Core Viewpoint - The acquisition plan by GoerTek Inc. for the full ownership of Mia Precision Technology Co., Ltd. and Changhong Industrial Co., Ltd. has been terminated due to the inability to reach an agreement on key terms between the parties involved [2][3]. Group 1: Acquisition Details - GoerTek planned to acquire the two companies for approximately HKD 104 billion (around RMB 9.5 billion) using its own or raised funds [2]. - The two target companies are registered in Hong Kong and are wholly owned by Hong Kong Lianfeng. Mia was established in 2007 with a registered capital of HKD 500 million, focusing on investment holding and precision metal parts trading, while Changhong was founded in 2004 with a registered capital of HKD 50 million, also focusing on investment holding [3]. - The combined unaudited revenue for the two companies for the fiscal year 2024 is approximately HKD 91.1 billion [3]. Group 2: Strategic Implications - The acquisition was expected to enhance GoerTek's vertical integration capabilities and improve its competitive edge in the precision structural components sector [4]. - The termination of the acquisition will not adversely affect GoerTek's operational performance or financial status, nor will it harm the interests of the company and its shareholders [3]. - GoerTek reported a net profit attributable to shareholders of RMB 1.417 billion for the first half of 2025, representing a year-on-year increase of 15.65%, while its revenue was RMB 37.549 billion, showing a year-on-year decrease of 7.02% [4].

Core Viewpoint - The acquisition plan by GoerTek Inc. for the full ownership of Mia Precision Technology Co., Ltd. and Changhong Industrial Co., Ltd. has been terminated due to the inability to reach an agreement on key terms between the parties involved [1][2]. Group 1: Acquisition Details - GoerTek planned to acquire the two companies for approximately HKD 104 billion (around RMB 9.5 billion) [1]. - The two target companies are registered in Hong Kong and are wholly owned by Lianfeng Group [2]. - Mia was established in 2007 with a registered capital of HKD 500 million, focusing on investment holding and precision metal parts trading, while Changhong was founded in 2004 with a registered capital of HKD 50 million, also focusing on investment holding [2]. Group 2: Financial Impact - The termination of the acquisition will not adversely affect GoerTek's operational performance or financial status, and there are no damages to the interests of the company and its shareholders [2]. - The combined unaudited revenue of the two target companies for the fiscal year 2024 is approximately HKD 9.11 billion [2]. Group 3: Strategic Implications - The acquisition was intended to enhance GoerTek's vertical integration capabilities and strengthen its competitive position in the precision structural components sector [3]. - GoerTek's half-year report for 2025 indicated a net profit attributable to shareholders of RMB 1.417 billion, a year-on-year increase of 15.65%, while total revenue was RMB 37.549 billion, reflecting a year-on-year decrease of 7.02% [3].

Core Viewpoint - The acquisition plan by GoerTek, involving approximately HKD 104 billion (around RMB 95 billion) to purchase 100% equity of Hong Kong Mia Precision Technology and Changhong Industrial, marks a significant strategic move to enhance its capabilities in the precision metal components sector [1][4]. Group 1: Acquisition Details - GoerTek has reached a preliminary agreement with Hong Kong Lianfeng to acquire two wholly-owned subsidiaries, Hong Kong Mia and Changhong, which are registered in Hong Kong [1][4]. - The two target companies reported an estimated combined revenue of approximately HKD 91.1 billion for the fiscal year 2024 [4]. - The acquisition does not constitute a related party transaction and is not expected to be a major asset restructuring [2]. Group 2: Strategic Implications - The acquisition is seen as GoerTek's largest merger to date, indicating a shift in its acquisition strategy from a technology-centric approach to a focus on major clients [5]. - The move is expected to enhance GoerTek's vertical integration capabilities and strengthen its competitive position in the precision components market [4][5]. - GoerTek's existing precision components business accounted for 14.9% of its revenue in 2024, highlighting the importance of this sector to the company's overall strategy [6]. Group 3: Market Context - The global smartphone shipment is projected to reach approximately 1.24 billion units in 2024, reflecting a year-on-year growth of about 6.1%, which is expected to positively impact the precision components market [6]. - GoerTek's stock opened up by 1.64% on July 23, trading at RMB 24.20 per share, with a total market capitalization of around RMB 845 billion [6].

Core Viewpoint - The development of China's semiconductor industry is likened to "climbing Mount Everest," with precision components being crucial for the manufacturing and upgrading of semiconductor equipment, which has historically been a bottleneck for domestic companies [2] Group 1: Company Overview - Fuchuang Precision is a leading domestic manufacturer of precision components for semiconductor equipment, providing mechanical and electromechanical components, gas transmission systems, and covering multiple stages of chip manufacturing such as lithography, etching, film deposition, and coating development [2] - Fuchuang Precision is one of the few global suppliers capable of mass-producing precision components for 7nm process semiconductor equipment [2] Group 2: Business Focus Areas - The company focuses on three main areas: 1. Precision metal parts processing, starting from OEM, with 90% of metal components in the semiconductor field now being produced domestically [2] 2. Products like vacuum valve bodies, which have a low domestic production rate, with 90% currently relying on imports, indicating significant potential for domestic substitution [2] 3. Gas transmission systems, which represent a new growth curve for the company's performance [2] Group 3: Market Potential and Growth - The overall market for gas transmission systems and key component manufacturing has a low domestic production rate, with the market primarily dominated by a few large enterprises [3] - The gas transmission business is experiencing strong growth due to: 1. The absolute market size, with gas transmission systems accounting for approximately 7% to 8% of total semiconductor equipment sales [3] 2. High potential for domestic substitution, as the current import ratio in this field is significant [3] 3. The company's technical capabilities, as it participates in the design of new processes for major semiconductor equipment manufacturers [3]