Core Viewpoint - The acquisition plan by GoerTek Inc. has been terminated after nearly three months of consideration, primarily due to the inability to reach an agreement on key terms with the transaction counterparties [1][2]. Group 1: Acquisition Details - The acquisition was initially disclosed on July 23, with an intended investment of approximately 10.4 billion HKD (around 9.5 billion RMB) to acquire 100% equity of two subsidiaries of Luen Fung Commercial Holdings Limited [2]. - The targeted subsidiaries are Mega Precision Technology Limited and Channel Well Industrial Limited, aimed at enhancing GoerTek's competitiveness in the precision components sector [2]. Group 2: Reasons for Termination - GoerTek stated that despite active due diligence, auditing, and negotiations, the parties could not agree on critical transaction terms, leading to the termination of the acquisition [2]. Group 3: Future Strategy - GoerTek emphasized its commitment to pursuing its strategic goals through organic growth and diversified investment and acquisition strategies to enhance long-term development quality and shareholder value [2].

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 - The acquisition plan by GoerTek, involving a total amount of 9.5 billion RMB (approximately 10.4 billion HKD), has been unexpectedly terminated after nearly three months of planning due to failure to reach consensus on key terms between the parties involved [1][3][5]. Group 1: Acquisition Details - GoerTek announced the termination of the acquisition of 100% equity in Mega Precision Technology Limited and Channel Well Industrial Limited on October 17, citing that both parties could not agree on critical terms after extensive due diligence and negotiations [1][3][4]. - The acquisition was initially disclosed on July 23, 2025, with the aim of enhancing GoerTek's competitiveness in the precision components sector and deepening vertical integration capabilities [3][6]. Group 2: Market Reaction - Following the announcement of the acquisition, GoerTek's stock price surged, peaking above 40 RMB with an increase of over 70%, but has recently experienced a decline [2][6]. Group 3: Future Strategy - Despite the termination of the acquisition, GoerTek remains committed to its long-term strategic goals, focusing on internal development and diversified investments to enhance company value and shareholder returns [6][8]. - GoerTek's precision components business has shown significant growth, achieving revenue of 7.604 billion RMB, a year-on-year increase of 20.54%, with a gross margin of 23.49% [6][8]. Group 4: Ongoing Initiatives - Concurrently, GoerTek is pursuing other strategic initiatives, including a significant transaction by its subsidiary GoerTek Optics, which plans to increase its registered capital by 530 million RMB to acquire 100% equity in Shanghai Aolai for 1.903 billion RMB [7]. - GoerTek Microelectronics, responsible for sensor business, is also preparing for an IPO in Hong Kong, having submitted its application to the stock exchange, with projected revenues of 4.536 billion RMB for the fiscal year 2024 [8].

Core Viewpoint - The acquisition plan by GoerTek, involving a total amount of 9.5 billion RMB (approximately 10.4 billion HKD), has been unexpectedly terminated after nearly three months of planning due to the inability to reach consensus on key terms between the parties involved [1][4][7]. Group 1: Acquisition Details - GoerTek announced the termination of the acquisition of 100% equity in Mega Precision Technology Limited and Channel Well Industrial Limited, subsidiaries of Luen Fung Commercial Holdings Limited, which was initially disclosed on July 23, 2025 [1][4]. - The acquisition aimed to enhance GoerTek's competitiveness in the precision components sector and deepen vertical integration capabilities [4][5]. - The termination was attributed to the failure to agree on critical terms during due diligence and negotiations, despite ongoing efforts from both parties [1][6][7]. Group 2: Market Reaction and Financial Impact - Following the announcement of the acquisition, GoerTek's stock price surged, peaking above 40 RMB with an increase of over 70%, but has recently experienced a decline [2][4]. - GoerTek emphasized that the termination of the acquisition would not adversely affect its operational performance or financial status, and no legal liabilities would arise from this decision [2][7]. Group 3: Future Strategic Direction - Despite the termination of the acquisition, GoerTek reaffirmed its commitment to its long-term strategic goals, focusing on internal growth and diversified investments to enhance company value and shareholder returns [8]. - The precision components segment has shown significant growth, with revenue reaching 7.604 billion RMB, a year-on-year increase of 20.54%, and a gross margin of 23.49% [8]. - GoerTek is pursuing other strategic initiatives, including a significant transaction involving its subsidiary GoerTek Optics, aimed at strengthening its core competitiveness in optical devices [9]. Group 4: Capital Operations - GoerTek Microelectronics, responsible for sensor business, is actively preparing for an IPO in Hong Kong, having submitted its application to the stock exchange [10]. - The company reported projected revenues of 4.536 billion RMB for the fiscal year 2024, with a profit of 309 million RMB, and holds a leading market share in the acoustic sensor sector [10].

Industry Overview - The global headphone market grew from $8.4 billion in 2013 to $58.3 billion in 2022, with a CAGR of 24.02%[15] - China's headphone industry output increased from ¥49.256 billion in 2013 to ¥137.422 billion in 2021, achieving a CAGR of 13.68%[20] - The wireless headphone segment in China saw a rapid growth with a CAGR of 36.66% from ¥7.839 billion in 2013 to ¥95.351 billion in 2021[20] Market Trends - The high-fidelity audio system market is projected to reach $3.101 billion globally by 2024, with a CAGR of 3.90% from 2020[26] - China's high-fidelity audio system market is expected to grow to $0.652 billion by 2024, with a CAGR of 2.84%[31] - The professional audio market globally is forecasted to reach ¥139.824 billion by 2024, with a CAGR of 5.00% from 2020[34] Company Performance - HIFIMAN's revenue for H1 2025 was ¥107 million, a year-on-year increase of 20.77%[45] - HIFIMAN's gross margin and net margin for 2024 were 70.10% and 29.42%, respectively[45] - XGIMI International's revenue for H1 2025 was ¥226 million, with a slight decrease of 0.13% year-on-year[51] Market Sentiment - The median stock price change for the North Exchange consumer service sector was -6.65% from September 22 to September 26, 2025[57] - The median P/E ratio for the consumer service sector decreased from 48.4X to 46.1X during the same period[62] - The total market capitalization for the North Exchange consumer service sector fell from ¥123.863 billion to ¥117.746 billion[67]

Investment Rating - The report indicates a negative trend in the stock prices of the consumer service sector on the Beijing Stock Exchange, with a median decline of -6.65% for the week [2][42]. Core Insights - The Chinese electroacoustic industry has maintained rapid development since the 1980s, with leading domestic manufacturers transitioning from low-end markets to high-end electroacoustic markets [5][6]. - The global headphone market has grown from $8.4 billion in 2013 to $58.3 billion in 2022, with a CAGR of 24.02%. China's headphone industry output value increased from 49.256 billion yuan in 2013 to 137.422 billion yuan in 2021, achieving a CAGR of 13.68% [9][12]. - The report highlights two companies planning to list on the Beijing Stock Exchange: HIFIMAN, a high-end electroacoustic brand, and XGIMI International, which focuses on high-fidelity audio products [2][30]. Summary by Sections 1. Domestic Leading Electroacoustic Manufacturers - The Chinese electroacoustic industry has developed a complete industrial system and supply chain, with manufacturers increasing R&D investments to enhance technical capabilities [6][7]. - The market for high-fidelity audio systems is expected to grow, with the global market projected to reach $3.101 billion by 2024, and China's market expected to reach $652 million [16][20]. 2. Overall Market Performance - The median price-to-earnings (P/E) ratio for the consumer service sector on the Beijing Stock Exchange decreased from 48.4X to 46.1X, indicating a decline in market valuation [42][45]. - The total market capitalization of consumer service enterprises fell from 123.863 billion yuan to 117.746 billion yuan during the reporting period [49][51]. 3. Industry P/E Ratios - The median TTM P/E ratio for the broader consumer industry decreased from 61.2X to 57.2X, reflecting a downward trend in valuations across various sectors [56][58]. - The P/E ratio for the food and beverage sector also saw a decline, dropping from 43.7X to 41.7X [58][60]. 4. Company Announcements - Dahu Biological has established a wholly-owned subsidiary to extend its business into pig farming, indicating a strategic move to diversify its operations [64][65].

Core Viewpoint - The announcement of share reduction by the controlling shareholder of Jiahe Intelligent is seen as a negative signal for the company's financial health, especially following a significant decline in net profit and the exit of major shareholders [1][9]. Group 1: Shareholder Actions - Dongguan Wenfu Industrial Investment Co., Ltd. plans to reduce its holdings by up to 6 million shares, representing 1.59% of the total share capital [1]. - The top ten shareholders' combined holding has decreased from 42.37% in mid-2024 to 33.95% in mid-2025, indicating a significant exit of major shareholders [1][2]. Group 2: Financial Performance - In the first half of 2025, the company reported a 10.82% decline in revenue, with a gross margin dropping to 14.07%, down 4.11 percentage points from the 2023 peak [5][6]. - The net profit for the first half of 2025 fell by 38.12% to 0.25 billion, with the non-recurring net profit plummeting by 90.6% to only 0.25 million [6][7]. Group 3: Industry Context - The consumer electronics industry, particularly in the audio product sector, is facing intense competition, leading to a situation where brand owners are gaining more market power while ODM manufacturers like Jiahe Intelligent struggle [4][7]. - The company relies heavily on major clients such as Harman and Beats, which increases its vulnerability to pricing pressures and order reductions [7][8]. Group 4: Future Outlook - The company's new business segments, such as smart wearables, contribute minimally to overall revenue, with smart wearables accounting for only 10.08% of revenue in the first half of 2025 [8]. - The outlook remains pessimistic due to the slow expansion of new business areas and the ongoing decline in traditional business performance [7][8].

Core Viewpoint - Jiahe Intelligent Technology Co., Ltd. is taking steps to enhance the operational efficiency of its assets by leasing out idle assets from its wholly-owned subsidiary, Dongguan Jiahe Acoustic Technology Co., Ltd. [1] Summary by Relevant Sections - **Asset Leasing Details** - The company plans to lease out part of its idle assets located at No. 151, Shipaizhen Dongyuan Avenue, Dongguan City, Guangdong Province [1] - The rental fee will increase by 10% every three years, with the first rental period from January 1, 2026, to December 31, 2028, set at a monthly rent of 235,930.5 yuan (including tax) [1] - The subsequent rental period from January 1, 2029, to December 31, 2031, will have a monthly rent of 259,523.55 yuan (including tax) [1] - The total contract amount for the lease is 17.8363 million yuan [1]

Group 1: Financial Performance and Challenges - The company's net profit significantly declined in the first half of 2025 due to the ongoing impact of U.S. tariff policies, which began in April 2025, leading to order adjustments and revenue losses [2] - The shift of production to Malaysia to ensure order fulfillment resulted in increased short-term expenses and production efficiency losses, directly affecting gross profit [2] - The company is facing continued pressure on performance in the short term due to increased R&D investments and unfavorable exchange rate fluctuations [3] Group 2: Production Capacity and Expansion - The production area in Malaysia has expanded threefold, with maximum capacity increasing nearly tenfold, laying a solid foundation for future operations [3] - A second overseas production base is being established in Thailand, expected to be operational by Q3 2026, with a planned capacity of approximately 1 billion RMB [4] Group 3: R&D and Innovation - The company has successfully introduced multiple well-known brand clients in 2025, covering various product ranges including optoelectronic products, gaming products, smart speakers, and hearing aid accessories [3] - As of now, the company holds 685 authorized patents, including 59 invention patents, with an additional 120 invention patents pending authorization [3] - The company is focusing on new technologies and products such as LE Audio, optical glasses, AI voiceprint recognition, and multimodal environmental recognition [3] Group 4: Strategic Direction and Core Advantages - The company is restructuring its subsidiaries and divisions into three business groups (BG) to enhance operational efficiency and innovation [4] - BG1 focuses on maintaining and deepening cooperation with major clients [4] - BG2 is responsible for acquiring new clients and innovating in the speaker product line [4] - BG3 aims to develop new wearable products integrating sound, light, electricity, and health technology [4] - Core advantages include 30 years of technical accumulation in the electroacoustic field, long-term service experience with international brand clients, and a differentiated global production base layout [4]

Group 1 - The core viewpoint of the news is that Jiahe Convertible Bond has experienced a decline in its market price and has specific financial characteristics, including a credit rating of "A+" and a conversion premium of 16.46% [1] - The bond has a maturity of 6 years with varying interest rates, starting from 0.20% in the first year to 2.50% in the sixth year, and the conversion price is set at 13.46 yuan [1] - The conversion date for the bond is July 10, 2024, allowing bondholders to convert their bonds into common stock of Jiahe Intelligent [1] Group 2 - Jiahe Intelligent Technology Co., Ltd. was listed on the Shenzhen Stock Exchange's Growth Enterprise Market in October 2019 and is recognized as a national high-tech enterprise [2] - The company specializes in the design, research and development, manufacturing, and sales of electroacoustic products, positioning itself as a leading manufacturer in the domestic market [2] - For the first half of 2025, Jiahe Intelligent reported a revenue of 1.0047 billion yuan, a year-on-year decrease of 10.82%, and a net profit attributable to shareholders of 25.1219 million yuan, down 38.12% year-on-year [2] - The company has a relatively dispersed shareholder structure, with the top ten shareholders holding a combined 35.41% of shares and a total of 52,260 shareholders [2]