Zhongxiruan Technology's strategic integration of intellectual property technology business yields results; dual-wheel layout broadens growth space for the IP industry.

Zhongxiruan Technology's strategic integration of intellectual property technology business yields results; dual-wheel layout broadens growth space for IP industry

Currently, digital technologies such as AI large models and blockchain are comprehensively reconstructing the entire intellectual property industry chain, fundamentally shifting the industry's development logic. In the past, the industry competed on document handling efficiency; now, digital intelligence tools, full-chain operations, and diversified service capabilities have become the core barriers. In the new era, whoever understands this game of chess has the potential to become the absolute leader in the high-growth track of intellectual property within China's emerging technology market.

On June 17th, Zhongxiruan Technology (01020.HK), a rare intellectual property technology target in the Hong Kong stock market, announced the completion of the allocation of performance consideration shares for Newsbaba LTD. The achievement of this performance target not only directly demonstrates the company's M&A integration capabilities but also fully validates the long-term dual-line layout logic of "technology empowerment + capital synergy."

Target Exceeds Profit Target, Highlighting Steady M&A Approach

Reviewing this acquisition, the company disclosed the acquisition plan in February 2025 and completed the transfer of 100% equity of Newsbaba LTD in October of the same year. The initial basic payment was completed by issuing 1.205 billion consideration shares at HKD 0.1 per share. According to the acquisition agreement, the target company's post-tax net profit threshold for the 2025 fiscal year was RMB 15 million. Verified by a third-party auditor, Newsbaba's full-year comprehensive after-tax profit reached RMB 16.4314 million, exceeding the performance target and triggering the issuance of 400 million floating performance consideration shares. The company completed the share allocation on June 17th.

From a business fit perspective, Newsbaba, relying on its subsidiary Beijing Newsbaba which holds formal patent agency qualifications, focuses on one-stop agency services for patents, trademarks, and copyrights, operating with an online platform and offline outlets model. Achieving the performance commitment within a short year of acquisition sufficiently proves the smooth integration of Zhongxiruan Technology's intellectual property business, with efficient traffic diversion achieved between online traffic and offline agency teams.

It is worth mentioning that this transaction adopted a "basic shares + performance floating consideration" design, where new shares are only issued upon the target achieving its profit goal, effectively avoiding goodwill risks from blind acquisitions. After the share allocation, the company's largest controlling shareholder, CIPRUN LIMITED, increased its shareholding ratio to 27.66%. The concentration of shareholding among core management has increased, deeply aligning the interests of the management layer with the long-term development of the listed company, laying a governance foundation for the continued integration of industrial resources.

This acquisition is not merely about scale expansion; it also fills the company's offline licensed agency capacity. The carrying capacity for technological innovation services targeting small and medium-sized tech enterprises has been significantly enhanced, optimizing the overall profit structure.

AI Digitalization Strengthens Moat; Full-Link Ecosystem Opens Long-Term Growth Space

Acquisitions are only a means of external expansion; digitalization and AI innovation are the core barriers for Zhongxiruan Technology to establish itself in the industry.

The company entered the intellectual property track in 2002, initially creating an "Internet + Intellectual Property" O2O service model. After 25 years of development, it has built a global service network, a professional service team of thousands, and is equipped with the industry's unique Intellectual Property Technology Museum and a senior expert think tank. In collaboration with over 170 professional institutions, it has jointly built a digital service platform, accumulating a vast amount of government and enterprise client resources.

Currently, the entire intellectual property industry is at an inflection point of intelligent transformation. Simple document agency can no longer meet market demand; AI and blockchain have become key for leading companies to widen the gap. Zhongxiruan Technology has established an ABCD digital technology system, leveraging vertical large models in intellectual property to launch intelligent patent drafting and novelty intelligent analysis tools. It relies on blockchain for instant creative notarization and full-process traceability, addressing industry pain points such as difficulty in rights confirmation and long evidence collection cycles.

Relying on this complete digital technology foundation, the company has connected the four major sectors of IP rights confirmation, trading, management, and finance, forming a complete closed loop from innovation protection to intangible asset financing and realization. Coupled with the new agency channels added through this acquisition, the company's client coverage has further broadened, extending from internet companies to manufacturing, biopharmaceuticals, and other physical tech innovation entities. The client structure is more balanced, and high-value business increments are sustainable.

Overall, the successful fulfillment of Newsbaba's performance commitment is a key solid proof of Zhongxiruan Technology's strategic integration of its intellectual property technology business, and it also presents a feasible integration answer to the capital market. As a unique listed intellectual property technology target in the Hong Kong stock market, Zhongxiruan Technology's development path of "technology empowerment + capital synergy" has been verified through actual performance. Relying on a complete full-chain service ecosystem, the company is expected to continuously share the long-term development dividends of the trillion-yuan track. Its growth logic is clear and worthy of investors' continuous tracking and observation.