Core Viewpoint - The acquisition of Shanghai Wodian by Bozhong Precision Engineering represents a strategic move for 3C electronics companies to enter the automotive industry, overcoming barriers such as automotive-grade certification and customer validation [1][2][3] Group 1: Acquisition Details - Bozhong Precision Engineering plans to acquire 70% of Shanghai Wodian for 420 million yuan, integrating it into its operations [1] - Shanghai Wodian specializes in intelligent automation solutions for the automotive sector and has established partnerships with major automotive brands [2][3] - The acquisition is seen as a way for Bozhong to quickly expand its automotive business, leveraging Shanghai Wodian's existing customer base and technological expertise [3] Group 2: Financial Commitments - The performance commitment for the acquisition spans from 2025 to 2027, with a net profit target of at least 185 million yuan for Shanghai Wodian [5] - The valuation of Shanghai Wodian is set at 600 million yuan, with a significant goodwill component expected post-acquisition [5] - Shanghai Wodian's projected revenues for 2023 and 2024 are 236.5 million yuan and 248.7 million yuan, respectively, with net profits of 31.73 million yuan and 38.57 million yuan [5] Group 3: Industry Context - Bozhong's move to acquire Shanghai Wodian is part of a broader trend among 3C electronics companies seeking growth opportunities in the automotive sector due to stagnation in their traditional markets [6][8] - The first quarter of 2024 saw Bozhong's revenue at 737 million yuan, reflecting a 0.8% decline year-on-year, highlighting the urgency for diversification [6][7] - Other 3C companies are also pursuing similar strategies, indicating a collective industry shift towards automotive supply chains [8]