 million CNY.

Xiangshan Shares seeks to establish a dual main business structure combining automotive parts and artificial intelligence computing power equipment. The company believes its precision manufacturing and thermal management capabilities can support the production of servers at Wuluo Smart City. Conversely, liquid cooling and computing power technologies from Wuluo Smart City may be applied to vehicle computing and energy storage. However, the company warned that these sectors use different customer certifications and supply chains, meaning synergy is a long term vision rather than a short term gain.

This acquisition follows a period of financial pressure for Xiangshan Shares. In the first half of 2026, the company reported revenue of 2.402 billion CNY, a decrease of 18.23 percent year on year, and a net loss of 12.299 million CNY. This decline was attributed to a downturn in the global luxury car market, which affected its subsidiary Junsheng Qunying, and exchange losses of approximately 28 million CNY due to currency fluctuations. Additionally, the company disposed of its weighing instrument business at the end of 2025, removing a stable source of profit.

Following the announcement, Xiangshan Shares saw its stock price fall to the limit down close of 47.70 CNY on September 15. This followed a cumulative increase of 35.69 percent in the 20 trading days prior to the suspension for restructuring.