Core Viewpoint - The acquisition plan by GoerTek, a major player in the Chinese acoustic industry, has been terminated after nearly three months of planning, primarily due to the inability to reach consensus on key terms with the transaction counterpart [1][2]. Group 1: Acquisition Details - GoerTek announced the termination of its plan to acquire 100% equity of Mega Precision Technology Limited and Channel Well Industrial Limited from Luen Fung Commercial Holdings Limited for approximately HKD 10.4 billion (around RMB 9.5 billion) [1]. - The acquisition was initially disclosed on July 22, 2025, with the aim of enhancing GoerTek's competitiveness in the precision components sector and deepening vertical integration capabilities [2][6]. Group 2: Strategic Implications - The acquisition was seen as a move driven by the "Apple supply chain" logic, aiming to strengthen GoerTek's position as a core supplier to major clients like Apple [2][4]. - If the acquisition had proceeded, GoerTek would have transitioned from being a single component supplier to a subsystem integration supplier, similar to Luxshare Precision, thereby solidifying its status as a key supplier for Apple [6]. Group 3: Market Performance - Following the announcement of the acquisition plan, GoerTek's stock price rose significantly, with a market capitalization increase of approximately RMB 26.1 billion, reaching a peak market value of over RMB 100 billion [7]. - As of October 17, the stock price was reported at RMB 31.2 per share, reflecting a cumulative increase of over 35% since the acquisition announcement [7]. Group 4: Future Outlook - Despite the termination of the acquisition, GoerTek remains committed to its long-term strategic goals, planning to continue its development through internal growth and diversified investment opportunities [6].

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].