When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

According to Caixin News on November 21 (Reporter Wang Bin), another case of termination of acquisition has occurred in the A-share market. This time, the trading price of the target company has not yet been announced, and hang zhou radical energy-saving technology (300652.SZ) has already "withdrawn" its move to enter the screw rod track. It is worth noting that when hang zhou radical energy-saving technology publicly announced the acquisition was "aborted," it was only one day away from the expiration of the shareholding plan of the company's actual controller's concert party, hang zhou juwo enterprise management co., ltd (referred to as "hang zhou juwo").

This evening, hang zhou radical energy-saving technology announced that, as the parties involved in the transaction have still not reached a final consensus on this acquisition matter and are unable to sign a formal acquisition agreement, in order to protect the legal rights of the company and all shareholders, it was decided to terminate this acquisition. Hang zhou radical energy-saving technology stated that the company will continue to focus on its main business, actively integrating external sse select resources industries index while consolidating its position in the industry.

A month ago, hang zhou radical energy-saving technology signed a "Letter of Intent for Equity Acquisition" with shanghai diz precision machinery co., ltd (hereinafter referred to as "diz precision") and its shareholders shanghai shifeng business information consulting partnership (limited partnership) and other five shareholders, intending to acquire 51% of the target company’s equity by acquiring part of the equity held by the above shareholders and through increasing the targeted company’s capital.

Originally, hang zhou radical energy-saving technology expected to enter the screw rod field through this acquisition to achieve industry chain extension. According to hang zhou radical energy-saving technology, diz precision has high visibility and influence in the research and production of precision transmission products, and its technical accumulation and production capacity in the precision screw rod product field can help meet the company's production needs in the automotive ball screw field, positively impacting the value of supply per vehicle while further expanding the company’s product coverage in the original equipment collaboration business.

The announcement showed that the main business of diz precision includes the research, production, and sales of products such as ball screws, planetary rolling screws, automotive screws, electric cylinders, linear modules, and precision alignment platforms, while hang zhou radical energy-saving technology's main business focuses on the research, production, and sales of automotive bearings with products primarily used in the AM market.

At that time, hang zhou radical energy-saving technology even envisioned in the announcement: "In recent years, precision screw rod products have been widely used in multiple fields such as 3C electronics, semiconductors, lithium batteries, and medical, if the equity acquisition matter is successfully implemented, it will be beneficial for the company to further explore product research and development applications in emerging fields such as precision transmission and asia vets."

The reporter from Financial Associated Press noted that the transaction plan proposed by hang zhou radical energy-saving technology to acquire the equity of Diz Precision has not determined the trading price of the target company, only agreeing to pay the transaction price in cash. Additionally, this transaction involves performance 'gambling', with the performance commitment period being for the years 2025, 2026, and 2027, but the final performance commitment amount and performance compensation arrangements are also unclear. Currently, these factors may lead to the acquisition falling through.

It is worth mentioning that currently, there are shareholders of hang zhou radical energy-saving technology in a shareholding reduction state, and the disclosed shareholding reduction period has only one day left before the company's announcement of the termination of the acquisition of Diz Precision. On August 1 of this year, hang zhou radical energy-saving technology announced that the concerted party of the actual controller, Hangzhou Juwo, planned to reduce its holdings by no more than 1.5% of the shares, with the reduction period being three months after fifteen trading days from the date of announcement.

Affected by possibly the bullish news of hang zhou radical energy-saving technology's intention to focus on the screw rod track, the company's stock price rose to 38.48 yuan/share on October 30 of this year, setting a new high in recent years, approaching the peak stock price of 39.43 yuan/share when the company was first listed.

In the first three quarters of this year, the net income growth rate of hang zhou radical energy-saving technology lagged significantly behind the revenue growth rate. The financial report shows that the company's revenue for the first three quarters of 2024 was approximately 0.515 billion yuan, an increase of 11.24% year-on-year; the net profit attributable to the parent company was approximately 93.0012 million yuan, a slight increase of 0.04% year-on-year.