Group 1 - The core point of the news is that GoerTek plans to acquire 100% equity of Mega Precision Technology Limited and Channel Well Industrial Limited for approximately HKD 10.4 billion to enhance its vertical integration and competitiveness in the precision components sector [1][2] - The acquisition is aimed at strengthening GoerTek's capabilities in precision structural components, which are increasingly in demand due to advancements in AI and smart hardware products [2][3] - The target companies have a strong competitive position in the precision metal structure component field, with significant revenue and asset scales, and they complement GoerTek's existing business [2][3] Group 2 - GoerTek reported a revenue of CNY 100.95 billion for 2024, a year-on-year increase of 2.41%, and a net profit of CNY 2.665 billion, up 144.93% [3] - In Q1 2025, GoerTek's revenue was CNY 16.305 billion, a year-on-year decrease of 15.57%, while net profit was CNY 469 million, an increase of 23.53% [3] - The market has a positive outlook on GoerTek's long-term development, driven by the recovery in industry demand and the integration of AI technology with smart hardware products [4]

Core Viewpoint - The company plans to acquire 100% equity of Mega Precision Technology Limited and Channel Well Industrial Limited for approximately HKD 10.4 billion (around RMB 9.5 billion), aiming to enhance its vertical integration and competitiveness in the precision structural components sector [2][3][4]. Group 1: Acquisition Details - The acquisition is intended to secure high-quality assets and improve the company's vertical integration capabilities, which will enhance its competitiveness in the precision structural components market [3][4]. - The target companies, Mega Precision and Channel Well, are recognized for their leading position in the precision metal structural components industry, with strong technical capabilities in material processing and surface treatment [4][5]. - The combined projected revenue for the two target companies in 2024 is approximately HKD 9.11 billion (unaudited) [5]. Group 2: Company Overview - The company, established in 2001 and listed in 2008, focuses on consumer electronics and automotive electronics, offering precision components and smart hardware products [6]. - Key products include acoustic, optical, microelectronics, and structural components, serving leading clients in the global technology and consumer electronics sectors [6]. Group 3: Financial Performance - In 2024, the company reported revenue of RMB 100.95 billion, a year-on-year increase of 2.41%, and a net profit of RMB 2.665 billion, up 144.93% [7]. - For Q1 2025, the company achieved revenue of RMB 16.305 billion, a year-on-year decrease of 15.57%, while net profit rose by 23.53% to RMB 469 million [7]. - The market has maintained a high valuation for the company due to its extensive applications in AI and VR, with positive growth expected in its precision components and smart hardware segments [7]. Group 4: Market Outlook - Analysts are optimistic about the company's long-term growth, citing the recovery in industry demand and the successful progress of its precision components and smart hardware businesses [7]. - The company's strong market position in XR manufacturing and the recovery of its major clients' headphone businesses are expected to contribute to revenue and performance growth [7]. Group 5: Stock Information - As of July 22, the company's stock price was RMB 23.81 per share, with a market capitalization of RMB 83.1 billion [8].