Xinhua Media hit the daily limit up again on September 30, recording its seventh consecutive limit-up. On the evening of September 29, Xinhua Media issued an announcement on abnormal stock trading fluctuations and a risk warning, stating that since resuming trading, its cumulative gain had reached 77.21%, with relatively large short-term volatility. As of September 28, the latest rolling price-to-earnings ratio for the company's industry, news and publishing, was only 17.47, while the company's latest rolling price-to-earnings ratio was 209.34, significantly higher than the industry average, and there may be irrational speculation. Previously, on September 19, Xinhua Media issued a preliminary plan announcement for a share issuance to purchase assets and a related-party transaction, proposing to buy 100% equity in Shanghai Interface Cailianshe Technology from 13 counterparties including Shanghai United Media Group Culture New Media Investment Management. The transaction is expected to constitute a major asset restructuring. According to the announcement on the evening of September 29, as of September 29, the audit and evaluation work involved in this major asset restructuring had not yet been completed, and the necessary internal decision-making procedures still needed to be fulfilled. It can only be formally implemented after approval by the competent regulatory authorities, and there is uncertainty as to whether the transaction can obtain approval from the relevant authorities and the timing of final approval.
Shanghai Xinhua Media Co LtdXinhua Media plans a major asset restructuring to acquire 100% of Shanghai Interface Cailianshe Technology, but audit/valuation is incomplete and regulatory approval is uncertain.
