Core Viewpoint - Deep Science and Technology (深科达) announced the acquisition of 16.92% equity in its subsidiary Shenzhen Line Horse Technology Co., Ltd. for 47.376 million RMB, aiming to enhance management efficiency and competitiveness [1][2]. Group 1: Acquisition Details - The acquisition price is set at 47.376 million RMB, to be paid in four installments, resulting in Deep Science holding 80.92% of Line Horse Technology post-acquisition [1]. - The transaction is classified as a related party transaction but does not qualify as a major asset restructuring under relevant regulations [1]. Group 2: Company Background and Performance - Shenzhen Line Horse Technology was established on July 13, 2015, focusing on precision linear motors and related automation equipment [1]. - In Q1 2024, Line Horse Technology reported revenues of 29.576 million RMB and a net profit of 5.5321 million RMB [1]. - Deep Science and Technology, founded in 2004 and listed on the Sci-Tech Innovation Board in 2021, specializes in 3C panel intelligent equipment and semiconductor packaging testing equipment [2]. Group 3: Financial Performance - In 2024, Deep Science reported total revenue of 509 million RMB, a decline of 8.82% year-on-year, with a net loss of 106 million RMB [2]. - The company experienced net losses of 35.84 million RMB in 2022 and 116 million RMB in 2023 [2]. - Accounts receivable for Deep Science from 2022 to 2024 were 466 million RMB, 399 million RMB, and 409 million RMB, representing approximately 79%, 71%, and 80% of total revenue, respectively [2]. Group 4: Performance Commitments - The acquisition includes performance commitments with net profit targets of 20.5 million RMB, 21.8 million RMB, and 23.7 million RMB for the years 2025, 2026, and 2027, respectively, totaling a minimum of 66 million RMB over three years [2]. Group 5: Market Reaction - Following the acquisition announcement, Deep Science's stock price increased by 15.65%, reaching 17.51 RMB per share during midday trading [4].