Restructuring relay! Can Gaoling Information's plan to acquire Kairui Xingtong turn around its declining performance?

Daily Economic News Reporter | Chen Pengli Daily Economic News Editor | Wei Weny

Less than two months after announcing the termination of the restructuring deal with Dongzhu Ecology (SH603359, stock price 6.54 yuan, market value 2.917 billion yuan), Kairui Xing Tong Information Technology (Nanjing) Co., Ltd. (hereinafter referred to as “Kairui Xing Tong”), which is engaged in satellite communications, quickly found a new potential buyer.

On the evening of March 16, Gaoling Information (SH688175, stock price 35.45 yuan, market value 4.584 billion yuan) announced that the company is planning to acquire control of Kairui Xing Tong through issuing shares and paying cash, while also raising supporting funds. Based on preliminary estimates, this transaction is expected to constitute a major asset restructuring, and Gaoling Information’s stock will be suspended from trading starting March 17.

The Daily Economic News reporter (hereinafter “D.E.N. reporter”) noted that Gaoling Information, which plans to “take over” Kairui Xing Tong, is under performance pressure. According to its recent 2025 performance forecast, the company has reported losses for two consecutive years, with a net profit attributable to shareholders of -40.64 million yuan in 2025. In contrast, Kairui Xing Tong achieved nearly 8 million yuan in net profit in the first half of 2025.

According to Gaoling Information’s announcement, the company is planning to acquire control of Kairui Xing Tong and intends to suspend trading from the market opening on March 17, with the suspension not expected to exceed 10 trading days.

The announcement shows that the initial transaction counterparties include shareholders such as Shi Yan and Li Jianghua. Gaoling Information states that Shi Yan and Li Jianghua, as the actual controllers of Kairui Xing Tong, will do their best to promote this transaction to achieve control over the target company. The scope of the transaction counterparties has not yet been finalized; the final counterparties will be disclosed in subsequent announcements.

Image source: Gaoling Information announcement

The target of this transaction—Kairui Xing Tong—is not unfamiliar to the capital market. Not long ago, it was the “candidate” of another listed company, Dongzhu Ecology. On August 27, 2025, Dongzhu Ecology announced plans to acquire Kairui Xing Tong’s controlling stake through issuing shares and paying cash, leading to a trading halt. Later, Dongzhu Ecology revealed it intended to acquire 89.49% of Kairui Xing Tong’s shares.

However, this highly anticipated restructuring ultimately failed after several months. On January 31, 2026, Dongzhu Ecology officially announced the termination of the transaction. The reason given was that “due to changes in market conditions and other factors, the company and the transaction counterparty could not reach a preliminary consensus on valuation and other commercial terms.” From the announcement of the restructuring plan to its termination, about five months elapsed.

Image source: Dongzhu Ecology announcement

Now, less than two months after the previous restructuring “fell through,” Kairui Xing Tong has quickly found a new partner.

However, the D.E.N. reporter noticed that Gaoling Information’s recent 2025 performance forecast shows that the company achieved operating revenue of about 230 million yuan in 2025, a year-on-year decrease of 13.87%; net profit attributable to shareholders was about -40.64 million yuan, compared to about -52.28 million yuan in the same period of 2024. This indicates the company has reported losses for two consecutive years. Gaoling Information attributes the 2025 losses to a decline in current operating income and gross profit margin compared to 2024, with its main business profits unable to cover operating costs.

Image source: Gaoling Information 2025 Performance Forecast

So, what kind of company is Kairui Xing Tong, that it can attract successive offers from two listed companies?

Public information shows that Kairui Xing Tong was founded in 2011 and is a high-tech enterprise mainly engaged in the research, development, and production of satellite communication technology and systems. According to its official website, the company has participated in several national satellite communication projects, including Shenzhou spacecraft, lunar modules, and low-orbit small satellite constellations. The company has developed mature products and technical advantages in satellite communication technology, satellite communication systems, IP acceleration, low-power small integrated terminals, and satellite network management systems.

Financial data indicates that Kairui Xing Tong has certain profitability. As previously disclosed by Dongzhu Ecology, as of June 30, 2025, Kairui Xing Tong’s unaudited total assets were 448 million yuan, with total equity of 258 million yuan; in the first half of 2025, it achieved operating revenue of 110 million yuan and a net profit of 7.8164 million yuan.

The D.E.N. reporter also noted that Gaoling Information’s main business involves military telecommunications equipment and environmental IoT applications, serving defense and government-enterprise clients. Its business scope overlaps somewhat with Kairui Xing Tong. For Gaoling Information, which has been experiencing continuous losses, successfully acquiring a profitable company like Kairui Xing Tong could help improve its operational situation and expand new growth points.

In fact, Gaoling Information also experienced a failed asset restructuring last year. Its plan to acquire 100% of Shanghai Xinno Communication Technology Co., Ltd. was terminated in June 2025.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.

Cover image source: D.E.N. Media Library