Core Viewpoint - The termination of the acquisition of Mia Precision Technology and Changhong Industrial by Goer Group reflects a cautious approach to large-scale mergers and acquisitions, despite the initial optimism surrounding the deal [4][11][18]. Acquisition Background - On July 22, 2023, Goer Group announced plans to acquire 100% of the shares of Mia Precision Technology and Changhong Industrial for approximately HKD 104 billion (about RMB 95 billion), which was seen as a strategic move to strengthen its precision structural components business [6][7]. - The target companies were projected to generate a combined revenue of approximately HKD 91.1 billion in 2024, showcasing their strong technical capabilities in the precision metal structure field [6][7]. Reasons for Termination - The official reason for the termination was that the parties could not reach an agreement on key transaction terms, with reports suggesting issues discovered during due diligence related to the target assets [4][11]. - Goer Group's recent financial performance has been stable, with a revenue of RMB 37.549 billion and a net profit of RMB 1.417 billion in the first half of 2025, indicating that the company may not have viewed the acquisition as the best option given its existing business overlaps [11][13]. Strategic Direction - Despite the termination of the acquisition, Goer Group continues to pursue growth through other avenues, including a significant transaction involving its subsidiary Goer Optics, aimed at enhancing its core competitiveness in micro-nano optical devices [15][18]. - The company has been actively expanding its technological capabilities, including recent acquisitions to bolster its position in the AR and AI hardware sectors, indicating a focus on maintaining a balance between rapid growth and prudent decision-making [15][16][18]. Market Outlook - The global market for mixed reality (MR) and augmented reality (AR) devices is expected to grow significantly, with IDC predicting an increase in MR shipments from 3.3 million units in 2025 to 15.2 million units by 2029, suggesting a favorable environment for Goer Group's strategic initiatives [16].