An overview of the incident. The company issued an announcement: it plans to use cash payment to acquire 85% of the shares of Shenzhen Yunbo Technology Electronics Co., Ltd. (Yunbo Technology for short) held by Shenzhen Changdian Bohua for RMB 22.6 million; after the acquisition is completed, Yunbo Technology will become the company's holding subsidiary. Analysis and judgment. The acquisition of Yunbo Technology had obvious synergy effects and accelerated import substitution. Changdian Bohua specializes in automotive regulators, with a production capacity of more than 3.8 million sets; it has strong product development capabilities. Its main customers include BOSCH, Remy, Chengdu Huachuan Electric, Chongqing Bonet, Zhejiang Dakar, etc., and mainly supplies downstream automakers with FAW Group, SAIC GM-Wuling, Chongqing Changan Group, Yuchai Power, BYD, Chery, Geely Automobile, etc. After years of technology accumulation, Changdian Bohua has certain market competitiveness in the domestic automotive regulator field, ranking second in market share, second only to Yunyi Electric. The acquisition of Yunbo Technology will complement the company's advantages in terms of product structure and customer resources, have obvious synergy effects, accelerate market expansion, and quickly achieve import substitution. Yunbo Technology enhances the competitiveness of the company's product market and adds color to its performance. Yunyi Electric currently has an annual production capacity of 8.3 million sets of automotive regulators, with a domestic market share of about 15%. It is mainly supported by OEMs such as SAIC Motor Group, Chery Auto, and JAC, and has entered high-end automobile maintenance systems such as Mercedes-Benz, BMW, Audi, and GM; the newly developed next-generation LIN bus regulator products are the most advanced automotive intelligent regulators, and the product technology is high, which is expected to drive the company's overall gross margin increase. This time, the company acquired Yunbo Technology for 22.6 million yuan, which is in line with the trend of auto parts integration. It has added production capacity of more than 3.8 million sets of automotive regulators, and is expected to increase annual profit of about 5 million yuan. The main business performance is at an inflection point, and the future is optimistic about the layout in the field of new energy vehicles and smart cars. Highlights of the company's future performance: 1) Traditional vehicle regulators and rectifiers continue to achieve product upgrades; 2) automotive high-power diodes are cost-effective, and import substitution is obvious; 3) smart wipers will soon be released, in line with the trend of intelligent automotive electronics; 4) “self-accumulation+fixed increase+epitaxial mergers and acquisitions (acquisition of Shanghai Lixin)” to accelerate the layout of electric control of electric motors for new energy vehicles; 5) Establishing an industrial fund to accelerate the layout of smart cars and new energy vehicles through industrial investment methods. Investment advice. The company is a leading smart power controller in China. The strategy is clear. In the future, the main business is import substitution, product upgrades, upstream and downstream expansion, and epitaxial layout of new energy vehicles and smart cars, and is optimistic about laying out future development space for emerging businesses. Regardless of the increase in performance from this acquisition, it is estimated that the EPS for 16-17 will be 0.53 and 0.76 yuan respectively, maintaining the “buy” rating. risk. Automobile sales continued to be sluggish; the company's emerging business layout fell short of expectations.