Core Viewpoint - Jiangfeng Electronics plans to acquire control of Kaide Quartz, marking the first "A-share eats A-share" transaction in the A-share market for 2026, which is expected to enhance its position in the semiconductor supply chain [3][8]. Group 1: Acquisition Details - Jiangfeng Electronics will pay cash to acquire control of Kaide Quartz, which specializes in quartz products for semiconductor integrated circuits [3][7]. - The acquisition is anticipated to strengthen Jiangfeng's product matrix from metal targets to non-metal components, providing a comprehensive solution for downstream chip manufacturing clients [12][13]. - The total market value of Kaide Quartz is approximately 3.8 billion yuan [4][10]. Group 2: Financial Performance - Jiangfeng Electronics expects to achieve a net profit of over 430 million yuan in 2025, continuing its growth trajectory [6][17]. - Kaide Quartz is also a profitable company, but its net profit is projected to decline in 2023 and 2024, with a 24.57% decrease in the first three quarters of 2025 [17]. - The acquisition is expected to further enhance Jiangfeng's earnings and market competitiveness despite Kaide's current performance challenges [17]. Group 3: Strategic Importance - The acquisition is seen as a critical step for Jiangfeng Electronics to fill gaps in its non-metal materials segment and leverage synergies between the two companies [12][13]. - Jiangfeng Electronics has established itself as a leading supplier in the global target material market, serving major clients like TSMC and SMIC [5][15]. - The company is actively pursuing a fundraising initiative to support its growth, aiming to raise over 1.9 billion yuan for various projects, including the production of semiconductor components [5][16].