Zhongying Technology plans to acquire no less than 51% equity of Yingzhong Electric

This article is reprinted from: Securities Times

Source: Securities Times 2026-02-28 A004 Edition

Author: Mei Shuang

Securities Times Reporter Mei Shuang

Zhongying Technology (300936) announced on February 27 that the company and shareholders of Yingzhong Electric, Yu Yingzhong, Zhu Lijuan, and Yu Biao, signed an “Letter of Intent,” proposing to acquire no less than 51% of Changzhou Yingzhong Electric Co., Ltd. (hereinafter referred to as “Yingzhong Electric”) with cash and to obtain controlling interest. The specific acquisition ratio will be subject to the formal agreement. After the completion of this transaction, Yingzhong Electric will become a controlling subsidiary of the company and will be consolidated into the company’s financial statements.

Zhongying Technology stated that this transaction is still in the preliminary planning stage, and key elements such as the transaction plan and price still need further discussion and negotiation. This acquisition is expected to constitute a major asset restructuring.

Before this transaction, Yu Yingzhong, Yu Biao, and Zhu Lijuan held 60%, 30%, and 10% of Yingzhong Electric respectively. Yu Yingzhong and Zhu Lijuan are spouses, and Yu Biao is the son of Yu Yingzhong and Zhu Lijuan. Yu Yingzhong is brothers with Yu Weizhong, one of the actual controllers of the listed company. Therefore, this transaction constitutes an related-party transaction. This transaction does not involve the issuance of shares by the listed company, does not constitute a reorganization or listing, and will not result in a change of the company’s controlling shareholder or actual controller.

According to available information, Yingzhong Electric was established in March 2004 with a registered capital of 10 million yuan. The company is a professional supplier of insulating fiber materials and their molded products. After years of industry development, its products now cover all voltage levels of power transmission and transformation equipment, including low, medium, high, ultra-high, and extra-high voltage AC/DC.

Zhongying Technology stated that if the transaction proceeds smoothly, the company will gain control of the target company, which will be included in the company’s consolidated financial statements. This will have a positive impact, help improve the company’s asset quality and overall competitiveness, expand business scale and profitability, and create value for all shareholders.

At the same time, Zhongying Technology reminded that this transaction is still in the initial planning stage, and there are uncertainties. External environmental changes could alter transaction conditions, potentially leading to termination of the deal.

Zhongying Technology focuses on the communications sector, with downstream applications mainly in communication base stations and mobile phone heat dissipation. In the field of communication materials, the company mainly produces high-frequency copper-clad laminates and VC heat sinks. In semiconductor packaging materials, its wholly owned subsidiary Saiken Xuzhou specializes in the research and production of lead frames, which are core materials for semiconductor packaging and are widely used in communication equipment, automotive electronics, smart home devices, and other high-tech fields. According to Zhongying Technology’s earnings forecast, the company expects net profit attributable to shareholders for 2025 to be between 1.8 million and 2.7 million yuan, a year-on-year decrease of 91.47% to 94.31%.

Zhongying Technology stated that during the reporting period, the company’s operating income decreased compared to the previous period, and net profit after deducting non-recurring gains and losses declined significantly, mainly due to macroeconomic impacts, weak domestic consumer confidence, and intensified industry competition, which led to a decline in overall business performance.