Core Viewpoint - The company has decided to terminate the optical-grade sheet project due to changes in the downstream industry environment, reallocating approximately 154 million yuan of remaining raised funds to enhance liquidity and operational efficiency [1][2][3]. Group 1: Project Termination - The optical-grade sheet project, managed by Yancheng Wei Wang, was initiated in 2020 and had achieved a production capacity of approximately 30 million light guide plates per year and 6.5 million square meters of PMMA sheets and high-brightness diffusion plates [2]. - The decision to terminate the project is based on the shift in the display panel industry towards refined operations, leading to a misalignment between market expansion and initial project plans [2][4]. - The company aims to avoid inefficient capital allocation during the industry's downturn and improve resource utilization [2][3]. Group 2: Fund Reallocation - The remaining raised funds of approximately 154 million yuan will be permanently allocated to Yancheng Wei Wang's daily operations, covering essential areas such as raw material procurement, production line maintenance, market expansion, and employee salaries [3]. - This reallocation is expected to reduce financial costs, enhance market responsiveness, and improve product profitability [3]. Group 3: Strategic Shift - The termination of the optical-grade sheet project aligns with the company's strategic transition towards the semiconductor sector, focusing on high-end laser direct writing lithography machines and nano-imprint lithography machines [4][5]. - The company has approved a 510 million yuan acquisition of a 51% stake in Changzhou Weipu Semiconductor Equipment Co., which will help establish a complete industrial layout from mask manufacturing to detection equipment [4]. - The semiconductor equipment sector presents higher technical barriers, broader market potential, and stronger profitability, making it a key area for the company's high-quality development [4][5].

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]