Core Viewpoint - The company, Hunan Heshun Petroleum Co., Ltd., plans to acquire at least 34% of the equity in Shanghai Kuixin Integrated Circuit Design Co., Ltd. to gain control over the company, aiming to diversify its business into the semiconductor industry, which is seen as having significant growth potential [2][3]. Group 1: Acquisition Details - The acquisition will allow the company to control 51% of the voting rights in Kuixin Technology, enabling it to influence operational, personnel, and financial decisions [2]. - The total valuation of Kuixin Technology is capped at 1.588 billion yuan, with the expected transaction amount not exceeding 540 million yuan [2]. - The final transaction price will be determined based on an assessment by a qualified asset evaluation agency as per the Securities Law of the People's Republic of China [2][9]. Group 2: Strategic Intent - The management believes that the semiconductor IP sector has promising development prospects and aims to find new growth points for the company's future sustainability [3]. - Kuixin Technology, established in 2021, focuses on high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [3][4]. Group 3: Kuixin Technology's Capabilities - Kuixin Technology is one of the few companies in China that can provide a complete Chiplet solution, enhancing computing performance and reducing latency through its UCIe protocol [4]. - The company has developed a strategic cooperation network with international foundries like TSMC and Samsung, covering process nodes from 5nm to 55nm, and its products are widely used in data centers, AI, automotive electronics, and consumer electronics [3][4]. Group 4: Product and Service Offerings - Kuixin Technology has delivered multiple IP products to over 60 clients, including major players in the AI and data center sectors, with a strong emphasis on high performance, low power consumption, and compatibility [5]. - The business model includes providing semiconductor IP to chip design companies and foundries, offering ASIC/Design services, and Chiplet solutions through various commercial arrangements [6].