Core Viewpoint - Huatian Technology announced plans to issue shares and cash to acquire assets and raise supporting funds, involving a related party transaction with Huayi Microelectronics, a subsidiary of its controlling shareholder, Tianshui Huatian Electronics Group. The transaction is not expected to constitute a major asset restructuring or a reverse listing but is classified as a related party transaction [1]. Group 1: Transaction Details - The transaction involves Huayi Microelectronics, which has previously attempted an IPO but failed in June 2023. The company specializes in the research, production, and sales of semiconductor power devices [2][4]. - Huatian Technology has signed a share acquisition intention agreement with the main transaction counterparties and will suspend trading from September 25, 2025, with a plan to disclose the transaction scheme within 10 trading days [1]. Group 2: Financial Performance of Huayi Microelectronics - Huayi Microelectronics reported revenues of 847 million yuan, 1.16 billion yuan, and 1.16 billion yuan for the years 2020, 2021, and 2022, respectively. However, it experienced a net profit decline, with a loss of 43.21 million yuan in 2022 [4][5]. - The company’s financial struggles are evident, as it failed to respond to the first round of inquiries during its IPO process, leading to the termination of its IPO in June 2024 [2][4]. Group 3: Financial Performance of Huatian Technology - Huatian Technology's revenue grew from 12.1 billion yuan in 2021 to 14.46 billion yuan in 2024, but its net profit decreased from 1.416 billion yuan to 616 million yuan during the same period. The net profit, excluding non-recurring gains and losses, fell from 1.1 billion yuan to 33.42 million yuan, with a loss of 308 million yuan in 2023 [7][8]. - In the first half of 2025, Huatian Technology reported a net profit of 227 million yuan, but continued to incur losses when excluding non-recurring gains and losses [9][10]. Group 4: Government Support and Shareholder Information - Huatian Technology's financial performance heavily relies on government subsidies and tax incentives, which amounted to approximately 360 million yuan and 66.58 million yuan, respectively, in the first half of 2025 [11]. - As of June 30, 2025, Huatian Technology had over 400,000 shareholders, indicating a broad base of retail investors [14][16].