Zhongyan Dadi announced plans to acquire a 60% stake in PCB drill bit manufacturer Xinhuanyu through a combination of cash purchase and capital increase, with a total transaction consideration of 240 million yuan. Under the framework agreement, Zhongyan Dadi will use Xinhuanyu's pre-investment valuation of 250 million yuan as the basis, paying 90 million yuan to acquire a 36% stake from existing shareholders, and then injecting an additional 150 million yuan to obtain a 37.5% stake after the capital increase. Xinhuanyu has made a performance commitment of total non-recurring net profit of no less than 100 million yuan from 2026 to 2028, but its 2025 revenue was 39.13 million yuan with a net loss of 1.31 million yuan, and net profit for the first five months of this year was 2.75 million yuan. Zhongyan Dadi expects a net loss attributable to shareholders of 12 million to 18 million yuan in the first half of the year. The company stated that this cross-border move is a strategic plan to cultivate a second growth curve, and noted that the payment has been structured with phased mitigation measures. As of the end of the first quarter, it had monetary funds of 184 million yuan and trading financial assets of 417 million yuan, indicating ample liquidity. Leading PCB drill bit companies point out that new entrants face barriers such as difficulty in obtaining production equipment and long talent training cycles, and demand in the coming period will still be mainly absorbed by the leading players.
Zhongyan Technology Co LtdAcquiring 60% stake in Xinhuanyu for 240 million yuan, a strategic M&A to cultivate second growth curve.
China Tungsten and Hightech Materials Co LtdBeing acquired at 250 million yuan valuation with performance commitment, providing capital and growth prospects.