Core Viewpoint - The valuation of Hunan Friendship Apollo Commercial Co., Ltd. (referred to as "Youa Co.") for its asset acquisition and fundraising has been assessed at 1.757 billion yuan, reflecting an increase of 805 million yuan or 84.60% over its book value, indicating a cautious yet optimistic outlook on the company's market value [1][2]. Valuation Methodology - The assessment utilized the market approach, which yielded a valuation of 1.757 billion yuan, significantly higher than the asset-based approach valuation of 1.124 billion yuan, which showed an increase of 172 million yuan primarily from intangible assets [2][3]. - The income approach was not employed due to the high uncertainty in cash flow projections within the semiconductor power device industry, influenced by macroeconomic and geopolitical factors [2][3]. Intangible Assets - Intangible assets showed a remarkable increase, with a book value of 148,480 yuan being appraised at 11.7 million yuan, resulting in a valuation increase of 78 times [3]. - The assessment of intangible assets, including trademarks and patents, aligns with industry standards and reflects the company's status as a national high-tech enterprise with numerous authorized patents [3]. Historical Valuation Fluctuations - The historical valuation of the assets has varied significantly, with a notable decline of 65.4% from the last round of financing (C round) valuation of 5.081 billion yuan to the current assessment of 1.757 billion yuan [4]. - Factors contributing to this decline include a downturn in the semiconductor industry, a drop in the company's net profit, and a decrease in industry valuation multiples [4]. Comparable Company Analysis - The valuation assessment included comparisons with similar companies, confirming that Youa Co. operates under a similar Fabless model and focuses on power semiconductor devices [5][6]. - The assessed value of Youa Co. is below the average market value increase of 164.91% for similar transactions in the semiconductor sector, indicating a conservative valuation approach [5][6]. Post-Valuation Performance - Following the valuation date, Youa Co. has shown signs of operational improvement, with a projected 58% increase in net profit for the first half of 2025 compared to the previous year [7]. - The financial performance post-assessment suggests a recovery trend, supporting the valuation's fairness and the protection of shareholder interests [7].