Core Viewpoint - Lion Technology Development Co., Ltd. (Lion Technology) plans to acquire 97.4399% of Hangzhou Lipo Technology Co., Ltd. (Lipo Technology) for 662 million yuan, aiming to enhance its capabilities in the machine vision and AI sectors, which are expected to grow significantly in the coming years [1][3]. Group 1: Acquisition Details - The total valuation of Lipo Technology is approximately 679.8 million yuan, with the acquisition price set at 662 million yuan for the 97.4399% stake [3][5]. - The payment structure includes 465 million yuan in shares and 198 million yuan in cash, with additional fundraising of 240 million yuan through share issuance to the controlling shareholders [3][5]. - The controlling shareholders will purchase shares at a price of 6.69 yuan per share, indicating a higher price point for their investment [3]. Group 2: Financial Projections and Commitments - Lipo Technology has committed to achieving a cumulative net profit of no less than 141 million yuan over the next three years, averaging 47 million yuan annually, which corresponds to a price-to-earnings ratio of less than 15 times [1][5]. - The projected revenue for Lipo Technology in 2024 is expected to exceed 400 million yuan, reflecting a nearly 30% year-on-year growth, with a net profit of approximately 33.15 million yuan, a 37.61% increase [4][5]. - The management team of Lipo Technology will receive additional incentives if the company exceeds its profit commitments, with 40% of the excess profits allocated as rewards [5]. Group 3: Market Position and Growth Potential - Lipo Technology, founded by a team from Zhejiang University, specializes in machine vision solutions and has established a strong brand presence with high customer loyalty [2]. - The company has successfully implemented its products in various industries, including semiconductors and new energy, and is positioned to benefit from the growing demand for machine vision solutions as manufacturing shifts towards high-end sectors in China [2]. - The industrial machine vision market in China is projected to grow from approximately 26.83 billion yuan in 2024 to 63.01 billion yuan by 2029, indicating significant growth potential for companies in this sector [2].