Amlogic(SH:688099) Sou Hu Cai Jing·2025-09-20 10:38Core Viewpoint - The company, AmLogic, is pursuing an IPO in Hong Kong while facing declining revenue and net profit growth, raising concerns about its recent acquisition of a loss-making company for 316 million yuan [1][5]. Group 1: Acquisition Details - AmLogic acquired a company, ChipMinds, which has incurred losses exceeding 130 million yuan over the past year and a half, with revenue barely reaching 670,000 yuan [1][3]. - The largest shareholder of ChipMinds, Sun Dian, holds 60.57% of the equity, yet the transaction price for his stake was only 1.12 million yuan, with 21.8% of his shares transferred at zero cost [3]. - Other shareholders, holding 39.43%, will receive 315 million yuan, indicating a significant disparity in the valuation of the company [3]. Group 2: Financial Performance - AmLogic's revenue growth is projected to decline from 28.33% in the first half of 2024 to only 10.42% in 2025, while net profit growth is expected to drop from 96.06% to 37.12% [5]. - The acquisition of ChipMinds, despite its minimal revenue contribution, could negatively impact AmLogic's net profit due to the integration of ChipMinds' losses [5][7]. Group 3: Strategic Implications - AmLogic claims the acquisition is aimed at enhancing its technology capabilities, particularly in communication, as ChipMinds has developed six chip products [5]. - However, the competitive landscape in the Wi-Fi RF chip market is challenging, with established players already dominating, raising questions about ChipMinds' ability to succeed [5][7]. - The acquisition may lead to significant goodwill on AmLogic's balance sheet, which could result in impairment losses if ChipMinds fails to become profitable [7].