Core Viewpoint - The acquisition of a 40.91% stake in Hefei Visionox by Visionox has been officially terminated after nearly three years of attempts, primarily due to regulatory inquiries, financial constraints, and the company's ongoing struggles between expansion and losses [1][4]. Group 1: Acquisition Process - Visionox announced on October 24 that it would withdraw its application to acquire the stake in Hefei Visionox, which was initially valued at approximately 6.5 billion yuan [1][4]. - The acquisition process began in late 2022, aiming to increase Visionox's stake from 18.18% to 59.09%, viewed as a critical step for operational integration and governance optimization [1][4]. - The transaction faced multiple regulatory inquiries and was halted four times due to expired financial data and penalties against the auditing firm [4][5]. Group 2: Financial Performance - Hefei Visionox reported a revenue of 10.445 billion yuan in 2024, a 113% increase from the previous year, and a net profit of 732 million yuan, indicating a turnaround [6][7]. - However, the company's fixed assets surged to 26.044 billion yuan, primarily due to 23.768 billion yuan in construction projects, leading to an anticipated annual depreciation increase of approximately 2.089 billion yuan starting in 2025 [8][12]. - Accounts receivable stood at 4.354 billion yuan at the end of 2024, with 84.73% attributed to Visionox, highlighting a heavy reliance on related party transactions [8][10]. Group 3: Historical Context and Future Outlook - Visionox has faced continuous losses since its full transition to OLED technology in 2017, accumulating approximately 15.3 billion yuan in losses over eight years [11][12]. - Despite a high debt ratio of 82.97% as of mid-2025, the company is pursuing new production lines, including a 55 billion yuan investment in an 8.6-generation flexible AMOLED production line [12][16]. - The new project follows a similar model to previous ones, with Hefei state-owned enterprises holding the majority stake, raising questions about Visionox's ability to sustain itself without external financial support [16].