On September 28, 2025, Emdao Information (001314.SZ) announced plans to acquire a controlling stake in Shenzhen Chengcheng Information Co., Ltd. (Chengcheng Information) through a combination of share issuance and cash payment, and simultaneously raise matching funds. This transaction, which is being conducted concurrently with the acquisition of a controlling stake in Langguo Technology, is expected to constitute a major asset reorganization and related-party transaction, but will not result in a change in the company’s controlling shareholder. Trading in the stock has been suspended since September 29th, and the suspension is expected to last no longer than 10 trading days. Against the backdrop of the consumer electronics industry’s accelerated transformation toward a “hardware + software + services” model, Emdao Information’s expansion is undoubtedly a key move in deepening its AIoT strategy.
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Why Chengcheng Information?
Founded in 2005, Chengcheng Information is a veteran player in the IoT sector with 20 years of experience. With registered capital of 59.5237 million yuan, it focuses on the research and development and industry applications of core technologies such as RFID (radio frequency identification) and biometrics, primarily supplying data collection equipment and solutions. Its business scope encompasses the technical development, production, and sales of electronic products and computer software, as well as information system integration services. Its products and solutions have penetrated key industries such as logistics, transportation, healthcare, finance, and retail, with customers in over 150 countries and regions worldwide.
Notably, Chengcheng Information once had the potential to pursue an independent listing. In June 2022, the company completed its listing guidance filing with the Shenzhen Securities Regulatory Bureau, with CICC acting as advisor until March 2025. This background indirectly demonstrates the company’s business compliance and asset quality. However, its failure to achieve an independent listing also provided an opportunity for Yidao Information’s acquisition. In terms of technical reserves and industry implementation capabilities, Chengcheng Information’s accumulated experience in B-side customer service and multi-scenario solutions complements Emdao Information’s existing business.
Addressing B-side shortcomings and improving the AIoT ecosystem
As a smart electronic product and solution provider scheduled for IPO in 2023, Emdao Information’s primary business is smart hardware such as laptops and tablets (revenue accounted for 70.99% in the first half of 2025). While its XR and AIoT businesses are forward-looking, they only account for 12.14% and are still in their early stages of development. The acquisition of Chengcheng Information is a precise strategy to overcome bottlenecks in its business structure and strengthen its AIoT competitiveness.
From an industry chain perspective, Emdao Information’s core strength lies in hardware R&D, manufacturing, and product definition capabilities. Chengcheng Information’s accumulated expertise in data collection terminals and information system integration can form a complete closed loop of “hardware carrier + data perception + system implementation” with Chengcheng Information. For example, in smart healthcare scenarios, the combined technologies of the two companies can enable real-time capture and intelligent analysis of medical device data. This synergy not only enhances product value-added but also strengthens its ability to provide in-depth services to B-side customers, addressing the shortcomings of Yidao Information’s previous presence in the B-side market.
This acquisition is not an isolated move, but rather a systematic strategy for Yidao Information to respond to market changes. From an industry perspective, the A-share market merger and acquisition trend will continue to heat up in 2025. It has become a trend for listed companies to achieve specialized development through industrial integration, and transaction structures that combine share issuance with cash payment and accompanying fundraising have become the mainstream model. Yidao Information’s simultaneous acquisitions of Langguo Technology and Chengcheng Information are a proactive move to adapt to the trend of industry consolidation and accelerate business development through external expansion.
From its own development needs, Yidao Information is facing a critical period of transition from “platform dependence” to “self-operation.” Previously, the company’s profit structure was significantly influenced by its hardware OEM business. With the acquisition of Chengcheng Information, it can leverage the target company’s global customer network in over 150 countries and regions to expand its market share. It can also enhance customer loyalty through system integration services and optimize its profit structure. Furthermore, Chengcheng Information’s extensive experience in delivering projects for government and enterprise clients will help Emdao Information better respond to B-side client migration trends and consolidate its position in the industry.
Multiple uncertainties remain to be resolved.
While the transaction’s prospects are promising, the announcement clearly outlines multiple risks. Currently, the parties to the transaction have only signed a letter of intent and have not yet reached a formal transaction agreement. Core terms such as target valuation and performance commitments are still under negotiation and verification, and the final pricing will be determined through negotiation based on the results of the valuation agency. Historical data shows that the success rate of mergers and acquisitions in A-shares is approximately 70%, and the integration results vary. If subsequent issues arise in business synergy and cultural integration, the transaction value may fall short of expectations.
In the context of the deep integration of AIoT and consumer electronics, Emdao Information’s proposed acquisition of Chengcheng Information’s controlling stake is both a foundational project to address capability shortcomings and a critical leap forward in strategic transformation. If the transaction goes smoothly, the company will establish a complete capability chain encompassing “hardware manufacturing + interactive control + system integration,” placing it in a stronger position in the smart terminal market. However, from the letter of intent to final implementation, it still needs to overcome multiple challenges such as valuation negotiations, regulatory approval, and business integration. Whether this “experiment” of industry integration will be successful will have to wait for the disclosure of the plan after 10 trading days to provide more answers.
