Goertek Inc. announced on the evening of October 17 that it has decided to terminate its planned equity acquisition.
To meet the company’s strategic development needs and enhance its comprehensive competitiveness in the precision structural components sector, Goertek had issued a notice on July 23, 2025, regarding the planned acquisition of a 100% stake in Mia Precision Technology Ltd. and Changhong Industrial Ltd., both wholly owned subsidiaries of Lianfeng Commercial Group, for approximately HKD 10.4 billion (around RMB 9.5 billion) using self-owned or self-raised funds.
During the planning of this acquisition, Goertek actively advanced the project, conducting due diligence, audits, and evaluations orderly while engaging in multiple rounds of positive communication and negotiation with the counterparties.
However, the parties involved were unable to reach consensus on key terms related to the transaction. To effectively safeguard the legal rights of Goertek and all its shareholders, the decision to terminate the acquisition was made following careful evaluation and amicable discussions with the counterparties.
In the announcement, Goertek stated that the termination of the acquisition was a consensus reached among the parties, and none of the parties involved would incur compensation or legal liabilities.
This termination will not require submission for review by the company's board of directors or shareholders’ meeting, and it will not adversely affect the company’s operational performance or financial status, nor will it damage the interests of the company and all its shareholders.
Looking ahead, Goertek will continue to focus on its established strategic goals and conduct its operational management work in an orderly manner. The company will actively promote long-term healthy development and continuously enhance its development quality and value through internal growth and diversified investments and acquisitions, thus better returning value to all shareholders.
In the first half of 2025, Goertek generated revenue of RMB 37.549 billion, with a net profit attributable to shareholders of RMB 1.417 billion. As of the market close on October 17, Goertek’s stock was trading at RMB 31.2 per share, with a total market capitalization of RMB 109.217 billion.
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