Core Viewpoint - The acquisition of a controlling stake in Tian Kuan Technology by Qunxing Toys has been terminated due to failure to reach agreement on key terms, leading to a significant drop in the company's stock price [1][3][11]. Summary by Sections Acquisition Termination - Qunxing Toys announced on October 20 that it would terminate the planned acquisition of at least 51% of Tian Kuan Technology due to disagreements on transaction price and terms [1][11]. - Following the announcement, Qunxing Toys' stock hit the daily limit down, reflecting investor disappointment with the halted strategic move [3][11]. Market Reaction - On October 21, Qunxing Toys opened at a limit down price of 6.35, closing with a market capitalization of 3.915 billion [3][4]. - The stock experienced a significant sell-off, with over 130,000 shares on the limit down board, indicating strong negative sentiment from investors [3][4]. Historical Context - The acquisition was part of a strategic shift for Qunxing Toys, which had been planning to enter the AI computing sector through this deal, leveraging Tian Kuan Technology's capabilities [6][15]. - The company had been pursuing this acquisition for eight months, with multiple updates indicating progress until the abrupt termination [7][11]. Company Background - Qunxing Toys has a history of frequent changes in control and strategic direction, transitioning from traditional toy manufacturing to various sectors including nuclear power and AI computing [14][15]. - The company has been under the leadership of Chairman Zhang Jincheng since late 2020, who has been pivotal in its strategic reforms and attempts to stabilize the company [14][15]. Financial Performance - In the first half of 2025, Qunxing Toys reported revenue of 176 million, a year-on-year increase of 38.4%, but also recorded a net loss of 17.06 million, indicating challenges in profitability despite revenue growth [15].