Core Viewpoint - Huahong Company plans to acquire 97.4988% equity of Huahong Microelectronics through a combination of share issuance and cash payment, while also raising matching funds from specific investors [2][6]. Group 1: Transaction Details - The transaction involves purchasing shares from four shareholders, including Huahong Group and various investment funds [6]. - The issuance price is set at 43.34 yuan per share, which is 80% of the average trading price over the last 120 trading days [6]. - The total amount of matching funds raised will not exceed 100% of the transaction price for the asset purchase, with the number of shares issued capped at 30% of the total share capital post-transaction [6]. Group 2: Financial Implications - The funds raised will be used for working capital, debt repayment, cash payment for the acquisition, and project construction, with a maximum of 25% of the transaction price allocated for working capital and debt repayment [6]. - Following the transaction, Huahong Micro will become a subsidiary of Huahong Company, which is expected to enhance the company's total assets, net assets, revenue, and net profit [9]. Group 3: Company Performance - In the first half of 2025, Huahong Company reported revenue of 8.018 billion yuan, a year-on-year increase of 19.09%, but net profit decreased by 71.95% to 74.3154 million yuan [9]. - Huahong Company specializes in customized semiconductor wafer foundry services across various technology nodes and is a leading player in the specialty process wafer foundry industry [9]. Group 4: Strategic Benefits - The acquisition is expected to enhance Huahong Company's 12-inch wafer foundry capacity and create synergies in technology and operational efficiency [10]. - The integration of resources and core technologies is anticipated to accelerate innovation and improve competitive advantages in logic and specialty processes [10].