Halo Micro(SH:688173)2024-07-18 07:36Group 1: Acquisition Details - The acquisition involves a 30.91% stake in Zinitix, with a transaction price of RMB 109 million, valuing Zinitix at RMB 353 million [5] - Zinitix's 2023 revenue is projected at RMB 175 million, resulting in a P/S ratio of 2x for the acquisition [5] - The acquisition is expected to close on August 29, 2024, or another mutually agreed date [5] Group 2: Strategic Rationale - Zinitix is listed on the Korean KOSDAQ, indicating high compliance standards and a strong product matrix in the simulation chip sector [5] - The acquisition aims to enhance the company's product offerings and market competitiveness, particularly in the Greater China region [6] - Zinitix's product lines, including Touch IC and Auto Focus Driver chips, complement the company's existing products [6] Group 3: Market and Product Insights - The demand for autofocus and optical image stabilization chips is expected to grow, with potential applications expanding to mid-range devices [6] - Zinitix's Touch IC products are utilized in both mobile and wearable devices, indicating a diverse application range [7] - Zinitix currently supplies various chips to Samsung, integrating into their supply chain [7] Group 4: Future Plans and Management - Post-acquisition, the company will hold 30.93% of Zinitix's shares, becoming the largest shareholder and gaining control over board decisions [7] - There are no immediate plans for further acquisitions of Zinitix shares beyond the current transaction [7] - Future management strategies will focus on supply chain collaboration, customer partnerships, and gradual business integration [7] Group 5: Regulatory Considerations - The company believes that the acquisition is unlikely to require approval from Korean regulatory authorities [7] - The transaction has been conducted in compliance with relevant regulations, ensuring no significant information leakage occurred [8]