Winnovation Culturaltainment Development Limited (originally known as Xinhua Tourism Development Co., Ltd., SZ000620, stock price: 1.98 CNY, market cap: 11.626 billion CNY) is accelerating its transformation towards the technology sector following a name change and a judicial transfer of shares from its former major shareholder.
On the evening of October 21, the company announced that it has signed a Letter of Intent for Equity Acquisition with Guangdong Changxing Information Management Consulting Co., Ltd. and individual Zhang Zhiqiang, aiming to acquire 81.8091% of the shares of Guangdong Changxing Semiconductor Technology Co., Ltd. in cash.
If the transaction is completed, Winnovation is expected to gain control of this national-level specialized and innovative "little giant" enterprise. This significant move comes amidst a series of important changes within the company and signifies a crucial step in its "Culturaltainment + Technology" strategic positioning.
The announcement elaborated that in June of this year, Winnovation changed its name from "Xinhua Tourism Development Co., Ltd." to its current name. Now, amidst the backdrop of departing from its former principal and facing performance pressures, the swift move into the semiconductor sector indicates the company's determination and urgency in its strategic shift.
According to the announcement, the transaction aligns with Winnovation's business development needs and its strategic layout of "Culturaltainment + Technology." The company views this acquisition as a combination of upgrading its traditional business and investing in emerging industries, enhancing its comprehensive strength and overall competitiveness while laying a foundation for future expansion in the high-tech field, ultimately boosting its core competitiveness and supporting sustainable development.
In fact, Winnovation clearly stated in its 2025 semi-annual report that it plans to build a "real estate-cultural technology collaborative ecosystem" through a strategy of "three core drives and three-stage leaps," aiming to transition into a national strategic innovation platform operator.
The report also mentions that the company established Shenzhen Winnovation Intelligence Co., Ltd. in April this year, which is currently in the business exploration stage. The focus will be on smart tourist attractions, smart property management, business analysis, and building an AI application platform, while actively exploring and investing in enterprises with capabilities for technological innovation and industrial upgrades, drawing from the recovering demand in terminal markets such as automotive and consumer electronics.
Prior to planning the acquisition of the semiconductor business, Winnovation underwent a series of significant transformations, particularly highlighted by a notable decline in the shareholding of its former major shareholder, Xinhua Holdings Co., Ltd. According to the announcement dated September 10, 2025, the company has received a notification from Xinhua Holdings regarding the execution progress of its restructuring plan, indicating that a portion of Xinhua Holdings' shares has been judicially transferred.
Specifically, the announcement revealed that the transfer was executed in accordance with a court ruling concerning the restructuring plan of Xinhua Holdings and five other companies. As per this plan, 1.175 billion shares owned by Xinhua Holdings (representing 20.01% of the total shares) will be used for debt repayment via equity to creditors.
The recent transfer involved 203 million shares (3.46% of the company's total shares) held by Xinhua Holdings, some of which were shifted to a special account for the disposal of bankrupt enterprise properties and others to various creditor securities accounts. Following these changes, Xinhua Holdings' shareholdings in the company decreased to 219 million shares, representing 3.72%, thus ceasing to be a shareholder with more than 5% stake in the company.
Simultaneously, Winnovation's restructuring plan is also underway. The company had previously executed capital reserve transfers, increasing its total share capital to approximately 5.872 billion shares. These newly issued shares were not allocated to original shareholders, with around 1.727 billion shares designated for new investors and approximately 2.248 billion shares allocated for debt repayment.
This adjustment in shareholding structure and the progression of the restructuring plan have posed short-term challenges to Winnovation's operational results. According to the 2025 semi-annual report, the company reported a revenue of 772 million CNY, exhibiting a drastic decline of 50.97% compared to 1.575 billion CNY in the previous year. The net profit attributable to shareholders showed a loss of 161 million CNY, a stark contrast to a profit of 48.51 million CNY in the same period last year— a drop of 432.51%.
In response to the underperformance, Winnovation attributed the revenue decline primarily to reduced income from property projects in the current period. Data indicates that the revenue from residential property sales dropped significantly to 213 million CNY, a decline of 76.84% year-on-year, while revenue from the cultural tourism sector slightly decreased by 1.98% to 348 million CNY.
Despite facing performance pressures, Winnovation expressed its commitment in the semi-annual report to transform into an innovative platform operator through the "three core drives and three-stage leaps" strategy.
In the context of the completed share transfer and short-term performance challenges, the planned acquisition of Changxing Semiconductor may be a pivotal move for Winnovation in advancing its strategic transformation, optimizing its asset structure, and seeking new growth momentum.