Core Viewpoint - Lixing Co., Ltd. has decided to terminate the acquisition of Feiyan Steel Ball due to the inability to reach an agreement on relevant terms within the stipulated time frame [1][3]. Group 1: Acquisition Details - Lixing Co., Ltd. initially announced on March 31 that it intended to acquire the controlling stake in Feiyan Steel Ball to expand its industrial chain [1]. - Feiyan Steel Ball, established in 2004, specializes in precision steel ball manufacturing and has a strong technological foundation [1][2]. - The company’s core products include bearing steel and stainless steel balls, which are widely used in automotive, aerospace, and precision machinery sectors [1][2]. Group 2: Market Position and Advantages - Feiyan Steel Ball holds over 90% market share in the domestic commercial vehicle and heavy truck sectors for its steel ball products, supplying well-known brands like Jeep and Ford [2]. - The company has developed a unique technological barrier in the micro steel ball sector (diameter below 3mm), making it irreplaceable in both domestic and international markets [2]. - Lixing Co., Ltd. is a leading enterprise in the domestic precision bearing steel ball sector, with applications in various industries including automotive, precision CNC machine tools, and renewable energy [2]. Group 3: Strategic Implications - The acquisition was expected to enhance Lixing Co., Ltd.'s competitiveness in the micro high-precision rolling body sector and support the import substitution strategy for high-end equipment manufacturing in China [2]. - The geographical advantage of Feiyan Steel Ball, located near Qingdao Port, would have facilitated easier access to Northeast Asia and European markets [3]. - Despite the termination of the acquisition, Lixing Co., Ltd. stated that it would not adversely affect its operational performance or financial status, and the company will continue to seek further development opportunities [3].