According to The Star Daily on December 30 (Reporter Guo Hui), an important merger and acquisition event has occurred in the third-party testing field of semiconductors as 2024 comes to an end.

Guangdong Leadyo Ic Testing Co.,Ltd. announced today (December 30) that the company has signed a "Equity Transfer Intent Agreement" with shareholders Li Ling, Li Ruilin, Feng Xiaotao, Jia Yanlei, Sun Xuyan, and Li Liang of Guoxin Micro (Chongqing) Technology Co., Ltd. (hereinafter referred to as "Chongqing Guoxin Micro"), intending to acquire 100% equity held by the aforementioned shareholders.

The announcement of the acquisition plan does not disclose the target company's business data, asset evaluation report, and purchase price at this time. Guangdong Leadyo Ic Testing Co.,Ltd. stated that the final purchase price will be determined after completing due diligence and audit, evaluation procedures, and will be clarified in the formal transfer agreement.

The announcement shows that the signed "Equity Transfer Intent Agreement" does not constitute a final agreement for the parties' consent to the transfer; it is merely an intended agreement of cooperation willingness and basic principles, and there is still uncertainty in the planned transaction matters.

Chongqing Guoxin Micro was established in 2019, with Li Ruilin as the legal representative, and a registered capital of 15.8 million yuan. Chongqing Guoxin Micro is an independent third-party integrated circuit testing technology solution provider, capable of providing wafer testing, finished product testing, and module testing technical services, and has an independent laboratory and analysis verification platform.

It is noteworthy that Chongqing Guoxin Micro has the capability to provide identification, inspection, selection testing, and failure analysis services for special components, chips, and modules.

Guangdong Leadyo Ic Testing Co.,Ltd. stated that Guoxin Micro has the laboratory validation capabilities and related qualifications for special semiconductors; if this acquisition is successfully implemented, it will work in synergy with the company's existing main business, filling the gap in the integrated circuit testing special semiconductors field. "This acquisition aims to strengthen the company's strategic layout focusing on the testing main business. By integrating both parties' technology, market, and qualifications, resource integration will be achieved, which will help deepen the company's layout in the integrated circuit testing service field and enhance the company's overall competitiveness."

This acquisition is expected to supplement Guangdong Leadyo Ic Testing Co.,Ltd. with specialized chip testing capabilities. According to a reporter from the Star Daily, it was noted that Guangdong Leadyo Ic Testing Co.,Ltd. previously focused its business predominantly on the CNI Yangtze Index and the South China Greater Bay Area Concept. As GuoXinwei is located in the southwest region of China, a successful acquisition will also expand the listed company's market to new regional areas.

Reportedly, Guangdong Leadyo Ic Testing Co.,Ltd. has established four integrated circuit testing technology service bases and one technology service base for wafer thinning, polishing, laser grooving, and laser hidden cutting, with centers located in the South China Greater Bay Area Concept (Dongguan, Guangdong Province) and the CNI Yangtze Index (Jiading District, Shanghai). Guangdong Leadyo Ic Testing Co.,Ltd. stated that this layout can provide services to end customers while achieving rapid response in front-end wafer manufacturing and packaging.

According to the information available, Chongqing Guoxinwei is a high-tech enterprise in Chongqing and a 'Specialized, Special and New' small and medium-sized enterprise in Chongqing.

In the past two years, Chongqing has been increasing the development of its integrated circuit industry in conjunction with local advantageous industries.

According to the 'Chongqing Integrated Circuit Design Industry Development Action Plan (2023-2027)' published by the Chongqing Municipal Government in January 2024, Chongqing aims for the integrated circuit design industry's revenue to exceed 12 billion yuan by 2027. Specifically, Chongqing will leverage its unique processes in integrated circuits and the complete vehicle manufacturing industry to enhance the collaborative level of integrated circuits within the city, with a focus on developing a regional IDM (Integrated Device Manufacturer) model in Chongqing and improving the ecological chain of the integrated circuit design industry, building an industry cluster primarily centered in the Liangjiang New Area and the Chongqing High-tech Zone of the Western Science City.

In terms of company size, Chongqing Guoxinwei is considerably smaller than Guangdong Leadyo Ic Testing Co.,Ltd.

As of the date of the above announcement, Chongqing Guoxinwei has only obtained 3 invention patents and 22 software copyrights, with an additional invention patent and 8 software copyrights currently under application. In contrast, Guangdong Leadyo Ic Testing Co.,Ltd. accumulated a total of 106 invention patents by the first half of 2024.

In an interview with upstream news in January 2024, Li Ruilin, the general manager of Chongqing Guoxinwei, stated that since its establishment, Guoxinwei has invested a total of 80 million yuan, with annual sales reaching 25 million yuan in 2021, 45 million yuan in 2022, and 80 million yuan in 2023. The expected revenue scale for 2024 is anticipated to reach 0.15 billion yuan.

In the first three quarters of 2024, Guangdong Leadyo Ic Testing Co.,Ltd. achieved revenue of 0.36 billion yuan, a year-on-year decrease of 4.17%; the net income attributable to the parent company was -12.19 million yuan.

Li Ruilin, the founder of Chongqing Guoxin Micro, is from Peking. He graduated from the University of Electronic Science and Technology, and has approximately 40 years of experience in the semiconductor testing field. When he established Guoxin Micro in 2019, he was 52 years old. Li Ruilin stated that according to his previous plan, Guoxin Micro will invest at least 50 million yuan each year in the future to ensure the final quality of chip production in Chongqing.