Core Viewpoint - The acquisition plan by Zhichun Technology (603690.SH) aimed at enhancing its semiconductor industry layout has been officially terminated after 8 months of planning due to a lack of consensus on key transaction terms and changing market conditions [1][2]. Group 1: Acquisition Details - Zhichun Technology announced the termination of the acquisition of Weidun Crystal Phosphorus, a company specializing in high-purity electronic materials for the semiconductor sector, which was intended to strengthen its business portfolio [1][2]. - The acquisition was first disclosed on February 17, 2025, with plans to purchase 83.7775% of Weidun Crystal Phosphorus through a combination of share issuance and cash payment [1][2]. - The strategic significance of the acquisition was highlighted, as it was expected to enhance Zhichun Technology's core competitiveness and create synergies in business and customer resources [1][2]. Group 2: Financial Performance - Following the termination of the acquisition, Zhichun Technology reported a decline in its financial performance, with Q3 2025 revenue at 759 million yuan, a year-on-year decrease of 10.33% [2]. - For the first three quarters of 2025, the company achieved a total revenue of 2.367 billion yuan, down 10.33%, and a net profit attributable to shareholders of 84.697 million yuan, down 56.08% [2]. - The company’s performance in the first half of 2025 showed a revenue increase of 5.25% year-on-year, but net profit decreased by 46.68% due to operational challenges [2]. Group 3: Market Reaction - Following the announcement of the acquisition termination, Zhichun Technology's stock price fell by 4.87%, closing at 31.25 yuan, with a market capitalization of 12 billion yuan [2].

Core Viewpoint - The acquisition plan by Zhichun Technology aimed at enhancing its semiconductor industry layout has been officially terminated after 8 months of planning due to failure to reach consensus on key transaction terms and changes in market conditions [1][2][5]. Summary by Sections Acquisition Details - Zhichun Technology intended to acquire 83.7775% of Guizhou Weidun Crystal Phosphorus Electronic Materials Co., Ltd. to expand its high-purity electronic materials business in the semiconductor sector [1][3]. - The acquisition was first disclosed on February 17, 2025, and the trading suspension began on the same day [3]. Reasons for Termination - The termination was attributed to the lack of agreement on key transaction terms among the parties involved and changes in the market environment since the initial planning [2][5]. - The company emphasized that the decision was made after thorough discussions and was aimed at protecting the long-term interests of the company and its investors [5]. Financial Performance - Following the announcement of the acquisition termination, Zhichun Technology reported a decline in its financial performance for Q3 2025, with revenues of 759 million yuan, down 31.74% year-on-year, and a net profit of 45.38 million yuan, down 61.91% [5][6]. - For the first three quarters of 2025, the company recorded total revenues of 2.367 billion yuan, a decrease of 10.33%, and a net profit of 84.70 million yuan, down 56.08% [6]. Future Outlook - Despite the failed acquisition, Zhichun Technology continues to advance its layout in the electronic materials sector, with ongoing projects such as the operation of a domestic 12-inch wafer gas supply factory [6]. - The company plans to hold an investor briefing on November 3, 2025, to discuss the termination of the acquisition [7]. Market Reaction - Following the announcement of the termination, Zhichun Technology's stock price fell by 4.87%, closing at 31.25 yuan, with a market capitalization of 12 billion yuan [8].