Huitongda Network (9878.HK) to Acquire AI SaaS Leader Boundary Consulting, Further Advancing Its Industrial Empowerment Strategy

Huitongda Network (9878.HK) to Acquire AI SaaS Leader Boundary Consulting, Further Advancing Its Industrial Empowerment Strategy

On 18 November, Huitongda Network (9878.HK) announced that it has entered into the Equity Acquisition Agreement with Boundary Consulting, an intelligent technology company focusing on e-commerce and retail enterprises. Pursuant to the agreement, Huitongda will acquire a 57% equity interest in Boundary Consulting for RMB 456 million. Upon completion, Boundary Consulting will become a subsidiary of Huitongda, and its financial results will be consolidated into the financial statements of Huitongda.

“5+ Empowerment” Strategy to Improve Efficiency Across Member Stores and Industry Value Chains

As an industrial internet platform that uses supply chain capabilities and digital technologies to empower family-run retail businesses in lower tier markets, Huitongda shares strong synergies with Boundary Consulting—a leading domestic player in the “BI + AI” space—across product offerings, technological capabilities, and data resources.

To date, Huitongda has served more than 251,000 family-run retail businesses in China’s lower-tier markets, whereas Boundary Consulting has served over 16,000 e-commerce and retail clients. The two companies are closely aligned in technology, product development, operations, and data. Hence, upon completion of the acquisition, the integration of resources will systematically enhance Huitongda’s “5+ Empowerment” capabilities.

In terms of “+ Technology”, Boundary Consulting’s “Boundary BI system”, “Boundary AI agents”, along with its other products, are expected to further enhance the capabilities of Huitongda’s “Qiancheng Cloud AI LLM” and “Qiancheng AI Super Store Manager”. These tools will help member stores and industry partners accelerate their digital transformation and improve operational efficiency.

In terms of “+ Data”, the vast volume of online data generated through Boundary Consulting’s customised solution customers will be integrated into Huitongda’s lower-tier retail big data system. Consolidated and packaged as data-driven products, these insights are expected to significantly strengthen the online competitiveness of Huitongda’s member stores and industry partners.

In terms of “+ Training”, Boundary Consulting has a team of approximately 150 e-commerce operating experts, who will provide professional, cross-scenario, and intelligent operational solutions tailored to the needs of Huitongda’s member stores and partners.

In terms of “+ Supply Chain”, across Huitongda’s major product categories—including consumer electronics, household appliances, homebuilding and renovation materials, agricultural supplies and tools, liquor and beverages, and personal care—Boundary Consulting’s top 20 customers have an annual GMV of over RMB9 billion. The two companies will deeply integrate their merchandise resources, supplying a large number of popular products from e-commerce and cities, as well as cost-effective products, into lower-tier markets. This will not only expand member store business scale, but also promote the two-way circulation between urban and lower-tier markets, as well as the circulation of the domestic economy.

In terms of “+ Marketing”, Boundary Consulting will make its full suite of e-commerce marketing resources available—including courses and tools—to help Huitongda’s customers quickly strengthen their online business capabilities.

Both companies will drive deeper integration and continuous advancement of the “5+ Empowerment” strategy, which are expected to create notable improvements in operational capabilities, service quality, and customer stickiness across Huitongda’s member stores and industry partners.

Accelerating “AI+ Strategy” to Deliver Industry-leading AI Products and Digital Intelligence Solutions

Huitongda and Boundary Consulting both possess deep AI capabilities in the B2B sector. Together, the two companies aim to develop industry-leading AI products and digital intelligence solutions for retail and industrial clients. By exploring AI-driven high-quality productivity and innovative industry models, the two will jointly promote the transformation and upgrades of the retail sector and related industry chains.

The acquisition of Boundary Consulting also marks another milestone in Huitongda’s “AI+ Strategy.”

Earlier this year, Huitongda developed its industry-specific vertical large model, Qiancheng Cloud AI LLM, and integrated it with leading models, including Qwen and DeepSeek. The model successfully completed filing with the Cyberspace Administration of China in May 2025.

In terms of agent applications, the newly upgraded “Qiancheng AI Super Store Manager” was released and officially commercialised in April this year, integrating dozens of AI agents across eight key operational scenarios: merchandise, marketing, campaigns, innovation, operations, sales, community, and customer service.

In terms of AI industry resource integration, following the full-stack AI collaboration with Alibaba Cloud in August this year, Huitongda is now deepening its AI capabilities by partnering with Boundary Consulting to build a full-stack AI product matrix tailored to retail scenarios.

The acquisition will also make direct contributions to Huitongda’s business growth, revenue mix optimisation, and profit enhancement through the increase in AI service revenue.

According to the agreement and the performance commitments, Boundary Consulting’s audited net profit attributable to owners of the parent company for 2026 to 2028 will be no less than RMB85 million, RMB100 million, and RMB115 million, respectively. In addition, as Boundary Consulting’s revenue will be recognised under Huitongda’s service revenue segment, this will drive the growth of its service revenue, further optimising its revenue mix and improving its overall gross profit margin. In short, the acquisition will further improve Huitongda’s financial performance, laying a solid foundation for long-term financial performance and valuation.