Galaxy Magnets(SZ:300127) Zheng Quan Shi Bao Wang·2025-09-26 15:14Core Viewpoint - Galaxy Magnetics plans to acquire 100% equity of Sichuan Kyoto Longtai Technology Co., Ltd. for approximately 450 million RMB, while also issuing shares to raise matching funds [1][2] Group 1: Transaction Details - The acquisition will be executed through a combination of cash payment and share issuance, with the estimated value of the target company being around 450 million RMB [1] - As of the signing date of the transaction proposal, the audit and evaluation of the target company's assets have not been completed, and thus the transaction price is not finalized [1] - The target company, Kyoto Longtai, was established in December 2011 with a registered capital of 94.6472 million RMB, focusing on the R&D, production, and sales of permanent ferrite materials [1] Group 2: Financial Performance of Target Company - Kyoto Longtai is projected to generate a revenue of 187 million RMB and a net profit of 11.5357 million RMB in 2024; for the first half of 2025, the expected revenue is 94.8539 million RMB with a net profit of 8.9 million RMB [1] Group 3: Strategic Implications - Post-transaction, Galaxy Magnetics aims to expand its product variety in magnetic materials, particularly in the automotive sector, enhancing its market share and competitive edge [2] - The target company's main business focuses on permanent ferrite materials, primarily serving the domestic market with strong demand in the automotive sector [2] - The stable prices of key raw materials, such as red iron oxide and strontium carbonate, will provide operational certainty and help mitigate risks associated with declining overseas market demand [2]