Core Viewpoint - The acquisition of Huayi Microelectronics by Huati Technology marks a significant move in the context of tightened IPO regulations, reflecting a shift in exit strategies for venture capital institutions [1][12]. Group 1: Acquisition Details - Huati Technology plans to acquire 100% of Huayi Microelectronics for an estimated valuation of 4.8 billion yuan through a combination of share issuance and cash payment [1]. - This acquisition is the largest merger in the private sector in Shaanxi province this year, highlighting the trend of "intra-group integration" as both companies share common ownership [1][12]. - Huayi Microelectronics, a subsidiary of Huati Technology's controlling shareholder, has rapidly developed in the semiconductor industry, ranking 13th among Chinese semiconductor power device companies in 2022 [1][3]. Group 2: Financial Performance - Huayi Microelectronics achieved revenues of 8.4 billion yuan in 2020, peaking at 11.6 billion yuan in 2021, but saw a slight decline to 11.5 billion yuan in 2022, with a net loss of 432 million yuan [3][4]. - The company is expected to recover, with projected net profits exceeding 30 million yuan in Q3 2024, reflecting an over 80% quarter-on-quarter growth [4]. Group 3: Market Context - The tightening of IPO regulations has led to a significant decrease in the number of IPOs in China, with only 313 companies listed in 2023, down from 524 in 2021, and further expected to drop to 100 in 2024 [12]. - This environment has made mergers and acquisitions a crucial pathway for industry consolidation and capital exit, particularly for technology firms like Huayi Microelectronics that are unable to go public [12][18]. Group 4: Investment and Financing - Huayi Microelectronics has completed three rounds of financing prior to its IPO attempt, with notable investors including Xiaomi Industrial Fund, raising a total of 8.644 billion yuan [6][8]. - The acquisition provides an exit route for the 27 institutional shareholders of Huayi Microelectronics, addressing the pressure for returns as many funds approach their exit deadlines [9][18].

Group 1 - Huatian Technology is planning to acquire Huayi Microelectronics, a subsidiary of its controlling shareholder, Tianshui Huatian Electronics Group [1][2] - The acquisition is expected to involve issuing shares and cash payments, along with raising supporting funds, and is classified as a related party transaction [1] - Huatian Technology's stock will be suspended from trading starting September 25, 2025, with a transaction plan to be disclosed within 10 trading days [1] Group 2 - Huayi Microelectronics had a failed IPO attempt in June 2023, which was terminated due to a lack of response to initial inquiries from the Shanghai Stock Exchange [2][4] - The company specializes in the research, production, and sales of semiconductor power devices, and has a dual-driven business strategy of design and packaging testing [4] - Financial data from 2020 to 2022 shows Huayi Microelectronics' revenue was 847 million yuan, 1.16 billion yuan, and 1.16 billion yuan, with net profits of 41.63 million yuan, 88.13 million yuan, and a loss of 43.21 million yuan respectively [4][5] Group 3 - Huatian Technology, established in December 2003 and listed in November 2007, primarily engages in integrated circuit packaging and testing, with over 99% of its revenue coming from this segment [5][6] - From 2021 to 2024, Huatian Technology's revenue grew from 12.1 billion yuan to 14.46 billion yuan, while net profit declined from 1.416 billion yuan to 616 million yuan [6][7] - The company's financial performance heavily relies on government subsidies and tax incentives, with significant amounts reported in recent financial statements [8][9] Group 4 - As of September 24, 2025, Huatian Technology's stock price was 11.78 yuan per share, giving it a market capitalization of approximately 38 billion yuan [10] - The company has over 400,000 shareholders as of June 30, 2025 [12]