On June 18, Baoxin Technologies announced that it had recently received a notification letter from Jiangsu Yingsu Technology Co., Ltd. to terminate the transaction unilaterally. Baoxin Technologies said that it was actively communicating with the counterparty, and that the company would hold a meeting in time to consider and announce the acquisition after the two sides finally reached an agreement.
Earlier, on March 4, Baoxin Technologies announced that it had acquired 40% of Jiangsu Shadow Speed Integrated Circuit Equipment Co., Ltd. (Hereinafter referred to as "Shadow Speed Integration") through its consolidated subsidiary Zhejiang Shadow Speed Integrated Circuit Equipment Manufacturing Co., Ltd. (Hereinafter referred to as "Zhejiang Shadow Speed") for 320 million yuan in cash. After the completion of the transaction, Zhejiang Yingsu will become the controlling shareholder of Yingsu Integration.
According to the acquisition announcement, Yingsu Integration promises that the net profit from 2025 to 2027 will not be less than 35 million yuan, 80 million yuan and 100 million yuan respectively, and the total net profit from 2025 to 2027 will not be less than 215 million yuan. If the above performance targets are not achieved, Baoxin Technologies can receive relevant compensation.