Core Viewpoint - Shanghai ZhiChun Clean System Technology Co., Ltd. (hereinafter referred to as "ZhiChun Technology") has reported a significant decline in net profit for 2024, despite a revenue increase, highlighting the challenges faced in the semiconductor equipment industry [1][2]. Financial Performance - In 2024, ZhiChun Technology achieved operating revenue of 3.605 billion yuan, a year-on-year increase of 14.40% [1] - The net profit attributable to the parent company was 23.5975 million yuan, a decline of over 90% year-on-year [2] - The company reported a shift from profit to loss in net profit after deducting non-recurring gains and losses [1] - In Q1 2025, ZhiChun Technology's revenue was 728 million yuan, down 10.32% year-on-year, with a net profit of 19.0161 million yuan, a decrease of 70.09% [3] Market Dynamics - In 2024, 84.55% of new orders came from the integrated circuit industry, primarily from leading users such as SMIC and Shanghai Huali [2] - The company faced increased competition in the semiconductor wet process equipment sector, which has a relatively low technical threshold and high domestic production rates [2] Strategic Initiatives - ZhiChun Technology plans to acquire 83.78% of Guizhou Weidun Crystal Phosphorus Electronic Materials Co., Ltd. to enhance its competitiveness in the semiconductor materials sector [1][4] - The acquisition aims to integrate high-purity electronic materials into ZhiChun Technology's business, improving its service offerings and core competitiveness [4] - The company anticipates new orders between 5.5 billion and 6 billion yuan for 2025, with a focus on high-end cleaning equipment [4] Ongoing Transactions - As of now, the audit, evaluation, and due diligence for the acquisition of Weidun Crystal Phosphorus are in progress, with further board meetings planned to discuss the transaction [5] - The acquisition is seen as a way to quickly integrate resources and optimize business layout, although it may face challenges such as financial risks and integration difficulties [5]