Huatian Technology to acquire Huayi Microelectronics, raise capital

Tianshui Huatian Technology Co., Ltd. (SZSE:002185) proposes to acquire 100% equity of Huayi Microelectronics Co., Ltd. from 27 counterparties, including Tianshui Huatian Electronics Group Co., Ltd., Xi'an Houyi Investment, and Xintian Yupeng. This will be done through a combination of share issuance and cash payment. Concurrently, the company plans to raise supporting funds from up to 35 specific investors. The shares will be issued at CNY 8.35 per share, not less than 80% of the average trading price over the 120 trading days prior to the pricing reference date.

This transaction aims to strengthen Huatian Technology’s core business by integrating Huayi Microelectronics, a high-tech enterprise specializing in power device R&D, design, packaging, and testing. Huayi Microelectronics’ performance is projected to improve, with an estimated net profit exceeding CNY 30m in Q3 2025, an 80% increase quarter-on-quarter. The acquisition is expected to optimize Huatian Technology’s industrial layout and enhance its overall competitiveness and profitability by expanding into power device packaging and testing, and developing its own brand of power devices.

The acquisition is subject to multiple approvals, including a re-evaluation of asset valuation post-audit, and shareholder approval. No definitive valuation for the assets or precise share issuance details have been disclosed as of the preliminary proposal’s signing date. This transaction is considered a related party transaction due to the involvement of controlling shareholders and related entities.