Core Viewpoint - The acquisition report outlines the acquisition of Suzhou Dongshan Precision Manufacturing Co., Ltd. by its controlling shareholders, which aims to enhance the company's capital structure and support its long-term development strategy in the consumer electronics and new energy sectors [3][15][30]. Group 1: Acquisition Details - The acquisition has been approved by the shareholders' meeting of Dongshan Precision, reviewed by the Shenzhen Stock Exchange, and registered by the China Securities Regulatory Commission [3][30]. - The acquirers, Yuan Yonggang and Yuan Yongfeng, along with their concerted action partner Yuan Fugeng, will hold over 30% of the company's shares post-acquisition, triggering mandatory tender offer obligations [3][30]. - The acquirers have committed to not transferring the newly issued shares for 36 months, allowing them to avoid making a tender offer [3][30]. Group 2: Shareholding Structure - Before the acquisition, the total share capital of Dongshan Precision was 1,705,913,710 shares, with Yuan Yonggang holding 202,226,196 shares (11.85%), Yuan Yongfeng holding 222,388,153 shares (13.04%), and Yuan Fugeng holding 58,796,052 shares (3.45%) [19]. - After the issuance, the total shares will increase to 1,831,607,532, with Yuan Yonggang's share rising to 302,781,254 (16.53%) and Yuan Yongfeng's to 247,526,917 (13.51%), resulting in a combined holding of 33.26% by the acquirers and their concerted action partner [19][30]. Group 3: Purpose of Acquisition - The acquisition aims to focus on the dual-driven development strategy, enhancing high-end production capacity for electronic circuit products and precision components to serve leading clients in the consumer electronics and new energy vehicle industries [15][30]. - The increase in shareholding by the controlling shareholders is expected to stabilize the company's equity structure and boost market confidence [15][30]. Group 4: Financial Aspects - The total amount for the acquisition is based on cash subscriptions, with Yuan Yonggang and Yuan Yongfeng committing to use their own funds for the share purchase [28][29]. - The subscription price for the shares is set at 11.24 yuan per share, adjusted from an initial price of 11.49 yuan due to the company's 2023 annual equity distribution [24][30].
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