FLYING TECHNOLOGY CO., LTD: Financial Overview and Market Movements

FLYING TECHNOLOGY CO., LTD, a company operating within the Machinery sector under the Industrials sector, is listed on the Shanghai Stock Exchange. As of July 29, 2025, the company’s close price was 8.6 CNY. The company’s market capitalization stands at 1,980,000,000 CNY, with a 52-week high of 10.33 CNY on December 5, 2024, and a 52-week low of 6 CNY on April 8, 2025. The price-to-earnings ratio is notably high at 169.25.

Recent Market Activity in the Military Informationization Sector

On August 1, 2025, the military informationization sector experienced a short-term surge. According to reports from stock.eastmoney.com, companies such as Zhanpeng Technology, Guanxiang Technology, Huaru Technology, China Hai’an, Hangtian Hongtu, and Mengsheng Electronics saw significant increases in their stock prices. Zhanpeng Technology, in particular, reached its daily price limit, indicating strong investor interest in this sector.

A-Share Company Takeovers on the Rise

In recent months, there has been a notable increase in the number of A-share companies undergoing takeovers. From June to July 2025, 36 companies announced takeovers, with 31 being privately-owned enterprises, accounting for 86% of the total. This trend reflects the challenges faced by many private enterprises, including stagnant revenue growth and shrinking core businesses, amidst increasing competition and rising costs.

The trend is partly driven by generational transitions, with many founders over 60 years old seeking to pass on their businesses. For instance, the founder of Hailun Piano, Chen Hailun, aged 70, is planning to transfer control of the company due to declining market conditions and financial performance.

Private Equity’s Role in Company Takeovers

A distinctive feature of recent takeovers is the involvement of private equity (PE) firms rather than traditional industry giants. PE firms, with substantial financial resources and industry expertise, are increasingly acquiring A-share companies. This shift is facilitated by regulatory changes that have relaxed restrictions on PE firms acquiring control of listed companies, as outlined in the “Six Articles on Mergers and Acquisitions” released in September 2024.

PE firms are leveraging these acquisitions to integrate industries and enhance their investment portfolios. For example, Zhanpeng Technology, which saw its stock price surge, has been taken over by Silicon Valley Heaven, with its chairman, Bao Yue, appointed as the company’s chairman. This move exemplifies how PE firms are using listed companies as platforms for industry integration and value maximization.

Overall, the recent activities in the military informationization sector and the rise in A-share company takeovers highlight the dynamic interplay between industry challenges and capital market opportunities.