Core Viewpoint - Huahong Company is planning to acquire a controlling stake in Shanghai Huali Microelectronics to resolve competition issues related to its IPO commitments, with the transaction expected to be structured through a combination of share issuance and cash payment [1] Group 1: Acquisition Details - The acquisition involves assets that are in direct competition with Huahong's operations in the 65/55nm and 40nm segments, specifically related to Huahong's fifth factory [1] - The transaction is classified as a related party transaction but will not result in a change of the company's actual controller or constitute a restructuring listing [1] - The acquisition is still in the planning stage, with initial discussions taking place with potential transaction partners, including Shanghai Huahong (Group) Co., Ltd. and several investment funds [1] Group 2: Market Position - Huahong Company is recognized as one of the leading integrated circuit wafer foundry enterprises globally, ranking fifth in the world and second among companies in mainland China based on 2024 sales figures [2]