Core Viewpoint - The company, Greenway Technology, is diversifying its business by acquiring a controlling stake in Damo Semiconductor, marking its entry into the semiconductor industry, which aligns with its long-term strategic planning and aims to overcome challenges in its core electric vehicle business [1][2]. Group 1: Company Overview - Greenway Technology, established in 2004, specializes in the research, production, and sales of electric vehicles, including golf carts and sightseeing cars [2]. - The company went public on the Shenzhen Stock Exchange's Growth Enterprise Market in 2023, but has faced declining performance post-IPO [2]. Group 2: Financial Performance - In 2023, Greenway Technology reported a revenue of 1.083 billion yuan, a year-on-year decline of 13.82%, and a net profit of 264 million yuan, down 21.44% [2]. - The downward trend continued into 2024, with revenue dropping to 831 million yuan, a 23.15% decrease, and net profit falling to 142 million yuan, down 45.98% [2]. Group 3: Acquisition Details - Greenway Technology plans to invest 530 million yuan in Damo Semiconductor, acquiring 46.9167% of its equity for 450 million yuan and providing 80 million yuan for capital increase [1]. - Post-acquisition, Greenway Technology will hold a 51% stake in Damo Semiconductor, allowing it to consolidate the company into its financial statements [1]. Group 4: Damo Semiconductor Overview - Damo Semiconductor, founded in 2017, provides semiconductor front-end detection equipment solutions and has established a strong customer base, including major players like SMIC and TSMC [3]. - The company is projected to achieve revenues of 278 million yuan and a net profit of approximately 64.93 million yuan in 2024 [3]. Group 5: Performance Commitments - The acquisition agreement includes performance commitments for Damo Semiconductor, requiring audited net profits of no less than 70 million yuan, 80 million yuan, and 90 million yuan for the years 2025 to 2027, totaling at least 240 million yuan [3]. - If these performance targets are not met, the seller is obligated to provide cash compensation to Greenway Technology [3]. Group 6: Strategic Implications - The acquisition is expected to improve Greenway Technology's financial condition and enhance its profitability, provided Damo Semiconductor meets its performance commitments [4]. - However, the company acknowledges potential challenges in technology development, market expansion, and team integration as it enters the semiconductor sector [4].