Core Viewpoint - The acquisition of a 62.5% stake in Jiangsu Jingkai Semiconductor Technology Co., Ltd. by Dike Electronics is aimed at enhancing its capabilities in the storage chip sector, aligning with the company's long-term strategy in the semiconductor industry [1][2][3] Group 1: Acquisition Details - Dike Electronics announced a cash payment of 300 million yuan for the acquisition of the stake in Jiangsu Jingkai, which will become a subsidiary and included in the consolidated financial statements [1] - Following the announcement, Dike's stock price fell over 14% on the first trading day, closing at 64.42 yuan per share, a decrease of 4.76% [1] Group 2: Strategic Intent - The acquisition is part of Dike's strategy to leverage the global energy transition and national semiconductor strategy, focusing on high-performance electronic materials for photovoltaic and semiconductor applications [2] - Dike's previous acquisition of a 51% stake in Shenzhen Yimeng Holdings Technology Co., Ltd. in September 2024 marked its entry into the storage chip business, which has seen rapid growth due to the domestic storage industry [2] Group 3: Market Position and Synergy - Jiangsu Jingkai is one of the few companies in China that offers a complete service chain for storage chip testing and packaging, which complements Dike's existing capabilities [2][3] - The acquisition is expected to create significant synergies, enhancing Dike's ability to respond to market demands and improve product quality consistency [3] Group 4: Performance Commitments - The transaction includes performance commitments from the sellers, with net profit targets set for Jiangsu Jingkai for the years 2025 to 2028, starting from a minimum of 1 million yuan in 2025 [3][4] - In 2024, Jiangsu Jingkai reported revenues of 91.2 million yuan and a net profit of 13.54 million yuan, with a challenging start in 2025, showing a net loss of 372,000 yuan in the first four months [4] Group 5: Industry Outlook - The demand for storage chips is expected to surge due to the rapid development of technologies such as 5G, artificial intelligence, and the Internet of Things, providing a strong growth impetus for Jiangsu Jingkai [5] - The company is positioned to enhance its testing and packaging technology to meet the increasing market demand for high-end storage chips, which could lead to rapid performance growth [5]