Core Viewpoint - The acquisition of Circuit Foil Luxembourg (CFL) by Jiujiang Defu Technology Co., Ltd. marks a significant milestone in the global copper foil industry, enhancing Defu's leadership position in lithium battery copper foil and solidifying its strategic advantage in the electronic circuit copper foil sector, transitioning from a "follower" to a "leader" [1][4]. Group 1: Strategic Acquisition and Market Position - The acquisition enables Defu Technology to complement its technology and establish a dual-driven strategy in the high-end electronic circuit copper foil market, which has been dominated by Japanese and Taiwanese companies [2][3]. - Defu Technology has a strong market presence, with 2024 revenue exceeding 7.8 billion yuan and a production capacity of 175,000 tons per year, making it the leading player in China's lithium battery copper foil market [2][3]. Group 2: Capacity Expansion and Global Strategy - Following the acquisition, Defu's total production capacity will increase from 175,000 tons per year to 191,000 tons per year, confirming its position as the world's largest producer of electrolytic copper foil [4][5]. - The acquisition of CFL's production base in Luxembourg (16,800 tons per year) will serve as a key point for Defu's global strategy, establishing a "Asia-Pacific + Europe and America" production and sales system [5]. Group 3: Financial Performance and Market Impact - The acquisition is expected to significantly enhance Defu's financial performance and market valuation, leveraging CFL's high processing fee income and Defu's cost optimization capabilities [7]. - CFL's high-end products command a premium in the market, with processing fees significantly higher than domestic counterparts, contributing to Defu's revenue growth and profitability [7]. Group 4: Technological Integration and Innovation - The merger represents a deep integration of technologies, with Defu's extensive experience in lithium battery copper foil and CFL's advanced high-end products creating a strong collaborative innovation environment [8][9]. - Defu's commitment to R&D is evident, with a 30.45% increase in R&D investment in 2024 and a focus on developing cutting-edge technologies in the copper foil industry [9]. Group 5: Future Vision and Global Leadership - Defu Technology aims to redefine the global copper foil industry, transitioning from "Made in China" to "Intelligent Manufacturing Globally," with plans to strengthen its presence in Southeast Asia and further develop its global market strategy [11][12]. - The company is positioned to lead the technological revolution in the copper foil sector, focusing on high-value products and performance improvements rather than price competition [13][14].