Core Viewpoint - Yangjie Technology's acquisition of 100% equity in Better Electronics for 2.218 billion yuan at a nearly threefold premium highlights the company's ambition to expand in the power semiconductor sector [1][2][3]. Group 1: Acquisition Details - The acquisition price of 2.218 billion yuan represents a valuation increase of 270.46% compared to Better Electronics' book value of 5.99 billion yuan [3]. - Better Electronics is a high-tech enterprise focused on the research, production, and sales of power electronic protection components [2][8]. - The performance commitment requires Better Electronics to achieve a net profit of no less than 555 million yuan from 2025 to 2027 [3][4]. Group 2: Financial Performance - Yangjie Technology reported a revenue of 3.455 billion yuan in the first half of the year, a year-on-year increase of 20.58%, with a net profit of 601 million yuan, up 41.55% [5]. - The company's gross margin improved from 29.63% to 33.79%, and net margin increased from 14.75% to 17.28% [5]. - As of the end of the first half, Yangjie Technology's cash flow from operating activities was 757 million yuan, a 43.43% increase compared to the same period last year [6]. Group 3: Market Context - The global circuit protection market is projected to grow from 52.9 billion USD in 2023 to 96.4 billion USD by 2032, with a compound annual growth rate (CAGR) of 6.9% [10]. - The Chinese market is expected to see a more significant growth rate of 10.6% CAGR from 2023 to 2030, potentially exceeding 65 billion yuan by 2030 [10]. Group 4: Strategic Implications - The acquisition is expected to enhance Yangjie Technology's product matrix in the power electronics sector, providing comprehensive solutions to customers [9]. - Better Electronics has established a strong product portfolio and has been involved in setting national standards, which aligns with Yangjie Technology's strategic goals [9][10]. - The collaboration is anticipated to create synergies in product categories, technology research and development, and sales channels, thereby improving the overall competitiveness of Yangjie Technology [3][9].