Core Viewpoint - The acquisition of Hebei Jinli New Energy Technology Co., Ltd. by Foshan Plastics Technology Co., Ltd. for a total consideration of 5.08 billion yuan is seen as a strategic move towards the new energy sector, but concerns regarding Jinli's financial performance and operational risks overshadow the deal [1][4]. Financial Performance - Jinli's main business involves lithium battery wet separators, with a projected net loss of 91.34 million yuan for 2024 due to a supply-demand imbalance in the industry [1]. - The company's net profit fluctuated significantly, dropping from 364 million yuan in 2022 to 135 million yuan in 2023, and only 8.29 million yuan in the first three quarters of 2024, indicating a fragile profit model [1][2]. Performance Guarantees - The acquisition includes performance guarantees for Jinli, promising net profits of no less than 230 million yuan, 360 million yuan, and 610 million yuan for the years 2025-2027, but doubts arise due to the substantial loss in 2024 [2]. - Historical data shows that Jinli has previously failed to meet high-performance commitments, with completion rates below 50% in some years [2]. Customer Dependency - Jinli's high customer concentration poses a significant risk, as delays in payments from major clients have previously led to cash flow issues and legal actions [2]. - The competitive pricing environment in 2024 may further weaken Jinli's profitability due to the bargaining power of large customers [2]. Debt and Financial Health - Jinli's debt levels have surged due to high-leverage financing for expansion, with a debt-to-asset ratio rising from 53.33% at the end of 2023 to 61.05% in September 2024, significantly above the industry average of around 40% [3]. - Foshan Plastics has also seen a notable increase in short-term borrowings, with a year-on-year rise of 52.45% in the first quarter of 2025 [3]. Legal and Technical Risks - Jinli has faced patent infringement disputes with industry leader Enjie, with claims amounting to several hundred million yuan, raising concerns about its technical independence [4]. - The high technical barriers in the separator industry, requiring over four years for equipment procurement and customer certification, may hinder the expected synergies from the acquisition [4]. Overall Assessment - While the acquisition aligns with the growth potential in the new energy sector, Jinli's underutilized capacity, customer dependency, profit volatility, and debt risks present significant uncertainties [4].