Core Viewpoint - DiAo Micro (688381) reported a revenue of 457 million yuan for the first three quarters of 2025, marking an 11.41% year-on-year increase, despite a decline in profits due to strategic investments for long-term development [1] Group 1: Company Overview - DiAo Micro specializes in the research, design, and sales of high-performance analog chips, initially focusing on signal chain analog chips and gradually expanding into power management analog chips [1] - The company is planning to acquire 100% of Rongpai Semiconductor, which will become a wholly-owned subsidiary, enhancing DiAo Micro's layout in the analog chip sector and broadening downstream application areas [1] Group 2: Target Company Attributes - Rongpai Semiconductor, established in 2017, is a high-performance analog chip design and R&D company with a strong focus on isolation technology, recognized as a national high-tech enterprise and a "little giant" enterprise [2] - The company's products are widely used in electric vehicles, industrial control, digital power, and smart appliances, with proprietary iDivider technology leading to breakthroughs in domestic isolation chips [2] - Rongpai has established a rich customer base, supplying automotive-grade chips to major manufacturers like BYD and CATL, and has gained recognition in the industrial sector from companies such as Siemens and Gree [2] Group 3: Synergy Effects - The acquisition is expected to create strong synergies in product categories, technology and R&D, market and customer resources, and sales and supply chain integration [3] - DiAo Micro will quickly expand its product matrix to include isolation products, leveraging Rongpai's mature patent technology and R&D resources to enhance its offerings [3] - The integration will improve customer coverage and market competitiveness, particularly in the automotive sector, where both companies can combine their resources to provide comprehensive solutions [3] Group 4: Market Insights - Recent commentary from Industrial Securities suggests that DiAo Micro's acquisition move marks a milestone in its M&A journey, positioning the company to effectively utilize its cash reserves to accelerate the integration of quality assets in the industry [4]