Core Viewpoint - The company has terminated its acquisition of Circuit Foil Luxembourg S.a.r.l. due to fundamental conflicts with its strategic goals arising from additional restrictions imposed by the Luxembourg Ministry of Economy, while simultaneously planning to acquire at least 51% of Anhui Huiru Technology Co., Ltd. to quickly address its production capacity nearing saturation [3][5][6]. Group 1: Acquisition Details - The company signed a letter of intent to acquire at least 51% of Anhui Huiru Technology Co., Ltd. through cash purchase and capital increase, aiming to quickly enter a production capacity of 20,000 tons per year of electrolytic copper foil [3][10]. - The specific terms and transaction amount of the acquisition will be clarified after due diligence is completed and a formal agreement is signed [4][11]. - The acquisition is not classified as a related party transaction and is not expected to constitute a major asset restructuring [4][11]. Group 2: Termination of Previous Acquisition - The company has decided to terminate the acquisition of Circuit Foil Luxembourg S.a.r.l. as the conditions for approval included restrictions that conflicted with the company's strategic objectives [5][6][13]. - The company has not made any payments beyond the contract deposit for the terminated acquisition, and the counterparty has agreed to refund the deposit [5][12]. Group 3: Strategic Implications - The acquisition of Anhui Huiru Technology is aligned with the company's strategy to integrate existing advanced production lines and equipment, enabling rapid capacity expansion to meet growing downstream demand [4][12]. - The company aims to leverage its scale advantages, supply chain capabilities, and advanced technology to enhance its business scale and profitability [4][12]. - The company will continue to pursue a dual-driven strategy of "lithium battery copper foil + electronic circuit copper foil," focusing on domestic capacity integration and technological advancements [6][13]. Group 4: Market Analysis - Analysts note that the company's strategic shift effectively mitigates overseas investment policy risks while addressing domestic capacity bottlenecks through industry consolidation, aligning with industry trends and long-term interests [7][14]. - The acquisition remains in the planning stage, and the finalization of the deal is uncertain, necessitating attention to the progress of due diligence and the signing of the formal agreement [7][14].