Core Viewpoint - The article discusses the recent termination of a significant acquisition deal between Xinxiangwei and Aixiasheng, highlighting the challenges in the semiconductor industry regarding mergers and acquisitions, particularly in the context of rapid technological changes and competitive pressures [4][9][16]. Group 1: Company Overview - Xinxiangwei, established in 2005, specializes in the research, design, and sales of display chips, providing comprehensive solutions in the display chip sector [6]. - Aixiasheng, founded in 2011, focuses on chip design and solutions in the human-computer interaction field, and has received recognition as a national high-tech enterprise [12]. Group 2: Acquisition Attempt - Xinxiangwei planned to acquire 100% of Aixiasheng's shares through a combination of stock issuance, convertible bonds, and cash payments, but the deal was terminated due to a lack of consensus among the parties involved [4][9]. - The acquisition was viewed as a "snake swallowing an elephant" scenario, given Aixiasheng's projected revenues of 782 million yuan and 1.267 billion yuan for 2023 and 2024, respectively, compared to Xinxiangwei's revenues of 480 million yuan and 507 million yuan during the same period [8][9]. Group 3: Financial Performance - Xinxiangwei's revenue for 2024 was 507 million yuan, reflecting a year-on-year growth of 5.61%, but its net profit dropped significantly by 69.41% to 8.4231 million yuan, indicating a pressing need to enhance profitability amid fierce market competition [9]. - In the first quarter of 2025, Xinxiangwei reported a revenue of 150 million yuan, a substantial increase of 49.95% year-on-year, and achieved a net profit of 218.51 thousand yuan, marking a return to profitability [9]. Group 4: Industry Context - The semiconductor industry has seen a surge in merger and acquisition activities, particularly following the release of new regulatory policies aimed at supporting strategic acquisitions in emerging industries [15]. - Despite favorable policies, the semiconductor sector faces significant challenges in executing mergers due to rapid technological advancements and complex negotiations regarding valuations and terms [16].

Core Viewpoint - The company has decided to terminate the acquisition of 100% equity in Shenzhen Aixiangsheng Technology Co., Ltd. due to a lack of consensus among the transaction parties regarding the final plan [2] Group 1: Termination of Acquisition - On August 9, the company announced the termination of the issuance of shares, convertible bonds, and cash payment for asset acquisition, along with the related fundraising [2] - The management has been authorized to handle the termination of this transaction [2] - The initial plan involved acquiring 100% equity of Aixiangsheng and raising funds from no more than 35 specific investors [2] Group 2: Reasons for Termination - The termination was prompted by the inability of the transaction parties to reach an agreement on the final plan [2] - The company emphasized the need to protect the interests of the company and all shareholders [2] - A thorough review and negotiation with the transaction parties led to the decision to terminate the acquisition [2] Group 3: Background on Aixiangsheng - Aixiangsheng is primarily engaged in the research, design, and sales of various chip products, including display driver chips and touch control driver chips [2] - The company previously believed that this major asset restructuring would enhance domestic substitution trends, strengthen the supply chain, and improve key technological capabilities for high-quality development [2]

Core Viewpoint - The company Xidiwei (688173.SH) faces potential loss of control over its subsidiary Zinitix due to alleged misconduct by current directors, which could significantly impact its financial performance and reporting [1][4]. Group 1: Acquisition and Control Issues - Xidiwei acquired a 35.31% stake in Zinitix for approximately 1.12 million RMB in August 2024, forming a goodwill of 0.64 million RMB [2][5]. - The company has initiated legal actions against Zinitix's current directors for alleged theft of trade secrets and other misconduct, while facing resistance in convening a shareholder meeting to elect new directors [4][6]. - If Xidiwei loses control over Zinitix, it will cease to consolidate Zinitix in its financial statements, leading to a potential significant adverse impact on its 2025 financial results [4]. Group 2: Financial Performance and Challenges - Xidiwei has reported cumulative losses of approximately 3.6 million RMB over the past three years, with continued losses expected in Q1 2025 [1][8]. - Despite the losses, the chairman's salary has increased significantly, from approximately 1.6 million RMB in 2021 to over 2.2 million RMB in subsequent years [8]. - The company has been actively pursuing acquisitions to turn around its performance, including a recent announcement to acquire Chengxin Micro for a premium of 214.37% [8]. Group 3: Research and Development Investment - Xidiwei has consistently increased its R&D investment from 1.5 million RMB in 2021 to 2.53 million RMB in 2024, with R&D expenses accounting for 46.34% of its revenue in 2024 [9].