Due to Expired Application File Data, Xiangcai Share Merger with Dazhi Cancelled

China Securities Journal, March 16 — (Zhou Yihang) On March 15, Xiangcai Shares and Great Wisdom announced that the transaction involving Xiangcai Shares exchanging shares to acquire and merge with Great Wisdom, along with fundraising for supporting funds, has been suspended due to expired application document data. The Shanghai Stock Exchange notified the suspension of review on March 14.

In the announcement, the two companies stated that the valuation report submitted with the application is valid until March 14, 2026. As of the disclosure date, the valuation data has expired. Additionally, the most recent audited financial statements referenced in this transaction are as of June 30, 2025. According to relevant regulations, this financial data will expire on March 31, 2026. Both sets of data need to be updated and resubmitted.

Xiangcai Shares and Great Wisdom stated that the suspension of review will not have a significant adverse impact on the transaction, and the companies are operating normally. They are actively working on updating valuation data, financial data, and application documents. Once completed, they will promptly submit the updated application materials to the Shanghai Stock Exchange and request the review to be resumed.

The reorganization between Xiangcai Shares and Great Wisdom has been nearly a year in the making. On March 28, 2025, the two companies announced plans for Xiangcai Shares to acquire Great Wisdom through a share swap, issuing A-shares to all A-share shareholders of Great Wisdom, and to raise supporting funds through issuing A-shares.

After the transaction, Great Wisdom will delist and cancel its corporate registration, while Xiangcai Shares, as the surviving company, will inherit all of Great Wisdom’s assets, liabilities, business, personnel, contracts, licenses, and other rights and obligations.

Regarding the reasons for this restructuring, Professor Tian Lihui of Nankai University’s Finance Department previously told China Securities Journal that the merger is based on four factors: business complementarity, capital strategy, industry competition pressure, and policy support. The core goal is to build a “Finance + Technology” ecosystem loop, creating synergy effects post-merger.

Tian Lihui believes that Xiangcai Shares mainly focuses on traditional brokerage, investment banking, and asset management, but faces increasing industry competition and declining commission rates, requiring technological empowerment to improve efficiency. Great Wisdom, as a financial information service provider, has massive user data, a technological platform, and internet traffic access but lacks financial licenses and physical business support. After merging, Xiangcai Shares can leverage Great Wisdom’s technological capabilities and C-end user resources to promote digital transformation (such as intelligent investment advisory and targeted marketing). Meanwhile, Great Wisdom can utilize Xiangcai’s financial licenses and business qualifications to monetize data and technology into actual revenue, forming a “traffic + license” closed loop.

(China Securities Journal APP)