(Yicai) Sept. 15 -- Shares of Senssun Weighing Apparatus Group plunged by the exchange-imposed daily trading limit after the Chinese auto parts supplier said it plans to acquire an artificial intelligence computing power company at a nine-fold premium over its market value.

Senssun [SHE: 002870] closed 10 percent down at CNY47.70 (USD7.11) in Shenzhen today. The stock had suspended trading since Sept. 1, after it rose 6.2 percent on the previous day.

Senssun will buy 100 percent of Wuluo Wisdom for about CNY800 million (USD119.2 million), the company announced yesterday, adding that it plans to pay for the acquisition with cash and the proceeds of a share placement.

Founded in Ningbo in 2021, Wuluo Wisdom entered the AI computing power equipment business in 2024. In the first half of this year, it reported a net profit of CNY28.1 million (USD4.2 million) and revenue of CNY304.7 million. As of June 30, its net assets totaled CNY86.8 million, meaning that the transaction price proposed by Senssun represents a premium of about 822 percent.

Senssun was founded in 1975 as a manufacturer of household weighing devices, such as bathroom and kitchen scales. In 2020, it acquired Ningbo Joyson Quin Automotive System, a subsidiary of Joyson Electronics that manufactures and distributes auto parts, and then shifted its focus to the smart cockpit and components businesses.

Afterward, Joyson Electronics became Senssun’s largest shareholder with a nearly 40 percent stake, after a series of share acquisitions. Joyson Electronics’ Chairman Wang Jianfeng is Senssun’s actual controller.

Senssun’s auto parts business has experienced a slowdown, prompting the company to plan a strategic foray into the AI computing sector.

Senssun aims to establish a dual-driven business model of ‘auto components + AI computing’ and promote the application of Wuluo’s products and technologies in the new energy vehicle, charging infrastructure, and energy storage industries, the firm explained yesterday.

In the first half, Senssun's net profit widened 4.4 percent to CNY739 million from a year earlier, while revenue declined 7.4 percent to CNY28.1 billion (USD4.2 billion), according to the company's latest financial report.

Editor: Futura Costaglione