Core Viewpoint - The company, Zai Sheng Technology, announced the termination of its acquisition of a 49% stake in Sichuan Maikelong Vacuum New Materials Co., Ltd. due to objective factors affecting the transaction progress [1][3]. Group 1: Acquisition Details - The acquisition was initially announced in early August, with a proposed purchase price of 231 million RMB for the 49% stake, aiming to gain control over Maikelong [1][2]. - Maikelong is a high-tech enterprise focused on the research, production, and sales of vacuum insulation panels, with a registered capital of 32.14 million RMB [2]. - The acquisition was complicated by the fact that the majority shareholder, Yang Xingzhi, had his 66.67% stake in Maikelong judicially frozen, which was a significant barrier to the transaction [2][3]. Group 2: Financial Implications - The acquisition was classified as a related party transaction, as one of Maikelong's minority shareholders is the sister of Zai Sheng Technology's controlling shareholder [1][2]. - In 2024, Zai Sheng Technology had a procurement amount of 108 million RMB from Maikelong, while sales to Maikelong amounted to 221 million RMB [1][4]. - The estimated valuation for 100% of Maikelong was 471 million RMB, reflecting a valuation increase rate of 346.18% based on the proposed acquisition price [4]. Group 3: Company Performance - Zai Sheng Technology reported a revenue of 658 million RMB in the first half of 2025, a year-on-year decline of 12.29%, with a net profit of 60.29 million RMB, down 20.84% year-on-year [5]. - The company stated that the termination of the acquisition would not have a substantial impact on its development strategy or financial status, as no payment had been made for the stake [5].