On November 18, 2025, HUITONGDA NET (09878) announced that it has entered into a share purchase agreement with Cognitive Edge, a technology company specializing in intelligent solutions for e-commerce and retail businesses. HUITONGDA NET intends to acquire a 57% stake in Cognitive Edge for RMB 456 million. Upon completion of the transaction, Cognitive Edge will become a subsidiary of HUITONGDA NET, with its financial performance consolidated into the latter’s statements.
HUITONGDA NET is a leading industrial internet company in China, primarily empowering rural mom-and-pop stores with supply chain capabilities and digital technologies. It currently operates across 21 provinces, covering 26,000 townships and serving over 251,000 member stores and more than 1,000 upstream brand factories. Cognitive Edge, the acquisition target, specializes in AI-driven solutions for e-commerce and retail, offering full-stack services spanning AI products and data intelligence solutions. It serves over 16,000 stores and manages annual sales exceeding RMB 140 billion.
Market analysts suggest this acquisition underscores HUITONGDA NET’s strategic push to deepen end-to-end industrial digitalization while accelerating growth through an "industry + capital" model. Key synergies include:
1. **Enhanced Capabilities**: The merger combines HUITONGDA NET’s retail and upstream brand expertise with Cognitive Edge’s technological strengths, amplifying the "5+ Empowerment" effect for member stores and industrial clients: - **+Technology**: Cognitive Edge’s BI systems and AI agents will integrate with HUITONGDA NET’s "Qiancheng Cloud AI Model" to deliver personalized Agent applications, boosting operational efficiency. - **+Data**: Cognitive Edge’s vast e-commerce data will empower HUITONGDA NET’s members and industrial clients in omnichannel decision-making. - **+Training**: Cognitive Edge’s 150+ e-commerce operation experts will provide specialized, scenario-based, and intelligent solutions. - **+Supply Chain**: Cognitive Edge’s partnerships with leading brands will complement HUITONGDA NET’s existing supply chain, enriching product offerings for lower-tier markets. - **+Marketing**: Cognitive Edge’s marketing expertise and AIGC tools will elevate online marketing efficiency for HUITONGDA NET’s ecosystem.
2. **AI Leadership**: The collaboration aims to develop cutting-edge AI products and data intelligence solutions, reinforcing competitive barriers in the "BI+AI" space. This aligns with HUITONGDA NET’s long-term "AI+" strategy, which has seen milestones like integrating mainstream AI models in early 2025, securing regulatory approval for its proprietary AI model in May, and partnering with Alibaba Cloud in August to launch retail-focused Agent applications.
3. **Financial and Capitalization Upside**: The acquisition is expected to directly bolster HUITONGDA NET’s financial performance. Cognitive Edge has committed to net profits of at least RMB 85 million, RMB 100 million, and RMB 115 million in 2026–2028, respectively. Its revenue will also enhance HUITONGDA NET’s service income, improving gross margins and valuation prospects.
Industry observers highlight that Cognitive Edge, as a "digital infrastructure provider" driving retail efficiency, holds significant long-term value and capitalization potential—especially amid China’s 15th Five-Year Plan emphasis on industrial upgrades and domestic economic circulation. This positions HUITONGDA NET for broader capital market opportunities.