Based on this, the company intends to acquire up to 100% equity of the target company from Longteng Semiconductor Co., Ltd. (the target company) shareholders, including 24.81% equity directly held by the seller (who is the single largest shareholder and chairman of the target company). The seller intends to sell and agrees to communicate to facilitate other shareholders of the target company to sell up to 100% equity of the target company to the company. The expected maximum consideration for the proposed transaction is between approximately HKD 4.5 billion and HKD 9 billion (including, but not limited to, the latest financing valuation of the target company), subject to the agreement of the contracting parties and included in the final agreement (formal agreement) to be signed by all parties.

The target company is a leading provider of power semiconductor devices and system solutions, and is the main enterprise of the key industrial chain (semiconductor and integrated circuit) in Shaanxi Province, China (it is also a specialized and innovative "little giant" enterprise of the Ministry of Industry and Information Technology).
The group has been actively seeking to expand its business. The target company is a power semiconductor full industry chain enterprise that integrates research and development, production, and sales. As the world's largest consumer market for power semiconductors, China holds almost half of the global market share, but the localization rate of mid to high end products is relatively low. The target group has a core group with both industry experience and capital vision, which can effectively expand its market share in the power semiconductor consumer market. The group believes that the proposed transaction will help the group further expand its business scope.
It is understood that Longteng Semiconductor is a design oriented enterprise in the semiconductor industry, mainly engaged in the research and development, design, and sales of power device products mainly based on power MOSFETs, and providing system solutions to customers.
Longteng Semiconductor's products cover the main categories of power MOSFET discrete devices, forming four major product platforms: super junction MOSFET, planar MOSFET, shielded gate trench MOSFET, and trench MOSFET. They have been widely used in LED lighting drivers, power adapters, TV boards, battery management systems, communication power sources, special power supplies, and other fields.
According to reports in early 2022, Longteng Semiconductor was delisted from the Science and Technology Innovation Board.