Caishang News, November 22nd (Reporter Wang Biwei) Fingerprint chip giant Shenzhen Goodix Technology (603160.SH) is about to enter a new field. Shenzhen Goodix Technology announced tonight that the company is planning to acquire the controlling rights of display chip manufacturer Yunying Valley Technology Co., Ltd. (referred to as Yunying Valley) by issuing shares and paying cash, while the company plans to issue shares to raise matching funds.

The announcement shows that on November 22nd, Shenzhen Goodix Technology has signed a 'Share Acquisition Intent Agreement' with Gu Jing, Shenzhen Yishi No.1 Enterprise Management Center (Limited Partnership), Shenzhen Yisheng No.1 Enterprise Management Center (Limited Partnership), and Shenzhen Yishi No.2 Enterprise Management Center (Limited Partnership).

At the same time, the company stated that since the transaction is still in the planning stage and there are uncertainties, the company's stock will be suspended from November 25th, with the expected suspension period not exceeding 10 trading days.

Tianyancha data shows that currently, Gu Jing, the main controller of Yunying Valley, holds approximately 0.1738% of the company's shares; the other three trading parties, Shenzhen Yishi No.1 Enterprise Management Center, holds approximately 9.6566% shares, Shenzhen Yisheng No.1 Enterprise Management Center holds approximately 6.3597% shares, and Shenzhen Yishi No.2 Enterprise Management Center holds approximately 3.3704% shares. It can be calculated that Shenzhen Goodix Technology's total acquisition of Yunying Valley shares this time is approximately 19.5605%, making it the largest shareholder in Yunying Valley's current structure after the completion of the transaction.

Yunying Valley's official website shows that the company was established in 2012 and is an enterprise specializing in the research and development, design, and sales of OLED display driver chips with display technology research as its core.

Currently, Yunying Valley already has a certain leading position in the OLED display driver chip field. Research institution CinnoResearch's article shows that in 2022, Yunying Valley's overall AMOLED display driver chip sales ranked sixth globally and first among mainland Chinese suppliers, Yunying Valley also forecasts that by 2024, the company's shipments of OLED driver chips for branded phones will reach 55 million to 60 million pieces; In addition, in independent display driver backplane chip manufacturers, the company's 2022 Micro OLED silicon-based display driver backplane chip sales ranked first globally.

Of note, Yunying Valley had a clear IPO plan before. In January 2023, China International Capital Corporation released the 'Public Offering of Shares and Listing Guidance Filing Report for Yunying Valley Technology Co., Ltd.' Since then, the company has undergone several rounds of financing but has not formally submitted an IPO application.

For shenzhen goodix technology, seeking additional volume is currently an important task for the company, and the acquisition of display chip-related assets can also be seen as a sign of its foray into new fields.

Before 2018, shenzhen goodix technology experienced rapid growth due to the widespread adoption of smart phones, but with apple switching from fingerprint to facial recognition for unlocking, combined with the decline in high growth of smart phones, the profitability of the fingerprint chip industry also witnessed a cliff-like decline. From 2019 to 2023, shenzhen goodix technology's revenue decreased from 6.473 billion yuan to 4.408 billion yuan, and the gross margin gradually declined from 60.4% to 40.46%.

An individual from the securities department of shenzhen goodix technology stated in an interview with caixin on October 29 this year that the traditional under-display fingerprint business is relatively stable at the moment, and the company's performance growth will mainly come from new areas such as ultrasonic fingerprint, optical sensors, NFC products, and the like.