Ferrotec Anhui Technology Development Co Ltd Announces Major Acquisition

Ferrotec Anhui Technology Development Co Ltd, a company listed on the Shenzhen Stock Exchange, has announced plans to acquire 100% of the shares of Fu Le Hua. The transaction is valued at 65.5 billion CNY, representing a 116% increase in value. This strategic move is part of Ferrotec’s efforts to enhance its position in the semiconductor industry. The acquisition will be financed through the issuance of shares and convertible corporate bonds to 59 transaction parties, including Shanghai Shenhe.

Market Reaction and Sector Performance

Following the announcement, the semiconductor sector experienced a positive market response. On May 22, 2025, the semiconductor sector saw an initial rally, with Hidilong shares rising by over 14%. Other companies in the sector, including Ferrotec, Sirui Pu, Xinpeng Micro, Nasix Micro, and Shilang Micro, also experienced gains.

Financial Context

As of May 20, 2025, Ferrotec’s closing price was 40.8 CNY. The company’s market capitalization stands at 12,520,430,592 CNY, with a price-to-earnings ratio of 119.557. The stock has experienced significant volatility over the past year, with a 52-week high of 77.66 CNY on October 28, 2024, and a low of 17.88 CNY on August 27, 2024.

Additional Financial Developments

In related financial news, leveraged funds have been continuously adding to the ChiNext board stocks for three consecutive days. As of May 21, 2025, the latest financing balance for ChiNext board companies was 34,428.86 billion CNY, marking a cumulative increase of 24.39 billion CNY over the period.

Company Announcements

Ferrotec has also released several reports and announcements regarding its financial strategies and shareholder meetings. These include a draft report on the issuance of shares and convertible corporate bonds for asset acquisition and related transactions, as well as independent financial advisor reports from major financial institutions.

This acquisition marks a significant step for Ferrotec in its strategic development within the semiconductor industry, reflecting its commitment to industry leadership and growth.