On November 18, 2025, HUITONGDA NET (09878) announced the signing of a share acquisition agreement with Cognitive Edge, a technology company specializing in e-commerce and retail intelligence. Post-transaction, Cognitive Edge will become a subsidiary of HUITONGDA, with its financials consolidated into the listed entity. This acquisition is seen as a strategic move to bolster HUITONGDA's "industrial empowerment" capabilities, merging its "5+ Empowerment" model for lower-tier markets with Cognitive Edge's expertise in "BI+AI" to create a synergistic 1+1>2 effect.
Key Highlights of the Acquisition: 1. **"5+ Empowerment" Meets "BI+AI"**: HUITONGDA’s proprietary "5+ Empowerment" framework—covering technology, data, training, merchandise, and marketing—will integrate Cognitive Edge’s AI and BI solutions. This upgrade shifts from basic digitization to full-stack AI-driven intelligence: - **Technology**: Cognitive Edge’s AI agents and BI systems will merge with HUITONGDA’s "Qiancheng Cloud AI Model" (approved by China’s Cyberspace Administration in May 2025), enhancing inventory, pricing, and product selection for 251,000 member stores. - **Data**: Cognitive Edge’s management of 16,000+ e-commerce stores (with ¥140B annual GMV) will combine with HUITONGDA’s offline data, creating an omnichannel data platform for precise decision-making. - **Training**: Cognitive Edge’s 150+ e-commerce experts will train rural store owners and brands in digital operations. - **Merchandise**: Shared supply chains will expand product offerings in lower-tier markets. - **Marketing**: AI-driven content tools will boost cross-platform sales efficiency.
2. **Competitive Edge**: The deal strengthens HUITONGDA’s "retail industrial internet + AI" leadership, blending Cognitive Edge’s BI+AI prowess with HUITONGDA’s Alibaba Cloud partnership (since August 2025).
3. **Financial Impact**: The ¥456M acquisition of 57% stake in Cognitive Edge includes a three-year profit guarantee (¥85M, ¥100M, and ¥115M), promising revenue diversification and margin expansion.
4. **Strategic Execution**: From AI model development to Alibaba Cloud collaboration and now this acquisition, HUITONGDA demonstrates consistent execution toward full-stack retail empowerment.
With its valuation at historic lows, HUITONGDA’s integration of Cognitive Edge positions it for profitability growth and long-term value creation in China’s domestic consumption-driven economy.