Strategic and Valuation Impact Analysis of Guixiang Technology's Proposed Acquisition of 60% Stake in Liaojing Electronics

Guixiang Technology (301213) recently announced its intention to acquire no less than 60% equity stake in Jinzhou Liaojing Electronics to enter the integrated circuit and power electronic components sectors. The transaction has led to the suspension of the company’s stock from trading starting December 22, 2025. The plan is expected to be disclosed within 10 trading days and the stock to resume trading by January 7, 2026 [0].

1. Semiconductor Sector Expansion
   : Guixiang Technology may focus on the military technology field; this acquisition is a key layout to extend into the semiconductor industry, aligning with the industry trend of tech enterprises enhancing supply chain control and technical capabilities [1].
2. Vertical Integration
   : For military tech enterprises, mastering key electronic components and integrated circuits is core to product development and supply chain security. Acquiring Liaojing Electronics enables vertical integration, reducing reliance on external suppliers and enhancing product competitiveness [2].
3. Policy Alignment
   : China’s national strategy to strengthen the semiconductor industry provides a supportive environment for such acquisitions, and relevant enterprises are expected to benefit from policy incentives and subsidies [3].

• Short-term Impact
  : There will be no immediate market reaction during the stock suspension period; the disclosure of the transaction plan (by January 7, 2026) will be a key driver of the stock price trend. If the plan has a clear structure and explicit synergies, a positive reaction may occur after the stock resumes trading.
• Long-term Impact
  : It mainly depends on three factors: the consideration for acquiring Liaojing Electronics (valuation multiple), the integration effectiveness of the two enterprises, and the growth potential of the merged entity in the semiconductor and military technology fields.

1. Alignment with Industry Trends
   : This acquisition reflects the common industry trend of tech enterprises expanding into the semiconductor sector to enhance core competitiveness [1].
2. Supply Chain Security Considerations
   : The military technology field has extremely high requirements for supply chain independence; vertical integration is an important strategic direction to enhance competitiveness [2].
3. Policy Environment Support
   : Domestic semiconductor industry policies provide positive external conditions for Guixiang Technology’s acquisition [3].
4. Valuation Uncertainty
   : Due to undisclosed transaction details (such as consideration, integration plan, etc.), it is currently difficult to make an accurate judgment on the specific impact on the company’s valuation.

• Entering the high-growth semiconductor sector to expand business boundaries and market space.
• Enhancing supply chain efficiency and product competitiveness through vertical integration.
• Benefiting from national semiconductor industry policy support to obtain potential policy dividends.

• Excessively high acquisition consideration may lead to company valuation pressure.
• High difficulty in business integration between the two enterprises, and synergies may fall short of expectations.
• If the transaction plan fails to meet market expectations, it may trigger stock price fluctuations after the stock resumes trading.

Guixiang Technology intends to acquire no less than 60% equity stake in Liaojing Electronics to expand into the semiconductor and electronic components sectors. Its strategic intentions clearly point to industry expansion, vertical integration, and policy alignment. Short-term valuation impact will be determined by the results of the transaction plan disclosure, while long-term impact depends on business integration effectiveness and the growth potential of the merged entity. Current transaction details are still incomplete; follow-up plan announcements should be monitored for more accurate judgment basis.