Core Viewpoint - The company Xian Dao Electronic Technology Co., Ltd. (referred to as "Xian Dao Electric") is seeking acquisition opportunities shortly after terminating a previous merger attempt, indicating potential financial distress or strategic shifts in its business model [1][2][4]. Group 1: Acquisition Attempts - Xian Dao Electric has recently engaged in discussions with Chuzhou Development (600208.SH) to acquire shares from Guangdong Xian Dao Rare Materials Co., Ltd. and other shareholders, while also planning to raise supporting funds [1][2]. - Prior to this, Xian Dao Electric was involved in a failed acquisition attempt by Guangzhi Technology (300489.SZ), which was announced in October 2023 but terminated in June 2024 due to external environmental changes and unresolved terms [4][5]. Group 2: Financial Performance - The financial performance of Xian Dao Electric has shown a significant decline, with revenues dropping from 21.9 billion in 2022 to 15.9 billion in the first half of 2024, and net profits decreasing from 4.66 billion to 2.61 billion during the same period [8]. - The company's gross margin has also decreased, with figures reported at 21.28% in 2022, 14.27% in 2023, and 16.4% in the first half of 2024, indicating volatility in profitability [8]. Group 3: IPO and Regulatory Challenges - Xian Dao Electric has been undergoing IPO guidance for approximately 18 months, with the latest report submitted by Guo Xin Securities on July 9, 2024, highlighting unresolved issues related to related-party transactions [3][6]. - The prolonged IPO guidance period suggests potential issues with the company's financial health or regulatory compliance, which may have contributed to its urgency in seeking acquisition [3][6].

Core Viewpoint - The semiconductor materials company, Xian Dao Electronics Technology Co., Ltd. (Xian Dao Dian Ke), is urgently seeking acquisition despite recently submitting an IPO guidance report, indicating potential underlying issues affecting its financial stability and growth prospects [1][8]. Group 1: Acquisition Attempts - Xian Dao Dian Ke has recently engaged in acquisition discussions with Chuzhou Development (600208.SH) to purchase shares held by Guangdong Xian Dao Rare Materials Co., Ltd. and other shareholders [1]. - Prior to this, Xian Dao Dian Ke was involved in a failed acquisition attempt by Guangzhi Technology (300489.SZ), which was terminated due to external environmental changes and unresolved terms [1][4]. - The company has been in the IPO guidance phase for over a year and has submitted multiple reports, indicating prolonged challenges in meeting regulatory requirements [2][3]. Group 2: Financial Performance - Xian Dao Dian Ke's revenue has shown a significant decline, with reported figures of 21.9 billion, 28.8 billion, and 15.9 billion for the years 2022, 2023, and the first half of 2024, respectively [8]. - Net profits have also decreased from 4.66 billion in 2022 to 2.61 billion in the first half of 2024, alongside a declining gross margin from 21.28% to 16.4% during the same period [8]. - The company is facing challenges in expanding its product offerings in emerging fields, which may adversely affect its future growth [8]. Group 3: Regulatory and Operational Issues - The prolonged IPO guidance period suggests that Xian Dao Dian Ke may be struggling with unresolved issues related to related-party transactions, which are under scrutiny by regulatory bodies [2][3]. - The company has a complex ownership structure, with significant stakes held by related parties, complicating its acquisition and IPO processes [5][7]. - The urgency to sell may reflect a strategic pivot in response to declining financial performance and the need for capital infusion to stabilize operations [1][8].