Zhong Guo Ji Jin Bao·2025-08-31 11:22Core Viewpoint - Huahong Company plans to acquire 97.4988% of Shanghai Huahong Microelectronics Co., Ltd. through a share issuance and cash payment, aiming to resolve industry competition issues and enhance asset quality [1][4]. Group 1: Transaction Details - The transaction involves four parties, including Huahong Group and various investment funds, with all parties controlled by the Shanghai State-owned Assets Supervision and Administration Commission [3]. - Huahong Company has been suspended from trading since August 18 and plans to resume on September 1 [1]. - The acquisition will result in Huahong Company holding 100% of Huahong Micro, addressing the competition issue between the two entities [1][4]. Group 2: Market Position and Financial Impact - Huahong Micro is engaged in wafer foundry services and possesses the first fully automated 12-inch integrated circuit chip manufacturing line in mainland China [5]. - The transaction is expected to enhance Huahong Company's market position and operational synergies in technology, customer resources, and supply chain management [5][6]. - Post-transaction, Huahong Company will gain an additional capacity of 38,000 wafers per month in the 65/55nm and 40nm process nodes [6]. Group 3: Financial Performance - As of June 30, 2025, Huahong Micro's total assets are projected to be 7.58 billion, with net assets of 1.84 billion [8]. - Huahong Micro's revenue is expected to grow significantly, with projected figures of 2.579 billion, 4.988 billion, and 2.466 billion for 2023, 2024, and the first half of 2025, respectively [9]. - In contrast, Huahong Company's revenue has been declining, with figures of 16.786 billion, 16.232 billion, and 14.388 billion for the same years, alongside a significant drop in net profit [9].