Core Viewpoint - Huada Jiutian, a leading domestic EDA (Electronic Design Automation) company, has terminated its acquisition of Chip and Semiconductor, with no adverse impact on its current operations [1][2]. Group 1: Acquisition Termination - The acquisition was initially announced on March 28, with plans to acquire 100% of Chip and Semiconductor through a combination of share issuance and cash payment [2]. - The termination was due to a lack of consensus on core transaction terms among the parties involved, as stated by the company's chairman [2]. - The company has committed to not planning any major asset restructuring for one month following the termination announcement [2]. Group 2: Strategic Focus - Huada Jiutian will continue to focus on independent research and development, collaborative development, and mergers and acquisitions to accelerate its full-process layout in the EDA field [2][4]. - The company has previously acquired several firms and established two industry funds to deepen its investment in the EDA sector [3]. Group 3: Industry Context - The EDA industry in China consists of over 100 companies, with some possessing specific technical advantages in niche areas [2]. - The terminated acquisition was seen as a way to enhance Huada Jiutian's capabilities in RF, high-speed, multi-physical simulation, and advanced packaging, thereby improving its system-level EDA solution offerings [5]. Group 4: Future Plans for Chip and Semiconductor - Chip and Semiconductor will continue its IPO counseling process, which began on February 7, despite the termination of the acquisition [6]. - The company remains optimistic about its long-standing partnership with Huada Jiutian and sees potential for future collaboration in technology and business [6].

Group 1: Termination of Acquisition - The company terminated the acquisition due to failure to reach consensus on core transaction terms after negotiations [2] - The decision to terminate was made to protect the interests of the company and all shareholders [2] - The termination will not adversely affect the company's normal operations [3] Group 2: Future Acquisition Plans - The company has previously acquired several EDA firms and plans to continue seeking beneficial acquisition opportunities [3] - There are over 100 domestic EDA companies, some of which have technical advantages in specific niches [4] - The company will not pursue major asset restructuring for one month following the termination announcement [3] Group 3: Financial Performance and Market Response - The company will disclose its 2025 half-year performance report on August 29, 2025 [3] - The company acknowledges that stock price fluctuations are influenced by various factors, including macroeconomic conditions and market sentiment [3] - The company aims to enhance its internal value to create long-term value for shareholders [3] Group 4: Strategic Focus and Recommendations - The company is committed to a combination of independent research, collaborative development, and mergers to accelerate its full-process layout in the EDA field [4] - The company is focused on filling gaps in the EDA industry chain and enhancing product maturity and competitiveness [4] - Suggestions for the board include improving operational performance and stock price, while balancing industry trends and shareholder service [5]