Yanjiang (300658): Cross-Industry Strategic Acquisition Generates Strong Market Enthusiasm

On the previous trading day, Yanjiang Co., Ltd. (300658) recorded an outstanding performance, closing with an 11.68% increase at a price of 14.82 yuan per share, with a market capitalization reaching 4.9 billion yuan.

The Announcement of the Major Asset Restructuring

On the evening of January 4, 2026, Yanjiang officially announced its intention to acquire control of Ningbo Yongqiang Technology Co., Ltd. through a combination of share issuance and cash payment, supported by capital raising. This operation represents a significant asset restructuring that has attracted market attention.

Due to the complex nature of the transaction and remaining uncertainties, the stock will be suspended from trading starting from the market open on January 5, 2026. The company has stated that it will disclose the full operational plan within a maximum of 10 trading days.

On December 31, 2025, Yanjiang had already reached a letter of intent with JIANGQIHE (the actual controller of Yongqiang Technology), its concerted shareholders QIANGYUAN and Ningbo Yuanlu Zai Technology Partnership. However, the matter remains in planning, with specific percentages of acquisition, involved parties’ composition, and operational details still subject to further negotiations.

Who is Yongqiang Technology: A Prominent Player in the Semiconductor Sector

Founded in 2019, Yongqiang Technology has established itself as a leader in the development and production of IC substrates, high-end display substrates, and high-speed, high-frequency substrates. Its products are widely used in emerging sectors such as 5G/6G communications, artificial intelligence, data centers, automotive Internet of Things, and innovative infrastructure.

The company’s high-end products have already received performance certification from tech giants like Intel, Huawei, Inspur, Sugon, New H3C, and Accelink. Thanks to this solid market position, Yongqiang Technology has repeatedly attracted the interest of institutional investors, completing several funding rounds with a valuation that has already exceeded 1 billion yuan.

A Cross-Industry Strategic Move

In its core business, Yanjiang mainly focuses on the research, production, and sale of materials for the surface of disposable hygienic products. The acquisition of Yongqiang Technology thus represents an important diversification into a completely new sector.

Moreover, the company had already clearly indicated its strategic intentions. In the 2024 annual report, Yanjiang explicitly stated that one of its main goals for 2025 would be “to choose carefully, cultivate, and develop a second business sector,” indicating a willingness to continue exploring emerging industrial opportunities.

The Strength of Yanjiang’s Core Business

In the disposable hygienic products segment, Yanjiang holds a position of absolute prominence. The company’s main products include perforated 3D non-woven fabrics and perforated PE membranes, used as surface materials for feminine hygiene products, baby diapers, and other disposable items. Its customer base includes global leaders such as Procter & Gamble, Kimberly-Clark, Hengan, and other prestigious national and international brands.

In recent years, Yanjiang has maintained a stable growth trajectory in its core business. In the first nine months of 2025, the company achieved revenues of 1.295 billion yuan, up 22.99% compared to the same period last year; net profit reached 42.5018 million yuan, an increase of 27.95%. Notably, the third quarter showed a net profit of 16.6626 million yuan, an explosive growth of 209.1% year-on-year.

Global Expansion and New Production Capacities

Through product updates aimed at foreign markets and the global distribution of production capacity, Yanjiang is gradually expanding its market share and profitability flexibility. Currently, the company operates local plants in Egypt, the United States, and India. Since 2022, its subsidiaries in Singapore, “Singapore Holdings” and “Yanjiang International,” have progressively launched commercial operations according to the established strategy, achieving positive results.

The company has announced that major foreign clients are updating surface materials in their production processes, gradually replacing them with mid-to-high-end products. The Egyptian subsidiary’s hot production line has a theoretical capacity of 12,000 tons per year, with an already verified capacity of about 10,000 tons, aiming to reach full production in the first half of 2026. The US subsidiary’s production line is expected to enter commercial phase starting in 2026.

Improving Profit Margins

On the profitability front, the net margins of the parent company in China and the Egyptian subsidiary showed year-on-year increases during the first three quarters of 2025, with even better performance for the Egyptian subsidiary. Operations of the US and Indian subsidiaries are currently breakeven, positioning favorably for subsequent profit phases.