Huatian Technology has announced plans to acquire Huayi Microelectronics through a combination of share issuance and cash payment, along with raising supporting funds. The transaction is considered a connected transaction but is not expected to constitute a major asset reorganization.
Huayi Microelectronics specializes in the R&D, design, packaging, and testing of high-performance power semiconductor devices, operating under a dual-driven business model of “design + packaging/testing.” Its products include both self-branded power devices and packaging services. The company holds a leading position in China in sales of SGT MOSFETs, Trench MOSFETs, and power device packaging, with certain key product performances reaching “internationally leading” or “internationally advanced, domestically leading” levels, enabling import substitution in some segments.
However, Huayi faces certain challenges. From 2020 to 2022, its R&D investment remained relatively low at 3.98%, 3.94%, and 5.03% of revenue, respectively. Revenue during this period was RMB 847 million, RMB 1.16 billion, and RMB 1.157 billion (showing a slight decline in 2022), while net profit significantly dropped from RMB 88.134 million in 2021 to a loss of RMB 43.2092 million in 2022.
ICgoodFind : The acquisition may enhance synergies in the power semiconductor supply chain, though profitability fluctuations at Huayi require attention.
