Core Viewpoint - Fuda Alloy (603045.SH) has announced the termination of its acquisition of Zhejiang Guangda Electronic Technology Co., Ltd. after multiple delays in responding to inquiries from the stock exchange, potentially influenced by a patent lawsuit involving the target company [1][3]. Group 1: Acquisition Details - Fuda Alloy planned to acquire 52.61% of Guangda Electronic for a cash consideration of 350 million yuan, aiming to become the controlling shareholder and consolidate Guangda's financials [3]. - The acquisition was initially disclosed in September, but faced scrutiny from the stock exchange regarding the rationale for the acquisition, particularly due to declining performance of the target [5]. Group 2: Patent Litigation Impact - The termination of the acquisition may be linked to a patent lawsuit initiated by Dike Co., Ltd. against Guangda Electronic, alleging infringement of a patent related to semiconductor materials [3][5]. - Dike's subsidiary, Zhejiang Suote Material Technology Co., Ltd., has been involved in this legal dispute, which has raised concerns about Guangda's long-term business potential due to the ongoing litigation [3][11]. Group 3: Patent Details and Implications - The patent in question, owned by Dike, covers a broad range of materials used in semiconductor manufacturing, which could significantly impact Guangda's operations and market position [6][11]. - Guangda Electronic's sales from photovoltaic silver paste are projected to constitute a significant portion of its revenue in the coming years, raising concerns about the sustainability of its business model amid the patent disputes [11][12]. Group 4: Industry Context - The acquisition landscape in the photovoltaic silver paste industry is characterized by a focus on building patent barriers, as seen in Dike's acquisition of Zhejiang Suote, which aimed to enhance its market share through a robust patent portfolio [8][10]. - Historical patterns indicate that patent disputes in this sector often lead to settlements, suggesting that Guangda may face similar pressures in the future [10].

Core Viewpoint - Fuda Alloy (603045.SH) announced the termination of its acquisition of Zhejiang Guangda Electronic Technology Co., Ltd. after multiple delays in responding to inquiries from the stock exchange, potentially influenced by a patent lawsuit involving the target company [2][4][8]. Group 1: Acquisition Details - Fuda Alloy planned to acquire 52.61% of Guangda Electronic for a cash consideration of 350 million yuan, aiming to become the controlling shareholder and consolidate Guangda's financials [4][7]. - The acquisition was initially disclosed in September, but faced scrutiny from the stock exchange regarding the rationale for the acquisition and the declining performance of the target [7][8]. Group 2: Legal Challenges - The acquisition faced complications due to a patent infringement lawsuit filed by Dike Co., Ltd. against Guangda Electronic, which was accepted by the court [4][6]. - Guangda Electronic counter-sued Dike, claiming the lawsuit was malicious, but the court rejected its jurisdiction objection [4][6][9]. - Fuda Alloy's management indicated that the patent lawsuit exceeded reasonable bounds and suggested potential commercial motives behind it [9][10]. Group 3: Patent Implications - The patent in question relates to a thick film paste used in semiconductor manufacturing, with broad claims that could impact Guangda Electronic's product offerings [11][17]. - Guangda Electronic's projected revenue from its photovoltaic silver paste products is significant, with expectations of high sales proportions in the coming years, but these projections may be at risk due to ongoing patent disputes [16][17]. - The patent involved has a protection period until 2031, which raises concerns about Guangda's future product viability and may have influenced Fuda Alloy's decision to terminate the acquisition [17].