Huaruan Technology Expects Consecutive Five-Year Losses; Can External M&A Help Achieve Profitability?

How AI · Ryan Optoelectronics’ Photonic Technology Can Help Huasoft Technology Transform Its Business

    "Electric Eel Finance" Electric Eel Account / Article

    Huasoft Technology is struggling in a continuous loss spiral, trying to cross the river with cross-industry mergers and acquisitions to reach profitability. Behind this self-rescue transformation are the dual challenges of intensifying industry competition and a lack of innovation.

    On March 6, Huasoft Technology announced that it plans to acquire 67.411% of Shandong Ryan Optoelectronics Technology Co., Ltd. (hereinafter referred to as Ryan Optoelectronics or the target company) for 324 million RMB. If the transaction is successfully completed, Ryan Optoelectronics will become a controlled subsidiary of Huasoft and will be included in the company's consolidated financial statements.

    From 2019 to 2024, Huasoft Technology only achieved profitability in 2020. From 2021 to 2024, the company's operating revenues were 3.942 billion, 2.697 billion, 551 million, and 515 million RMB respectively; net profits attributable to shareholders were losses of 227 million, 185 million, 176 million, and 288 million RMB; and non-recurring net profits were losses of 240 million, 400 million, 464 million, and 275 million RMB.

    Huasoft Technology's 2025 performance forecast shows an expected net loss attributable to shareholders of 260 million to 350 million RMB, and a non-recurring net loss of 261 million to 351 million RMB.

    The announcement states that Ryan Optoelectronics was established in July 2004 and was listed on the New Third Board. To facilitate this acquisition, the company was delisted on February 12, 2026. Ryan Optoelectronics is a manufacturing enterprise focused on the research, production, sales, and technical services of safety light curtains, measurement light curtains, detection light curtains, and safety control products, providing efficient and reliable safety protection products and solutions for machinery, automotive manufacturing, electronics, and automation manufacturing companies.

    From 2022 to 2024, the target company's operating revenues were 130 million, 146 million, and 153 million RMB; net profits attributable to shareholders were 36.404 million, 39.005 million, and 35.867 million RMB.

    In the first three quarters of 2025, Ryan Optoelectronics achieved operating revenue of 129.85 million RMB and net profit attributable to shareholders of 28.69 million RMB.

    "Electric Eel Finance" will continue to monitor the subsequent developments.