Core Viewpoint - Huamao Technology plans to acquire 100% equity of Shenzhen Fuchuang Youyue Technology Co., Ltd., which is expected to constitute a major asset restructuring, leading to a suspension of its stock trading starting May 21, 2025 [1][4]. Group 1: Acquisition Details - The acquisition involves purchasing 19.4519% equity from Fuchuang Youyue and 100% equity from its shareholders, including Shenzhen Yinrui Technology Co., Ltd. and Shenzhen Fuchuang Youyue No. 1 Enterprise Management Partnership [4]. - Prior to the transaction, Huamao Technology held 42.1602% equity in Fuchuang Youyue through its subsidiary Huamao (Dongyang) New Materials Co., Ltd. After the acquisition, the company will hold 100% equity [4]. - The transaction is still in the planning stage, and the final agreement is subject to board and shareholder approval, as well as regulatory approval [5]. Group 2: Company Background and Strategic Intent - Fuchuang Youyue, established in August 2019 with a registered capital of 76.165 million yuan, specializes in electronic manufacturing services and has a workforce of nearly 1,000 employees [7]. - Huamao Technology has been gradually increasing its stake in Fuchuang Youyue, indicating a strategic intent to integrate and deepen its involvement in the semiconductor and computing power manufacturing sectors [6][8]. - The company aims to enhance its business layout in semiconductor and computing power manufacturing, focusing on next-generation optical communication technologies and further capital cooperation [8]. Group 3: Financial Performance - Huamao Technology has shown steady financial performance, with consecutive revenue and net profit growth from 2022 to 2024. In Q1 of this year, the company reported revenue of 537 million yuan, a year-on-year increase of 14%, and a net profit of 86 million yuan, up 60% year-on-year [8].

Core Viewpoint - Huamao Technology (603306) plans to acquire the remaining equity of its associate company, Shenzhen Fuchuang Youyue Technology Co., Ltd. (Fuchuang Youyue), aiming to hold 100% ownership after the transaction [1][3]. Group 1: Acquisition Details - The acquisition will be executed through a combination of issuing shares and cash payments, with Huamao Technology currently holding 42.1602% of Fuchuang Youyue's shares [1]. - The transaction is expected to constitute a major asset restructuring but will not change the controlling shareholder or actual controller [1]. - Trading of Huamao Technology's stock and convertible bonds will be suspended starting May 21, 2025, for a period not exceeding 10 trading days [1][2]. Group 2: Financial Aspects - Huamao Technology acquired its initial 42.16% stake in Fuchuang Youyue for approximately 383 million yuan, valuing the company at around 908 million yuan, with the remaining equity estimated at 525 million yuan [3]. - The final transaction price will be determined based on an evaluation report from a qualified assessment agency and negotiations between the parties involved [3]. Group 3: Strategic Intentions - The company has indicated intentions for further integration with Fuchuang Youyue, focusing on expanding its presence in the semiconductor and computing power manufacturing sectors [3]. - Future plans include deepening collaboration in next-generation optical communication technologies and enhancing integrated management and capital cooperation [3]. Group 4: Industry Performance - Fuchuang Youyue has reported a significant increase in profitability in the first quarter, benefiting from the ongoing prosperity in the optical communication industry [4]. - As of May 20, 2025, Huamao Technology's stock closed at 41.65 yuan per share, reaching a new high since April 2023, with a total market capitalization of 13.71 billion yuan [5].