Core Viewpoint - The acquisition of 85.79% of Sichao Technology by Ankai Micro for 326 million yuan aims to enhance Ankai Micro's product chain and create new profit growth points, despite Sichao Technology's current unprofitability and significant valuation drop from previous funding rounds [2][7]. Group 1: Acquisition Details - Ankai Micro plans to acquire Sichao Technology for 326 million yuan, which will make Sichao a subsidiary [2]. - Sichao Technology specializes in low-power IoT chip design, with applications in smart wearables, smart homes, and industrial instruments [3][4]. - The valuation of Sichao Technology has decreased over 66% from its last two funding rounds, where it was valued at 1.12 billion yuan and 1.166 billion yuan [7]. Group 2: Financial Performance - Sichao Technology reported cumulative losses of approximately 67.15 million yuan over 19 months, with revenues of 62.04 million yuan and 43.82 million yuan for 2024 and the first seven months of 2025, respectively [5]. - Ankai Micro has also been operating at a loss, with a net profit loss of 82.24 million yuan in the first three quarters of 2025, a 267.46% year-on-year decline [11]. - Ankai Micro's cash flow from operating activities has been negative, totaling -59.99 million yuan and -56.86 million yuan for 2024 and the first three quarters of 2025, respectively [12]. Group 3: Strategic Implications - The acquisition is seen as a strategic move for Ankai Micro to expand its product line and improve R&D efficiency by integrating Sichao's technology and expertise [9]. - Ankai Micro expects to benefit from cost reductions through centralized procurement and supply chain optimization post-acquisition [9]. - The acquisition may lead to increased financial pressure on Ankai Micro, as it will need to secure long-term loans to finance the deal [10][14].