Core Viewpoint - Su Dawei Ge plans to acquire 51% of Changzhou Weipu Semiconductor Equipment Co., Ltd. for 510 million yuan, which will make Weipu a subsidiary and included in Su Dawei Ge's consolidated financial statements [1] Company Summary - Changzhou Weipu is recognized as a "little giant" enterprise in Jiangsu Province, focusing on the research, production, and sales of critical semiconductor front-end measurement equipment, particularly photomask defect detection and wafer defect detection equipment [3] - Weipu is one of the few companies in China that has achieved large-scale production in this high-end equipment sector, with self-developed technology, products, and core algorithms, and has a high degree of localization in core components [3] - The company has successfully integrated its products into the production lines of leading domestic wafer manufacturers and mask manufacturers, demonstrating strong market competitiveness [3] Financial Performance - For the period from January to October 2025, Weipu reported revenues exceeding 114 million yuan and a net profit exceeding 51 million yuan, with strong cash flow from operating activities of over 55 million yuan [4] - As of October 31, 2025, Weipu had an order backlog of approximately 250 million yuan and contract liabilities exceeding 100 million yuan, indicating robust market demand [4] - The company’s cash and bank wealth management total approximately 140 million yuan, with interest-bearing liabilities of only about 8 million yuan, reflecting a strong financial structure [4] - According to a profit forecast report, Weipu is expected to achieve annual revenues of 136.57 million yuan and a net profit attributable to the parent company of 60.58 million yuan in 2025 [4] Industry Context - The global market for semiconductor measurement equipment is substantial and continues to grow, with an estimated market size of approximately 12.8 billion USD in 2023, and the photomask defect detection equipment segment valued at around 1.81 billion USD [5] - The domestic market in China has become the largest semiconductor equipment market globally, yet the localization rate for measurement equipment remains below 5%, with photomask defect detection even lower than 3%, indicating a strong demand for domestic alternatives [5] Strategic Implications - Su Dawei Ge's main business includes the research and manufacturing of high-end laser direct-write lithography machines, which are essential for photomask production, facing similarly low localization rates [6] - The acquisition is expected to create significant synergies, particularly in customer resource alignment and technology development, enhancing the overall competitiveness of both companies [6] - The integration of technologies and market resources from both companies is anticipated to cultivate new profit growth points for Su Dawei Ge [6] - Weipu's founding shareholders have made performance commitments, ensuring that the net profit from 2025 to 2027 will not be less than 240 million yuan, which could positively impact Su Dawei Ge's financial results if achieved [6]