Company Overview - Galaxy Magnetics (300127.SZ) has announced its first acquisition plan in 15 years to expand its business scale by purchasing 100% equity of Sichuan Kyoto Longtai Technology Co., Ltd. [1] - The acquisition will be financed through a combination of issuing shares and cash payments, with the transaction price yet to be determined [1][2]. - The company has signed a letter of intent with 14 shareholders of Kyoto Longtai, but a formal agreement has not yet been established, indicating significant uncertainty [1]. Acquisition Rationale - The acquisition aims to diversify Galaxy Magnetics' business portfolio, as both companies operate in the magnetic materials sector [2]. - The company sees growth potential in Kyoto Longtai's permanent ferrite business, especially given the limitations of the bonded neodymium iron boron magnet industry, which has led to slow revenue growth for Galaxy Magnetics [2]. Kyoto Longtai Profile - Kyoto Longtai, established in December 2011, is a national high-tech enterprise specializing in the research, development, production, and sales of permanent ferrite materials [2]. - The company has received multiple rounds of financing since 2017, including a notable 40 million yuan investment in 2018 [2]. Market Outlook - The global bonded neodymium iron boron magnet market is projected to reach $726 million by 2025 and $1.066 billion by 2032, with a CAGR of 5.64% from 2025 to 2032 [3]. - The high-performance rare earth permanent magnet market is expected to achieve sales of $8.215 billion in 2024, growing to $14.52 billion by 2031, with a CAGR of 8.6% from 2025 to 2031 [3]. Financial Performance - In the first half of the year, Galaxy Magnetics reported revenue of 389 million yuan, a year-on-year decrease of 2.01%, while net profit attributable to shareholders increased by 7.26% to 84.248 million yuan [3].