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

Wu Qiunong, Deputy General Manager and Secretary of the Board of Directors of HITE

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

With the acceleration of the integration of “automation and informatization”, connection, integration and openness are 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 great significance for promoting the digital, intelligent and green transformation of traditional enterprises.

Xingzhida as the object of this acquisition focuses on ICORS, the core element of control and execution on the production site, and provides comprehensive products and technical services 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 and services in the sectors of industrial electrical automation, informatization and advanced special equipment for new energy. The two parties form a remarkable complementary relationship in the fields of industrial automation and informatization. According to Wu, the complementary relationships between HITE and Xingzhida are mainly summarized in three aspects:

First, it is the complementarity of industries. The downstream areas covered by Xingzhida include manufacturing industries such as new energy vehicles, photovoltaics, consumer electronics, semiconductors and medical devices. And HITE focuses on infrastructure fields including cities, rail transit, railways, highways, metallurgy, coal mines, electric power, etc.

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

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

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