Core Viewpoint - The company, Ternua (探路者), is advancing its cross-industry transformation by announcing a total acquisition plan of 678 million yuan, targeting two companies in the chip sector to enhance its existing chip business and create a more robust industry layout [1][3][6] Group 1: Acquisition Details - Ternua plans to acquire 51% stakes in Shenzhen Better Life Electronics Technology Co., Ltd. for 321.3 million yuan and Shanghai Tongtu Semiconductor Technology Co., Ltd. for 357 million yuan, which will become subsidiaries included in the consolidated financial statements [1][3] - The acquisitions focus on different segments within the chip industry, with Better Life specializing in mixed-signal chain chips and Tongtu in IP technology licensing and chip design [3] Group 2: Financial Metrics - The valuation reports indicate significant appreciation rates for the target companies, with Better Life's valuation increasing by 363.26% and Tongtu's by 2119.65% [3] - Better Life reported a net profit of approximately 17.73 million yuan for the first eight months of 2025, marking a turnaround from losses, while Tongtu's net profit for the same period was about 18.89 million yuan, showing substantial year-on-year growth [3] Group 3: Performance Commitments - The acquisition agreements include performance commitments, requiring the target companies to achieve specific net profit targets for the years 2026 to 2028, with penalties for underperformance [4][5] - Better Life's committed net profits are set at 33.7 million yuan, 47.7 million yuan, and 68.6 million yuan for the respective years, while Tongtu's cumulative commitment is 150 million yuan over the same period [4][5] Group 4: Strategic Context - Ternua, established in 1999 and known as a leading brand in China's outdoor products market, is undergoing a strategic transformation to diversify its business by integrating outdoor and chip sectors [5][6] - The company's aggressive transformation is a response to declining growth in its core outdoor business, as evidenced by a 13.98% year-on-year drop in revenue and a 67.53% decline in net profit for the first three quarters of 2025 [5]