Core Viewpoint - The company, Lvtong Technology, is expanding into the semiconductor equipment sector through the acquisition of a 46.92% stake in Jiangsu Damo Semiconductor Technology Co., Ltd. for 450 million yuan, along with an additional investment of 80 million yuan, totaling 530 million yuan for a 51% ownership stake [4][5]. Group 1: Acquisition Details - The acquisition aims to diversify Lvtong Technology's business from its current focus on electric vehicles to the semiconductor field, which aligns with the company's long-term strategic planning [4][7]. - Damo Semiconductor, established in 2017, specializes in semiconductor front-end measurement equipment solutions, with a market share of approximately 13% in the semiconductor equipment market [4][5]. - Damo Semiconductor has existing relationships with major clients such as SMIC, TSMC, and Global Foundries, indicating a strong market position [4][5]. Group 2: Financial Performance - Damo Semiconductor is projected to achieve profitability in the fiscal year 2024, with expected revenues of 278 million yuan and a net profit of 64.93 million yuan [5]. - The company has a net asset value of 225 million yuan as of March 31, 2025, and the equity value assessment for Damo Semiconductor is 964 million yuan, reflecting a value increase of over 300% [5]. - Performance commitments for Damo Semiconductor include net profits of no less than 70 million yuan, 80 million yuan, and 90 million yuan for the fiscal years 2025, 2026, and 2027, respectively, with a cumulative profit target of at least 240 million yuan over three years [5]. Group 3: Strategic Context - Lvtong Technology has been facing declining performance in its core electric vehicle business, with net profits dropping by 15.64% and 45.98% in 2023 and 2024, respectively [7]. - The company is actively seeking opportunities for external growth through investments and acquisitions to explore new strategic industries and foster new revenue growth points [8]. - The acquisition is funded by excess proceeds from Lvtong Technology's IPO, which raised a net amount of 2.101 billion yuan, with excess funds totaling 1.696 billion yuan [8].

Core Viewpoint - Zhuohai Technology Co., Ltd. has submitted an IPO prospectus to the Beijing Stock Exchange, aiming to capitalize on the growing semiconductor front-end measurement equipment market, which is projected to reach 12.77 billion yuan by 2027, with a compound annual growth rate (CAGR) of 26.69% [1][3]. Company Overview - Established in 2009 and headquartered in Wuxi, Jiangsu Province, Zhuohai Technology specializes in the research, repair, and sales of semiconductor front-end measurement equipment, recognized as a national-level specialized and innovative "little giant" enterprise [1]. - The company focuses on critical measurement and defect detection for semiconductor manufacturing equipment, which constitutes approximately 13% of the semiconductor equipment market [1]. Market Dynamics - The front-end measurement and repair equipment market in mainland China grew from 1.48 billion yuan in 2019 to 4.98 billion yuan in 2023, with a CAGR of 35.44% [1]. - The introduction of the "wafer origin" policy in China is expected to accelerate the domestic substitution process in the semiconductor industry [5]. Competitive Landscape - Currently, domestic self-developed brands hold only about 5% of the new equipment market, which is dominated by international giants such as KLA, AMAT, and Hitachi [5]. - Zhuohai Technology's market share in the repair equipment sector has increased from 2.07% in 2018 to 7.39% in 2023, ranking third globally [5]. Financial Performance - Zhuohai Technology's revenue for 2022, 2023, and 2024 was 314 million yuan, 381 million yuan, and 465 million yuan, respectively, with net profits of 119 million yuan, 132 million yuan, and 104 million yuan [8]. - The gross profit margin for the main business decreased from 60.58% in 2022 to 46.56% in 2024, primarily due to the semiconductor cycle impacting profit margins [8]. Revenue Breakdown - In 2024, revenue from repair equipment accounted for 92.24% of total revenue, with a year-on-year growth of 22.3% and a gross margin of 46.49% [9][10]. - Self-developed equipment generated 12 million yuan in revenue, representing 2.62% of total revenue, while component sales accounted for approximately 3.39% [10][11]. R&D and Challenges - Zhuohai Technology's R&D expenses as a percentage of revenue were 4.81%, 7.46%, and 7.25% from 2022 to 2024, significantly lower than peers like Zhongke Feimeng and Jingce Electronics [12]. - The reliance on international retired equipment for repair services poses risks, as procurement costs have risen, leading to a 14.01% decline in gross margin for some equipment models in 2024 [12].