KDXC(SZ:002669) Xin Lang Cai Jing·2025-12-02 02:00Core Viewpoint - The company has decided to terminate the acquisition of at least 51% of Beiyi Semiconductor Technology (Guangdong) Co., Ltd., reflecting a cautious approach in capital operations amid financial pressures and risks [1][3]. Group 1: Transaction Background - Kangda New Materials, a leader in adhesive and specialty resin materials in China, has pursued business expansion through acquisitions since 2017, acquiring companies like Biko Technology and Crystal Material Technology [2]. - Despite multiple acquisitions, the company has not achieved sustained profit growth, with net profit declining from 48 million yuan in 2022 to a loss of 246 million yuan in 2024, largely due to a significant goodwill impairment of 155 million yuan in 2024 [2]. - Beiyi Semiconductor focuses on power semiconductor module development and production, with a valuation of approximately 2.5 billion yuan based on its B+ round financing in May 2024 [2]. Group 2: Reasons for Termination - The acquisition was terminated due to insufficient progress in due diligence and audit work, as well as a lack of consensus among the parties involved [3]. - Financial pressure and cash flow concerns were significant factors, as the company faced a loss of 246 million yuan in 2024 and had not fully alleviated prior financial burdens [3]. - Discrepancies in the target's qualifications and valuation were noted, with potential issues regarding revenue and profit data, as well as concerns over the sustainability of new product profitability [3]. - Differences in transaction terms and valuation expectations between the shareholders of Beiyi Semiconductor and Kangda New Materials further complicated the acquisition [3]. Group 3: Industry Implications - The case of Kangda New Materials highlights a shift in the A-share merger and acquisition market, where companies are increasingly focusing on the profitability and synergy of acquisition targets rather than mere scale expansion [4]. - The termination of the acquisition serves as a prudent choice to avoid risks and reflects on past challenges such as goodwill impairment and asset sales [4]. - Moving forward, the company may prioritize its core adhesive business and semiconductor materials sector, aiming for growth through technological upgrades rather than capital operations [4].