Group 1 - The core point of the article is that Guangzhi Technology has decided to terminate the acquisition of 100% of Xian Dao Electronics Technology Co., Ltd. and the related fundraising, which has attracted significant market attention due to the scale of the acquisition [1][2] - Guangzhi Technology's stock price experienced a significant increase, reaching a peak of 115.55 CNY per share in October 2023, with an overall increase of over 100% since the announcement of the restructuring plan in September 2023 [2] - The termination of the acquisition was attributed to changes in the external environment and disagreements on certain commercial terms with some transaction parties, leading the company to prioritize the long-term interests of its shareholders [2] Group 2 - Guangzhi Technology reported a revenue of 1.455 billion CNY in 2024, representing a year-on-year growth of 43.82%, while the net profit attributable to shareholders was 12.26 million CNY, marking a return to profitability [3] - The company has faced challenges in recent years, with non-recurring net profits being negative for three consecutive years, indicating ongoing operational difficulties [3] - Future plans include becoming a leading provider of comprehensive infrared solutions in China, focusing on extending the industrial chain and expanding market share in mature material products [3]

Core Viewpoint - The acquisition of Xian Dao Electric Science by Guangzhi Technology has been terminated due to disagreements on certain commercial terms, marking the end of a highly anticipated merger in the market [1][12][16]. Group 1: Acquisition Details - Guangzhi Technology announced plans to acquire a 100% stake in Xian Dao Electric Science, which was valued at 20 billion yuan, while Guangzhi's market capitalization was only around 3 billion yuan [13]. - The acquisition was initially seen as a significant move following the implementation of new merger regulations by the China Securities Regulatory Commission [13]. - The deal faced challenges, including delays in auditing and due diligence, which were cited as reasons for the termination [14][16]. Group 2: Market Reaction - Following the announcement of the acquisition plan, Guangzhi Technology's stock price surged over 100%, reaching a peak of 115.55 yuan per share [17][18]. - As of June 27, 2025, the stock price settled at 47.28 yuan, giving the company a market capitalization of approximately 6.5 billion yuan [18]. Group 3: Financial Performance - Guangzhi Technology reported a revenue of 1.455 billion yuan in 2024, a year-on-year increase of 43.82% [20]. - The company achieved a net profit of 12.26 million yuan, marking a turnaround from previous losses, although the net profit excluding non-recurring items remained negative at -37.16 million yuan [20]. - The total assets of the company increased by 21.93% year-on-year, reaching approximately 4.069 billion yuan by the end of 2024 [21].

Core Viewpoint - The acquisition attempt by Guangzhi Technology to purchase 100% of XianDao Electronics has been officially terminated due to disagreements on certain commercial terms, marking the end of a highly anticipated merger [1][2][15]. Group 1: Acquisition Details - Guangzhi Technology announced the termination of the acquisition on June 27, 2025, after a prolonged negotiation period [1][17]. - The acquisition was initially seen as a significant move, with Guangzhi's market value at over 3 billion yuan and XianDao's valuation at approximately 20 billion yuan, representing a "snake swallowing an elephant" scenario [16]. - The merger was intended to enhance Guangzhi's business scope and upgrade its main operations, aligning with both companies' focus on high-purity rare earth elements and related materials [14][21]. Group 2: Market Reaction and Financial Performance - Following the announcement of the merger plan, Guangzhi Technology's stock price surged over 100%, reaching a peak of 115.55 yuan per share in October 2024 [19]. - As of June 27, 2025, the stock price settled at 47.28 yuan, with a total market capitalization of approximately 6.5 billion yuan [19]. - The company has faced financial challenges, with a net profit of 12.26 million yuan in 2024, recovering from previous losses, but still reporting a negative net profit of 37.16 million yuan when excluding non-recurring items [20].