After the failure of “hand in hand” with Baidu, palm reading technology (603533) turned around to embrace the byte jump. On November 5, the company announced that quantum leap, a wholly-owned subsidiary of byte jump, plans to acquire 11.23% of the company’s equity with RMB 1.1 billion. After the opening of the market, the stock price of palm reading technology was up and down, which was very strong. < p > < p > according to the announcement, Cheng Xiangjun, Zhang Lingyun, the controlling shareholders and actual controllers of ZhangYue Technology Co., Ltd., have signed the stock purchase agreement and supplementary agreement on ZhangYue Technology Co., Ltd., and Cheng Xiangjun and Zhang Lingyun intend to transfer their non tradable shares of 22.5225 million and 22.5225 million shares respectively to quantum leap. < p > < p > after the completion of the transaction, quantum leap held 45.045 million shares of ZhangYue technology, accounting for 11.23% of the total share capital of the company, becoming the third largest shareholder of the company. Both parties agree that the share transfer price is set at 24.42 yuan / share, which is not lower than 90% of the closing price of the listed company’s shares on the trading day before the signing date of this agreement, and the total share transfer price is 1.1 billion yuan. < p > < p > the main business of palm reading technology is Internet digital reading platform services (including digital reading payment and commercial value-added services) and copyright product business. The company uses publishers, copyright agencies, literary websites, and writers as the source of digital content of legitimate books, and carries out editing, production and aggregation management of digital content. Digital reading products are issued to Internet users through digital reading platforms such as “palm reading”. Users recharge their value on the digital reading platform to purchase virtual currency and purchase books, magazines and other digital content. < p > < p > quantum leap is a subsidiary of byte jump, which holds 100% of its equity. In fact, before the 1.1 billion yuan stake in palm reading technology, byte beat has successively invested in 6 Internet companies. In December 2019, byte hop became a new shareholder of Wuli culture, with a shareholding ratio of 13.04%; in March 2020, byte hop launched a tomato novel focusing on free reading mode; in June 2020, byte beat took a stake in Xiuwen technology, a company affiliated to moto; in June 2020, byte beat invested in Dingtian culture, which has tianyuedu, Guazi novel and Duomi reading In July 2020, byte hopping strategy invested in tower reading literature; in September 2020, byte hop took a stake in Jiuku literature network. < p > < p > for this transaction, ZhangYue technology said that the company has been focusing on the field of digital reading, while byte hop has a leading edge in the industry in terms of advertising, commercial services, search and technology platform support. The introduction of quantum leap as an important shareholder of the company through the transfer of this agreement is conducive to the introduction of advantageous resources and the improvement of the overall competition of the company Struggle. After deducting the total share price of the company, which is no more than RMB 1.870 million, the company plans to issue shares in the form of digital capital less than RMB 1.870 million. Data show that bairuixiang is a wholly-owned holding company of Baidu. < p > < p > at that time, the company announced that it would introduce Baidu as a strategic investor to enable the company’s high-quality digital reading content with the help of Baidu’s traffic ecology and Internet infrastructure, accelerate the company’s expansion of derivative forms of high-quality digital reading content and the improvement of IP operation capacity, so as to make it more efficient to open up the closed-loop mode of traffic and high-quality content production. < p > < p > as soon as the news came out, the stock price of palm reading technology began to rise. On March 18, the board trading limit of ZhangYue technology harvest was 19.68 yuan / share, and reached 43.13 yuan / share on July 13. The news of cooperation with Baidu made the company’s share price soar nearly 140%. However, the two sides did not reach cooperation in the end. Palm read technology disclosed on August 21 that it had withdrawn the application for fixed increase. By October 31, the company had withdrawn its previous application for non-public offering and signed a termination agreement with Baidu group, indicating that the company needed to implement a new content strategy in the absence of large-scale search traffic support from Baidu group. < p > < p > the stock price of palm reading technology also declined. As of the end of November 5, ZhangYue Technology Daily was 30.36 yuan / share, with a decline of 29.61% since July 13. < / P > < p > with the rapid rise of mobile Internet in recent years, digital reading industry has increasingly become the focus of attention, and its market is also expanding. According to data from CNNIC and the China Business Industry Research Institute, as of March this year, the number of users of online literature in China had reached 455 million, an increase of 23.37 million over the end of 2018. Among them, the number of mobile network literature users was 453 million, an increase of 42.38 million compared with the end of 2018, accounting for 50.5% of mobile Internet users. In 2019, the overall market scale of China’s digital reading has reached 28.88 billion yuan, with a year-on-year growth of 13.5%. However, with many large Internet enterprises entering the field of digital reading, the industry competition is becoming increasingly fierce. At present, the main participants in China’s network literature market include four categories: the first category is telecom operators, such as Migu reading and Tianyi reading; the second category is Internet giants, such as QQ reading, byte skipping tomato, baidu Qimao, etc.; the third category is independent digital reading enterprises, such as palm reading technology; the fourth category is e-commerce enterprises, such as Jingdong reading. < p > < p > the reporter of financial investment news has noticed that since its listing in 2017, in the face of the expanding market, the revenue growth has not been particularly advantageous. From 2017 to 2019, the revenue of palm reading technology reached 1.667 billion yuan, 1.903 billion yuan and 1.882 billion yuan, with the growth rates of 14.17% and – 1.09% in 2018 and 2019. In the first three quarters of this year, the company achieved a revenue of 1.495 billion yuan, with a year-on-year growth of only 7.83%. In addition, China’s regulatory policies on the Internet information technology industry and digital publishing industry are also constantly adjusting and improving. If the future industry regulatory policy adjustment leads to the company’s business scope, business model, etc. unable to adapt to the regulatory system and policy requirements after adjustment, it will have a certain adverse impact on the stability of the company’s business operation. < p > < p > the purpose of this article reprinted by China net finance and economics is to convey more information, which does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks.