Group 1 - Yangjie Technology announced the termination of the cash acquisition of 100% equity in Dongguan Better Electronics Technology Co., Ltd. due to a proposal from Better Electronics' actual controller and major shareholders [2][3] - The decision to terminate the acquisition was approved by the company's board of directors and supervisory board after reviewing the matter [2] - The termination was attributed to differences in business types, management styles, and corporate cultures between the two companies, leading to significant disagreements on future operational philosophies [2] Group 2 - Dongguan Better Electronics Technology Co., Ltd. specializes in the research, production, and sales of power electronic protection components, established on August 25, 2003 [4] - The company’s main products include overcurrent protection components and over-temperature protection components, with applications in various fields such as consumer electronics, home appliances, new energy vehicles, photovoltaic power generation, energy storage, and rail transportation [4] - Better Electronics is recognized as a leader in the domestic industry, focusing on high-end electronic and power circuit protection components, and has achieved multiple management system certifications [4]

Core Viewpoint - Yangjie Technology has decided to terminate the plan to acquire 100% of Bet Electronics through share issuance and cash payment, opting to explore a cash-only acquisition instead due to difficulties in reaching consensus among Bet Electronics' numerous shareholders [1][4][5]. Group 1: Acquisition Details - Yangjie Technology announced on July 3 that it would no longer pursue the share issuance and cash payment method for acquiring Bet Electronics, citing the complexity and length of the process as a reason for the change [1][4]. - The company expressed optimism about the acquisition, indicating that it aligns with their initial expectations and that they will continue to negotiate a cash acquisition [1][2]. - Bet Electronics has a diverse shareholder base, which has made it challenging to achieve agreement among them, leading to the decision to consider a cash acquisition [1][4]. Group 2: Background on Bet Electronics - Bet Electronics specializes in power electronic protection components, focusing on overcurrent and over-temperature protection, which overlaps with Yangjie Technology's product offerings [2]. - The company previously attempted to go public but withdrew its IPO application in August 2024, facing scrutiny from the exchange regarding potential "patchwork listing" issues [3][4]. - Bet Electronics' production capacity utilization rates for its main products have significantly declined from 2021 to 2023, with overcurrent protection components dropping from 96.08% to 81.75% and over-temperature protection components from 93.53% to 48.17% [2][3]. Group 3: Future Considerations - Yangjie Technology plans to negotiate the cash acquisition terms and will present the finalized agreement to its board for approval once consensus is reached [4][5]. - The decision to shift to a cash acquisition is aimed at maintaining company and investor interests, improving transaction efficiency, and reducing costs amid changing capital market conditions [5].