On the evening of August 18, Lance technology announced that its wholly-owned subsidiary lance international would purchase 100% equity of Kesheng Technology (Taizhou) Co., Ltd. (hereinafter referred to as “Kesheng technology”) and Keli Technology (Taizhou) Co., Ltd. (hereinafter referred to as “Keli technology”) with cash of 9.9 billion yuan. < / P > < p > both Kesheng technology and Keli technology are subsidiaries of Kecheng Technology (100% wholly owned). Among them, Kecheng technology provides processing and assembly of aluminum alloy die-casting metal shell for Apple iPhone and MacBook. In terms of finance, the profitability of the two companies can only be described as mediocre. The revenue and net profit of Kesheng technology in 2019 are 5.48 billion yuan and 53.848 million yuan respectively, and the revenue and net profit of Keli technology in 2019 are 2.71 billion yuan and 37.039 million yuan respectively. As of the end of 2019, the combined net assets of the two target companies are 3.21 billion yuan, and the price to book ratio corresponding to the transaction price is about 3.1 times; the combined EBITDA of Kesheng technology and Keli technology in 2019 is about 1.41 billion yuan, and the EV / EBITDA ratio corresponding to the transaction price is about 9.2 times. < / P > < p > it should be noted that this acquisition is a cash acquisition, which will put some pressure on lens technology. At present, the monetary capital and other current assets of lance technology account is 6.93 billion yuan, and the short-term loan is as high as 9.475 billion yuan. Although lens technology put forward a fixed increase plan of 15 billion yuan in July, it has not yet been completed. In this case, a cash purchase of 9.9 billion yuan will cause greater pressure on the company’s capital. The main business of lens technology is glass, sapphire, ceramics, plastic and metal small parts processing, which is in the upstream of Kesheng technology and profitable technology. In the first half of 2020, the performance of lens technology showed an explosive growth, and its net profit increased by 1322% year on year, reaching 1.928 billion yuan. In this context, it is not unreasonable for LANs technology to continue its acquisition. < / P > < p > another reason for Lance’s acquisition may be related to apple. “After the integration of the company and the target company, the company can better provide customers with comprehensive solutions for vertical integration,” LANs said in the announcement. Through this transaction, the company will accelerate the realization of the medium and long-term goal of providing customers with a more perfect product portfolio, lay a solid foundation for the company to further expand its business to the downstream supply chain, continuously enhance the company’s comprehensive competitiveness and profitability, and greatly enhance the company’s industry status. ” < p > < p > lens technology mainly provides cover glass for apple. Industry analysis said that the so-called “downstream supply chain business development” and apple is not unrelated. At present, domestic manufacturers are “taking” apple supply chain related companies. In July, lichen precision (002475. SZ) announced the acquisition of Weichuang’s OEM factory in mainland China for 3.3 billion yuan. < p > < p > according to the annual report of Kecheng technology, the current profit and loss of Kesheng technology in 2019 are NT $169 million and NT $263 million respectively. However, the announcement of lens technology shows that the net profits of Kesheng technology and Keli technology in 2019 are 53.848 million yuan and 37.039 million yuan respectively, which is quite different from the annual report of Kecheng technology. < / P > < p > due to certain differences between the accounting standards of the mainland and Taiwan, we are not sure whether the inconsistency is caused by the difference in accounting standards, which needs further explanation from lens technology.