Core Viewpoint - Jiemai Technology completed the acquisition of Jiangxi Hongmei New Energy Technology Co., Ltd. in less than 10 days, indicating a rapid strategic move to enhance its production capacity and avoid potential competition in the industry [1] Group 1: Acquisition Details - The acquisition involved Jiemai Technology's subsidiary, Zhejiang Rouzhen Technology Co., Ltd., purchasing 100% of Jiangxi Hongmei's shares, which were previously held by Zhejiang Yuanlong Equity Investment Management Group Co., Ltd. and Anji Hongmei Venture Capital Partnership [1] - Jiangxi Hongmei has been renamed Jiangxi Rouzhen Technology Co., Ltd. and its business scope has expanded to include high-performance fiber and composite materials manufacturing, which were not part of its previous operations [1][2] Group 2: Company Background - Jiangxi Hongmei was established in November 2022 with a registered capital of 50 million yuan, focusing on the research and production of flexible composite materials and thermal management materials [2] - The company has obtained 3 authorized invention patents and has 17 pending patent applications, indicating a strong focus on innovation in new materials for industries such as photovoltaics and 6G electronic information [2] Group 3: Strategic Implications - The acquisition is aimed at integrating quality resources to accelerate the production capacity expansion of Rouzhen Technology, particularly in composite fluid products like composite aluminum foil and high-end ultra-thin copper foil [3] - The existing production lines of Jiangxi Hongmei will be modified for immediate use, facilitating the integration of related businesses, assets, and personnel, which is expected to positively impact the overall profitability and operational performance of Rouzhen Technology [3]

Investment Rating - The investment rating for the company is "Buy" [5]. Core Views - The acquisition of 100% equity in Jiangxi Hongmei by Zhejiang Rouzhen Technology is aimed at accelerating the capacity expansion and business layout of composite flow materials [2]. - The transaction is expected to enhance the integration of quality resources, promote rapid development, and improve profitability for the subsidiary Rouzhen Technology [2]. - The company maintains its revenue and profit forecasts for 2025-2027, expecting revenues of RMB 21.86 billion, 28.90 billion, and 36.41 billion, with net profits of RMB 2.87 billion, 4.60 billion, and 7.01 billion respectively [3]. Financial Summary - The projected revenues for 2025-2027 are RMB 21.86 billion, 28.90 billion, and 36.41 billion, reflecting year-on-year growth rates of 20.3%, 32.2%, and 26.0% respectively [3][8]. - The expected net profits for the same period are RMB 2.87 billion, 4.60 billion, and 7.01 billion, with year-on-year growth rates of 42.1%, 60.1%, and 52.4% [3][8]. - The earnings per share (EPS) are projected to be RMB 0.67, 1.07, and 1.63 for 2025, 2026, and 2027 respectively [3][8]. - The company’s stock price as of August 18, 2025, is RMB 27.67, with corresponding price-to-earnings (PE) ratios of 41.51x, 25.93x, and 17.02x for the years 2025, 2026, and 2027 [3][10].

Core Viewpoint - The acquisition of a 100% stake in Jiangxi Hongmei New Energy Technology Co., Ltd. by Zhejiang Jiemai Electronic Technology Co., Ltd.'s subsidiary, Zhejiang Rouzhen Technology Co., Ltd., is aimed at enhancing resource integration and accelerating production capacity expansion in the polymer composite film materials sector, which is crucial for lithium-ion batteries [1][2][3] Group 1: Acquisition Details - Zhejiang Rouzhen Technology plans to acquire a 72% stake in Jiangxi Hongmei from Zhejiang Yuanlong and a 28% stake from Anji Hongmei for a total consideration of RMB 26.2824 million, matching the assessed book value of Jiangxi Hongmei's equity [1] - Following the acquisition, Rouzhen Technology will hold 100% of Jiangxi Hongmei, which specializes in manufacturing new film materials and electronic materials, primarily used in photovoltaic, new energy, and 6G electronic information industries [1] Group 2: Strategic Implications - The acquisition is part of Jiemai Technology's strategy to enhance the production capacity of Rouzhen Technology, focusing on composite current collector products such as composite aluminum foil and copper foil, which are essential for energy density and safety in lithium-ion batteries [2] - The integration of Jiangxi Hongmei's production lines will facilitate the deep collaboration of Rouzhen Technology's related businesses, leading to improved operational efficiency and profitability [2][3] Group 3: Expert Insights - The acquisition is viewed as a market-driven approach to optimize resource allocation, mitigate potential competition and related party transaction issues, and enhance the core competitiveness of the listed company [3]