Chang Jiang Shang Bao·2026-01-05 00:18Core Viewpoint - The acquisition of a 97.4988% stake in Shanghai Huahong Microelectronics Co., Ltd. (Huahong Micro) by Huahong Company is a strategic move to enhance its 12-inch wafer foundry capacity and resolve industry competition issues, with a transaction value of approximately 8.268 billion yuan [2][4][8]. Group 1: Acquisition Details - Huahong Company plans to issue shares to acquire Huahong Micro for approximately 8.268 billion yuan and raise an additional 7.556 billion yuan for technology upgrades and debt repayment [2][6]. - The acquisition is part of Huahong Group's commitment to eliminate industry competition, as stated in a supplementary commitment letter issued during Huahong Company's IPO [3][4]. - The valuation of Huahong Micro has increased by over three times, reflecting its rapid growth, with a net profit of over 500 million yuan in the first eight months of 2025 [2][4]. Group 2: Financial Performance - Huahong Micro's revenue for 2023 and 2024 was 2.579 billion yuan and 4.988 billion yuan, respectively, with a net profit of 522 million yuan in 2024 and a projected net profit of 515 million yuan in the first eight months of 2025 [7]. - Huahong Company's sales revenue reached 5.66 billion USD in Q2 2025, an 18.3% increase year-on-year, with a net profit of 795.20 million USD, reflecting a 19.2% increase [9]. - The asset-liability ratio of Huahong Micro was 72.42% as of August 31, 2025, indicating a need for financial restructuring [6][7]. Group 3: Strategic Implications - The acquisition is expected to enhance Huahong Company's market share and profitability by leveraging complementary technology platforms and improving operational efficiency [5][8]. - The planned fundraising of 7.556 billion yuan will be directed towards technology upgrades, research and development, and debt repayment, which will strengthen Huahong Micro's competitive position [6][7]. - The integration of Huahong Micro's advanced technologies is anticipated to yield synergies in process optimization and yield improvement, further enhancing Huahong Company's capabilities in the semiconductor foundry market [5][10].