Core Viewpoint - Huqin Technology (603296.SH), a leading ODM enterprise, announced a strategic investment of nearly 2.4 billion yuan to acquire a 6% stake in the A-share Sci-Tech Innovation Board company, Jinghe Integrated (688249.SH), aiming to enhance resource integration and collaboration within the industry chain [2][4]. Investment Details - The investment involves Huqin Technology purchasing approximately 120 million shares from Lichuang Innovation Investment Holdings at a price of 19.88 yuan per share, totaling around 2.393 billion yuan, which is about 10% lower than Jinghe's closing price on July 18 [3]. - Following the transaction, Huqin Technology will become the fourth largest shareholder of Jinghe Integrated, while Lichuang's stake will decrease to 13.08% [3][4]. Strategic Intent - Huqin Technology aims to deepen resource integration and explore potential collaborations in various business projects through this investment, reflecting confidence in Jinghe Integrated's future development and long-term investment value [4][5]. - The company plans to appoint a director to Jinghe Integrated and has secured a commitment from Lichuang to maintain a minimum shareholding of 8% for three years [4]. Company Background - Established in 2005, Huqin Technology has become a global leader in the ODM industry, serving major brands like Samsung, OPPO, and Xiaomi, with a diverse product line including smartphones, laptops, and AIoT products [5][6]. - The company reported a revenue of 109.878 billion yuan in 2024, marking a 28.76% year-on-year increase, and a net profit of 2.926 billion yuan, up 8.10% [6]. Recent Performance - In the first quarter of 2025, Huqin Technology achieved significant growth, with revenues and net profits reaching 34.998 billion yuan and 842 million yuan, respectively, reflecting year-on-year increases of 115.65% and 39.05% [6]. - The company's growth trajectory has been supported by strategic acquisitions, including a planned acquisition of 80% of Yiluda International for 2.85 billion HKD and a 65% stake in Nanchang Chunqiu for approximately 348 million yuan [7]. Global Expansion - Huqin Technology has established a dual supply system with core domestic bases and overseas VMI bases in Vietnam, Mexico, and India, to meet diverse customer demands and external uncertainties [7].