Core Viewpoint - Goer Group plans to acquire 100% equity of two wholly-owned subsidiaries of Hong Kong Lianfeng Commercial Group for approximately HKD 10.4 billion (RMB 9.5 billion), marking a record in the company's acquisition history and a significant step towards transforming into a system-level supplier in the "fruit chain" [2] Strategic Intent: Filling Gaps in Precision Components and Deepening Vertical Integration - The acquisition targets key segments of the supply chain, with the two companies generating a combined revenue of approximately HKD 9.11 billion for the fiscal year 2024 (unaudited). Both Mia Precision Technology and Changhong Industrial are well-known manufacturers of metal precision components and cutting tools, holding a strong market position in South China and Europe/America, particularly as suppliers for Apple Watch cases and bands [3] - Goer Group's existing precision component business has achieved a revenue scale of RMB 15.051 billion for 2024. This acquisition is expected to enhance the scale and profitability of Goer Group's precision component business while reducing reliance on major clients [3] Industry Transformation: Transition from Component Supplier to System Integrator - A deeper transformation involves the restructuring of the company's position in the supply chain. With AI technology driving the lightweight and integrated development of smart hardware, leading clients like Apple are accelerating supply chain consolidation. Through this acquisition, Goer Group aims to upgrade from a single module supplier to a "subsystem integrator," further solidifying its position as a core supplier for Apple [4] - The market reacted positively, with Goer Group's stock price rising by 3.39% on the day of the announcement. Analysts suggest that this acquisition will strengthen Goer Group's influence in the precision component sector, paving the way for securing iPhone assembly orders and expanding into new businesses like smart home network cameras [4] Risks and Challenges: Integration Effectiveness and Intensifying Industry Competition - Despite the promising outlook, Goer Group faces multiple challenges. The revenue scale of the target companies at HKD 9.11 billion is substantial, but the ability to achieve deep synergy in technology, clients, and supply chains with Goer Group's existing operations remains to be validated [5] - Additionally, the consumer electronics industry is characterized by rapid technological iteration, with increasing competition in areas such as titanium alloy processing and nano-coating. Goer Group will need to continue investing in R&D to maintain its competitive edge [5] Conclusion - Behind this billion-dollar acquisition, Goer Group is leveraging precision components as a pivot to transition from a "fruit chain component supplier" to a "global smart hardware system-level supplier." The success or failure of this strategy will not only impact the company's future but also reshape the competitive landscape of the consumer electronics industry [6]