Core Viewpoint - Dike Co., Ltd. plans to acquire 60% of Zhejiang Sote Materials Technology Co., Ltd. for 696 million yuan, which will make Zhejiang Sote a subsidiary and allow Dike to control the Solamet® photovoltaic silver paste business previously under DuPont Group [2] Group 1: Acquisition Details - The acquisition will be completed through a cash transaction of 696 million yuan, and it constitutes a related party transaction due to performance compensation commitments made by the controlling shareholder, Shi Weili [2] - A supplementary agreement was signed to redefine the performance compensation calculation period, payment duration, and asset impairment compensation [2] - Shi Weili has committed that Zhejiang Sote's audited net profits for the years 2025 to 2027 will not be less than 68.1 million yuan, 90.8 million yuan, and 128.1 million yuan respectively, totaling at least 287 million yuan [2] Group 2: Financial Performance of Zhejiang Sote - As of May 31, 2025, Zhejiang Sote's total assets are 2.965 billion yuan, total liabilities are 2.298 billion yuan, and net assets are 666.5 million yuan [3] - For the period of January to May 2025, Zhejiang Sote reported operating revenue of 2.278 billion yuan, operating profit of 60.76 million yuan, and net profit of 43.49 million yuan [3] Group 3: Historical Context - In December 2021, Dike Co. announced a plan to acquire 100% of Zhejiang Sote for 1.247 billion yuan through a share issuance, but the acquisition was terminated in September 2022 due to disagreements on core terms with some counterparties [4] Group 4: Company Overview - Dike Co., Ltd. was established on July 15, 2010, and listed on June 18, 2020, focusing on the research, production, and sales of high-performance electronic materials [9]

Core Viewpoint - The company DiKe Co., Ltd. plans to acquire 60% of Zhejiang Suote Material Technology Co., Ltd. for a cash payment of 696 million yuan, aiming to enhance its industry layout and profitability through this acquisition [1][5]. Group 1: Acquisition Details - The acquisition involves a cash payment of 696 million yuan for 60% equity in Zhejiang Suote, which will become a subsidiary of DiKe [1][5]. - The total valuation of 100% equity in Zhejiang Suote is 1.163 billion yuan, representing an 80.30% premium [2][9]. - The performance commitment for Zhejiang Suote is to achieve a net profit of no less than 287 million yuan over the next three years [2][9]. Group 2: Financial Performance - In the first quarter of this year, DiKe reported revenue of over 4 billion yuan, a year-on-year increase of over 10%, but its net profit attributable to shareholders decreased by 80% [3][8]. - Zhejiang Suote is projected to achieve revenues of 1.261 billion yuan in 2023 and 3.553 billion yuan in 2024, with net profits of -12.56 million yuan and 50.91 million yuan respectively, indicating a turnaround in profitability [6][7]. - DiKe's revenue has shown consistent growth from 1.582 billion yuan in 2020 to 15.351 billion yuan in 2024, with significant year-on-year growth rates [8]. Group 3: Strategic Implications - The acquisition is expected to optimize DiKe's business layout and enhance its competitive edge through synergies with Zhejiang Suote's operations, particularly in the Solamet photovoltaic silver paste business [4][6]. - DiKe aims to strengthen its position in the domestic silver paste market, which has historically relied on international giants [7][8].

Core Viewpoint - The company, Dike Co., Ltd. (300842.SZ), has restarted its acquisition of silver paste assets after three years, planning to acquire 60% of Zhejiang Sote for 696 million yuan to gain control of the Solamet® photovoltaic silver paste business [2][7]. Group 1: Acquisition Details - Dike Co. plans to acquire 60% of Zhejiang Sote for 696 million yuan, making it a controlling subsidiary [7]. - The acquisition price represents a discount of approximately 10% compared to the previous valuation of 1.2816 billion yuan for 100% of Zhejiang Sote in 2021 [11]. - The funding for the acquisition will come from the company's own funds and financing through acquisition loans, with cash reserves reported at 2.595 billion yuan as of the end of Q1 [9]. Group 2: Strategic Objectives - One of the main objectives of the acquisition is to strengthen the company's patent layout in the silver paste field, addressing weaknesses in the research of photovoltaic silver paste industry mechanisms [5][12]. - The acquisition is expected to enhance the company's product system and support international expansion [12]. Group 3: Historical Context - Dike Co. previously attempted to acquire Zhejiang Sote in 2021 but terminated the deal due to changes in market conditions and failure to reach consensus with some transaction parties [4][10]. - The previous acquisition attempt was valued at 1.247 billion yuan for 100% of Zhejiang Sote, which was halted after regulatory investigations [10]. Group 4: Legal Background - Zhejiang Sote was involved in a patent lawsuit with another photovoltaic silver paste company, Juhe Materials, which was settled through a cross-licensing agreement [13][14]. - The patent in question was originally owned by DuPont and transferred to Zhejiang Sote, aligning with its acquisition of the Solamet® business [13].

Group 1 - The company plans to acquire 60% equity of Zhejiang Suote Material Technology Co., Ltd. for a cash consideration of 696 million yuan [1] - Upon completion of the transaction, Zhejiang Suote will become a subsidiary of the company, allowing it to control the Solamet® photovoltaic silver paste business previously under DuPont [1]