Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
78
¥ hundred millionWording
Avoiding a definitive answer
How definitive the wording is.This transaction
This equity interest transfer (this business integration)Counterparty北京豊科晶晟電子材料有限公司 (the joint venture), 北京豊科芯創株式投資基金センター (limited partnership), 北京芯創智造二期創業投資基金 (limited partnership), 寧波江豊電子材料股份有限公司
Disclosing companyULVAC, Inc.
TimelineThe spacing between the points is proportional to the actual number of days.
Target company
Development, production and sale of FPD sputtering targets and related activities
Location Suzhou Industrial Park, Jiangsu Province, People's Republic of ChinaShare capital US$24,390,000Date of incorporation 9 April 2009
Net SalesRMB 472,864 thousand (fiscal year ending December 2025)
Operating profitRMB 48,835 thousand (fiscal year ending December 2025)
Net income for the current fiscal yearRMB 42,451 thousand (fiscal year ending December 2025)
Net assetsRMB 227,118 thousand (fiscal year ending December 2025)
Consideration and expenses
Acquisition priceThe transfer price for the equity interests has not been disclosed at the request of the transfer counterparties.
Amount of extraordinary income (loss)Gain on sale of investments in affiliates: approximately ¥7.8 billion (fiscal year ending June 2026)
Impact on Business Performance
The Company expects to record a gain on the sale of investments in affiliates of approximately ¥7.8 billion as extraordinary income in its consolidated financial statements for the fiscal year ending June 2026. This gain is reflected in the Company's earnings forecast for the fiscal year ending June 2026.
Procedures and assumptions
Management structure after acquisition豊科芯創 will become the controlling shareholder of the joint venture, transitioning to a joint venture structure with the fund and KFMI as local partners in China. Following the transfer of the equity interests, the Company plans to invest in the joint venture. The target company's corporate name, representative and treatment of employees: Not disclosed
| Item | Details |
|---|---|
| Transaction name | This equity interest transfer (this business integration) |
| Counterparty name | 北京豊科晶晟電子材料有限公司 (the joint venture), 北京豊科芯創株式投資基金センター (limited partnership), 北京芯創智造二期創業投資基金 (limited partnership), 寧波江豊電子材料股份有限公司 |
| Name of the Subject Company | 愛発科電子材料（蘇州）有限公司 |
| Business Description of the Subject Company | Development, production and sale of FPD sputtering targets and related activities |
| Location of the Subject Company | Suzhou Industrial Park, Jiangsu Province, People's Republic of China |
| Capital Stock of the Subject Company | US$24,390,000 |
| Date of Establishment of the Subject Company | 9 April 2009 |
| Net Sales of the Subject Company | RMB 472,864 thousand (fiscal year ending December 2025) |
| Operating Profit of the Subject Company | RMB 48,835 thousand (fiscal year ending December 2025) |
| Net Income of the Subject Company | RMB 42,451 thousand (fiscal year ending December 2025) |
| Net Assets of the Subject Company | RMB 227,118 thousand (fiscal year ending December 2025) |
| Acquisition price | The transfer price for the equity interests has not been disclosed at the request of the transfer counterparties. |
| Number of shares acquired | All equity interests (number of shares and voting rights: Not disclosed) |
| Voting rights ownership percentage | Before 100% (indirect ownership: 77.9%) (after not disclosed) |
| Amount of extraordinary income (loss) | Gain on sale of investments in affiliates: approximately ¥7.8 billion (fiscal year ending June 2026) |
| Impact on Business Performance | The Company expects to record a gain on the sale of investments in affiliates of approximately ¥7.8 billion as extraordinary income in its consolidated financial statements for the fiscal year ending June 2026. This gain is reflected in the Company's earnings forecast for the fiscal year ending June 2026. |
| Date of board resolution | 12 May 2026 |
| Contract Date | 16 May 2026 (scheduled) (MFA) |
| Execution Date / Effective Date | May–June 2026 (scheduled) (execution date of the transfer of equity interests in the consolidated subsidiary) |
| Management structure after acquisition | 豊科芯創 will become the controlling shareholder of the joint venture, transitioning to a joint venture structure with the fund and KFMI as local partners in China. Following the transfer of the equity interests, the Company plans to invest in the joint venture. The target company's corporate name, representative and treatment of employees: Not disclosed |
Items this document does not state (12)
Expenses other than the acquisition priceType of ConsiderationMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodFunding arrangementsGoodwill amountValuation methodologyIndependent valuation institutionSpecial CommitteeConditions Precedent to Execution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In response to changes in the competitive environment in the Chinese market, the Company aims to improve business stability and medium- to long-term profitability by transitioning to a joint venture structure in which 豊科芯創 is the controlling shareholder, consolidating management resources and enabling faster decision-making.
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