Author｜Ren Tianqin

Editor｜Chen Xiaoran

On September 14, Xiangshan Share (002870.SZ) announced its plan to acquire 100% of the equity in Zhejiang Wuluo Smart City Technology Co., Ltd. (referred to as Wuluo Intelligence) for 800 million yuan, entering the AI computing power equipment sector.

Under pressure from its main business of automotive components, Xiangshan Share is seeking a second growth curve through mergers and acquisitions, but challenges such as cross-border integration and industry competition lie ahead.

Deal Finalized | Cross-border Entry into Computing Power

On August 31, Xiangshan Share issued a suspension announcement, stating that it was planning to purchase 100% of the shares of Zhejiang Wuluo Smart City Technology Co., Ltd. by issuing shares and paying cash, while raising matching funds (matching funds). Trading will be suspended from the market opening on September 1.

On September 14, the restructuring plan was officially finalized. The total tentative consideration for the transaction is 800 million yuan, with an issue price of 35 yuan per share, along with matching funds (matching funds). The transaction is not expected to constitute a major asset restructuring, and trading will resume on September 15.

In terms of pricing mechanism, the transaction includes a buffer zone for fluctuations in the valuation. The announcement stated that as of the disclosure of the plan, the audit and valuation of the target assets had not been completed. If the final valuation does not fluctuate by more than ±5% from 800 million yuan, the transaction price will not be adjusted.

Performance commitments have also been locked in simultaneously with the pricing. The two parties to the transaction have agreed on performance commitments, with Wuluo Intelligence's cumulative non-recurring net profit from 2027 to 2029 expected to be no less than 400 million yuan.

After the acquisition, Xiangshan Share will add AI computing power equipment to its business portfolio, establishing a dual-core business model of 'automotive components + AI computing power'.

Wuluo Intelligence specializes in the R&D, production, and sales of AI computing power equipment, providing engineering solutions for computing power infrastructure to customers of intelligent computing centers. It is also the industry general agent for Moore Threads, a domestic GPU manufacturer.

By December 2025, Wuluo Intelligence's production base in Ningbo will officially commence operations, with a planned annual production capacity of 5,000 AI training and inference GPU servers, equivalent to 40,000 GPU cards. It possesses technical reserves in hardware adaptation for chassis, storage, and optical modules, as well as liquid cooling thermal management, covering computing power hardware, thermal management, and industry-specific intelligent applications.

From a business synergy perspective, Xiangshan Share's precision manufacturing, supply chain management, and quality control systems can empower Wuluo Intelligence in mass production delivery and cost control of servers, while also promoting the extension of computing power products to new energy vehicles, energy storage, and power distribution scenarios.

At the market level, this acquisition is also seen as a capital Layout (strategic Layout ) by a traditional manufacturing listed company to seize the wave of domestic computing power substitution.

Corporate Fundamentals | Main Business Under Pressure, Seeking Change

Xiangshan Share started its business with weighing equipment and entered the automotive components sector in 2020 through the acquisition of Joyson Electronics.

By the end of 2025, it will divest its weighing equipment business and fully focus on automotive components, primarily engaged in intelligent cockpit air management systems, luxury trim, and new energy charging and power distribution products, with long-term partnerships with luxury automakers such as BBA.

In the first half of 2026, Xiangshan Share achieved revenue of 2.402 billion yuan, but its net profit attributable to shareholders turned from profit to loss, recording a net loss of 12.299 million yuan, compared to a profit of 52.9784 million yuan in the same period last year.

The performance pressure mainly stems from multiple factors: weakening demand in the luxury passenger vehicle market, coupled with the impact of price wars in new energy vehicles, leading to a decline in revenue in the automotive components segment; exchange losses of 28 million yuan during the period and cost pressures at the manufacturing end further compressed profit margins.

The growth ceiling for the traditional automotive components business has become apparent, and the company urgently needs to explore new business growth points.

The acquisition target, Wuluo Intelligence, is a computing power integration vendor primarily engaged in server integration and GPU channel sales, rather than self-developed GPU chips.

From a industrial chain (industry chain) perspective, the core competitiveness of such computing power integration companies lies in a stable supply of GPU chips, server integration capabilities, downstream customer resources, and thermal management solutions.

Previously, Ruisheng Intelligent had strategically invested in Wuluo Intelligence. Now, with Xiangshan Share taking over, the change in capital ownership has also sparked market discussions on the target's valuation and business sustainability.

For Xiangshan Share, this acquisition represents a typical cross-border transformation. While the company possesses precision manufacturing capabilities, AI computing power servers represent an entirely new field, with significant differences in customer base, sales model, and technology iteration pace compared to the automotive components business.

After the merger, team integration, supply chain collaboration, and customer resource alignment will all require significant time to implement. If integration falls short of expectations, the synergistic effects of this acquisition will be greatly diminished.

According to Cailian Press StarMine data, from the beginning of 2026 to early June, at least 20 A-share listed companies in the PCB sector announced expansion plans, involving total investment of over 80 billion yuan. The new investments are primarily concentrated in high-end product areas such as high-multi-layer boards, HDI, carrier boards, and high-speed communications, indicating a significant increase in industry capital expenditures.

However, competitiveness in the high-end PCB sector is not solely dependent on expansion.

AI server PCBs have high requirements for line precision, impedance control, material performance, reliability, and mass production yield, while downstream large customers typically have stringent supplier certification systems.

The process from production line construction, product sampling, customer certification, to mass production often takes a long time.

Currently, leading companies such as WUS Printed Circuit and Victory Giant Technology have established certain first-mover advantages in the supply systems of some overseas computing power customers. In the high-end HDI field, Taiwanese and overseas leading manufacturers also possess strong technical and customer foundations.

Therefore, even if new entrants complete capacity construction, they still need to navigate multiple stages such as process maturity, yield improvement, and customer certification. As new industry capacity is gradually released, the medium- to long-term supply-demand balance may also be reshaped.

Sector Outlook | Opportunities and Risks Coexist

China's demand for AI computing power continues to expand, while the supply of overseas high-end chips is restricted, creating a window of opportunity for domestic GPU substitution. The continuous implementation of intelligent computing center construction is driving sustained growth in demand for AI servers and computing power infrastructure.

In the domestic computing power industry chain, the upstream GPU chip sector, midstream server integration, and downstream intelligent computing center construction are attracting a large number of companies to enter the field. Traditional manufacturing companies are leveraging their sheet metal, structural components, and thermal management manufacturing capabilities to enter the computing power server integration sector, becoming a common transformation path.

Amidst the sector's dividend (dividends), risks cannot be ignored.

The first risk is the supply of upstream chips. As a distributor for Moore Threads GPUs, Wuluo Intelligence's business is highly dependent on the supply capabilities, pricing strategies, and product iteration pace of upstream chip manufacturers.

In the first half of 2026, Moore Threads' direct sales revenue share jumped from 41.9% to 64.7%, while distribution revenue declined by 12.2% year-on-year, indicating a clear shift toward direct sales. The impact of this change on Wuluo Intelligence's procurement share and distribution qualifications remains to be seen.

The second risk is the pressure to meet performance commitments. The three-year cumulative non-recurring net profit target of 400 million yuan places high demands on Wuluo Intelligence's order acquisition capabilities.

The computing power industry is highly cyclical, and if downstream intelligent computing center capital expenditures contract and orders fall short of expectations, the performance commitments will be difficult to meet, exposing the listed company to goodwill impairment risks.

Additionally, cross-border management risks cannot be overlooked. Xiangshan Share's existing management team has deep expertise in automotive components, while the computing power industry features rapid technological iteration and entirely different customer structures and business models.

Customer certification, project delivery, and after-sales operations in the computing power business differ significantly from the long-term fixed point (designated) models in the automotive components sector, making cross-industry management challenges significant.

This 800 million yuan acquisition represents an important attempt by Xiangshan Share to bet on the domestic computing power sector amid pressure on its main business.

The domestic computing power market offers vast potential, but the sector is fiercely competitive, with complex interactions across the industry chain.

The merger is just the starting point; subsequent order execution, capacity release, and cross-business synergy will be key to determining the success of this investment.

Whether the capital story can translate into tangible revenue and profits will require continuous observation of subsequent financial reports and order execution.