Core Viewpoint - The outdoor products leader, Explorer (300005.SZ), unexpectedly saw its stock price drop significantly after announcing a plan to acquire two chip companies for 678 million yuan, raising concerns about high premiums and the company's financial health [1][3][8]. Acquisition Details - Explorer plans to invest a total of 678 million yuan to acquire 51% stakes in two chip companies: Shenzhen Better Life Electronics Technology Co., Ltd. and Shanghai Tongtu Semiconductor Technology Co., Ltd. [3][5]. - The acquisition involves high premiums, with Better Life's valuation at approximately 651 million yuan, reflecting a 363.26% increase over its net asset value, and Tongtu's valuation at 703 million yuan, showing a 2119.65% increase [7]. Financial Performance - Explorer's revenue for the first three quarters of 2025 was 953 million yuan, a year-on-year decline of 13.98%, while its net profit dropped by nearly 68% to 33.03 million yuan [4][12]. - The company's outdoor business has been under pressure due to market conditions, leading to disappointing sales [4][12]. Market Reaction - Following the acquisition announcement, Explorer's stock opened slightly higher but quickly turned to a decline, ultimately closing down 12.07% on December 2 [2][8]. Future Outlook - The two acquired companies are expected to achieve a combined net profit of no less than 300 million yuan over the next three years, with performance commitments in place [4][13]. - The success of this acquisition in helping Explorer overcome its current operational challenges remains uncertain [9][14].