Core Viewpoint - The termination of the acquisition of 100% of Xian Dao Electronics Technology Co., Ltd. by Guangzhi Technology Co., Ltd. marks a significant setback for the company, which had aimed to enhance its growth and profitability through this strategic move [1][3]. Group 1: Acquisition Details - Guangzhi Technology announced the termination of the acquisition after eight months of anticipation, citing prolonged restructuring planning, changes in the external environment, and failure to reach agreement on commercial terms with some counterparties [3]. - The acquisition was initially proposed in October 2024, with Guangzhi Technology planning to acquire Xian Dao Electronics, valued at 20 billion yuan, while its own market capitalization was only around 3 billion yuan [1][3]. - The acquisition was characterized as "snake swallowing an elephant" due to the significant disparity in valuations between the two companies [3]. Group 2: Business Synergy - Both companies operate along the industrial chain of "high-purity rare scattered elements - compound materials - precision devices," with Guangzhi Technology focusing on infrared materials and Xian Dao Electronics specializing in sputtering targets and evaporation materials [4][5]. - The strategic intent behind the acquisition was to enhance Guangzhi Technology's portfolio with higher growth and margin assets, aiming for deeper integration within the rare metal industry chain [6]. Group 3: Financial Performance - Guangzhi Technology has faced ongoing financial pressure, with its net profit excluding non-recurring items being negative for three consecutive years [6]. - In 2024, the company reported revenue of 1.455 billion yuan, a year-on-year increase of 43.82%, and a net profit of 12.26 million yuan, indicating a return to profitability, although the net profit excluding non-recurring items remained negative at -37.16 million yuan [6]. Group 4: Future Prospects - Following the termination of the acquisition, Guangzhi Technology stated that its production and operations would continue normally, and it would seek further development opportunities when conditions are favorable [7]. - Xian Dao Electronics, which had previously attempted an independent IPO, may now consider returning to the independent IPO path or seeking integration opportunities with other listed companies [7].

Core Viewpoint - The termination of the acquisition of Xian Dao Electronics Technology Co., Ltd. by Guangzhi Technology marks a significant setback for the company, which had aimed to enhance its growth and profitability through this strategic move [1][4][14]. Group 1: Acquisition Details - Guangzhi Technology announced the termination of its plan to acquire 100% of Xian Dao Electronics, which had an estimated valuation of 20 billion yuan, after eight months of anticipation [1][4]. - The acquisition was initially met with enthusiasm, leading to a stock price increase of over 100% from pre-announcement levels, peaking at 115.55 yuan [1]. - The reasons for termination included prolonged restructuring time, changes in the external environment, and failure to reach agreement on commercial terms with some counterparties [4][14]. Group 2: Financial Performance - Guangzhi Technology reported a revenue of 1.455 billion yuan in 2024, a year-on-year increase of 43.82%, but still faced challenges with a net profit of 12.26 million yuan and a non-recurring net profit of -37.16 million yuan [12][13]. - The company has struggled with negative non-recurring net profits for three consecutive years, indicating ongoing financial difficulties [11]. Group 3: Strategic Implications - The termination of the acquisition is seen as a major obstacle to Guangzhi Technology's strategic transformation, which aimed to integrate higher-margin assets and enhance its position in the rare metal industry [13][14]. - The failed acquisition also impacts Xian Dao Electronics' path to capital market entry, as it had previously attempted an independent IPO [15][16]. - Market analysts suggest that Xian Dao Electronics may now consider returning to an independent IPO route or seeking integration opportunities with other listed companies [17].

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].