Core Viewpoint - Goer Group is transitioning from a single acoustic module company to a consumer electronics platform-level enterprise, with recent strategic acquisitions aimed at enhancing its competitive edge in precision structural components and deepening vertical integration [2][10]. Acquisition Details - Goer Group announced a preliminary agreement to acquire 100% equity of Mia Precision Technology and Changhong Industrial for approximately HKD 10.4 billion (around RMB 9.5 billion) to strengthen its capabilities in the precision structural component sector [2][7]. - The acquisition is seen as a move to consolidate the supply chain and enhance cooperation with leading clients, implicitly referring to major players like Apple [2][5]. Market Position and Strategy - The acquisition aligns with Apple's strategy of encouraging core suppliers to make strategic acquisitions to streamline supply chains and reduce risks [4][10]. - Goer Group aims to become a systematic integrator for consumer electronics manufacturers, particularly in light of the increasing demand for lightweight wearable devices, including AR glasses [6][9]. Financial Performance - In 2023, Goer Group reported a revenue of RMB 98.57 billion, a decrease of 6.03% year-on-year, and a net profit of RMB 1.09 billion, down 37.80% year-on-year, highlighting the impact of reduced orders from Apple [11]. - Following a recovery in relations with Apple, Goer Group is expected to return to growth, with projections for 2024 indicating a revenue rebound to RMB 100.95 billion and a net profit increase of 144.93% [11][12]. Future Outlook - The acquisition is anticipated to enhance Goer Group's competitive position in high-value products like AI glasses and wearable devices, integrating sound, light, and structure capabilities [12]. - The strategic move may position Goer Group as a subsystem integrator within Apple's supply chain, similar to Luxshare Precision [10][12].