Core Viewpoint - Greenway Technology plans to acquire 51% of Jiangsu Damo Semiconductor Technology Co., Ltd. for a total consideration of 530.4 million yuan, indicating a strategic move to expand its footprint in the semiconductor equipment sector [2][4]. Group 1: Company Overview - Greenway Technology operates in the non-road leisure vehicle and parts manufacturing industry and was listed on the Shenzhen Stock Exchange on March 6, 2023. Its main products include electric sightseeing cars, golf carts, electric patrol vehicles, and electric trucks [4]. - Jiangsu Damo, established in April 2017, is a supplier of semiconductor front-end measurement equipment solutions, headquartered in Nanjing with a registered capital of 21.62162 million yuan. The legal representative is Qiao Xiaodan [4]. Group 2: Product and Technology - Jiangsu Damo's equipment and technical services cover key categories such as critical dimension scanning electron microscopes, bright field defect detection equipment, dark field defect detection equipment, particle counters, film thickness gauges, etching machines, and defect analysis scanning electron microscopes. These are suitable for 6 to 12-inch wafer production lines and can support process technology down to 14nm. Some self-developed equipment has entered the customer validation stage [4].

Core Viewpoint - The company reported mixed financial results for 2024 and Q1 2025, with a notable increase in revenue for Q1 2025 but significant losses in 2024, particularly in net profit and non-recurring net profit [1][2]. Financial Performance - In 2024, the company achieved revenue of 2.565 billion, a year-on-year increase of 5.59%, but reported a net loss of 98 million, a decrease of 165.02% year-on-year. The non-recurring net profit was a loss of 159 million, down 582.26% year-on-year [1]. - For Q1 2025, the company reported revenue of 689 million, a year-on-year increase of 64.92%, and a net profit of 38 million, marking a return to profitability [1]. Segment Performance - In 2024, the display business generated revenue of 1.591 billion, a decrease of 8.98% year-on-year; the semiconductor business saw revenue of 768 million, an increase of 94.65%; and the new energy business reported revenue of 167 million, down 30.71% [2]. - For Q1 2025, the display business revenue was 382 million, up 42.46%; the semiconductor business revenue was 212 million, up 63.71%; and the new energy business revenue surged to 78 million, a year-on-year increase of 429.71% [2]. Profitability and Cost Structure - The overall gross margin for 2024 was 39.97%, a decrease of 8.98 percentage points, with a net margin of -8.69%, down 12.37 percentage points [3]. - The gross margin for the display business was 38.36%, down 11.36 percentage points; for the semiconductor business, it was 45.75%, down 7.08 percentage points; and for the new energy business, it was 30.81%, down 4.74 percentage points [3]. - The company’s R&D expenses increased by 13.03% year-on-year to 724 million, reflecting a commitment to innovation despite the financial losses [3]. Strategic Initiatives - The company is increasing its focus on advanced process technologies, particularly in the 14nm and below categories, with successful deliveries of key products [4]. - The strategic investment in Hubei Xingchen aims to deepen partnerships with core customers and enhance capabilities in advanced packaging technology [5]. Future Outlook - Revenue projections for 2025-2027 are estimated at 3.458 billion, 4.587 billion, and 5.946 billion, with expected net profits of 249 million, 393 million, and 559 million respectively, indicating a positive growth trajectory [5].