Zhongyan Dadi acquires 60% of PCB tool maker Xinhuanyu for 240 million yuan
Zhongyan Dadi, a Chinese geotechnical engineering firm, announced on September 27 it will acquire a 60% stake in Shenzhen Xinhuanyu Precision Technology Co., Ltd. for a total of 240 million yuan, combining a 90 million yuan share purchase and a 150 million yuan cash injection. Xinhuanyu, a specialized PCB drill bit and milling cutter manufacturer with over 30 patents and 80 million annual drill bit capacity, will become a controlled subsidiary. The deal includes a performance commitment for cumulative net profit of at least 100 million yuan from 2026 to 2028. Zhongyan Dadi, which reported a first-half 2026 net loss of 19.9 million yuan, aims to cultivate the PCB drill bit business as a second growth curve.
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Zhongyan Dadi Signs Agreement to Acquire Xinhuanyu, Cultivating PCB Drill Bit Business as Second Growth Curve
Zhongyan Dadi (中岩大地) announced via its official WeChat account that its fourth board of directors' tenth meeting approved the acquisition of Shenzhen Xinhuanyu Precision Technology Co., Ltd. (鑫寰宇). The company has signed a share acquisition agreement, share transfer agreement, performance commitment and compensation agreement, and share pledge agreement with the target company and its shareholders. The transaction does not constitute a related-party transaction or a major asset restructuring, and does not require shareholder approval. The acquisition combines cash and capital increase, giving Zhongyan Dadi a 60% stake in Xinhuanyu, which will become a controlled subsidiary and be consolidated into its financial statements. Xinhuanyu is a specialized and innovative enterprise focused on PCB precision drill bits and milling cutters, with products including PCB and FPC drill bits, coated drill bits, diamond tools, and milling cutters. It holds over 30 patents and has an annual production capacity of 80 million PCB drill bits, with a minimum batch production diameter of 0.03mm and an aspect ratio of 50 times. Zhongyan Dadi plans to steadily develop its core geotechnical engineering business while cultivating the PCB drill bit business as a second growth curve to improve its business structure and anti-cyclical capability.
Read sourceZhongyan Dadi acquires Xinhuanyu for 240 million yuan, enters PCB drill bit sector for second growth curve
Zhongyan Dadi (003001) announced on September 27 that it has signed agreements to acquire a 60% stake in Shenzhen Xinhuanyu Precision Technology Co., Ltd. for a total of 240 million yuan, marking its entry into the PCB precision drill bit sector. The acquisition uses a combination of equity transfer and cash capital increase, with 90 million yuan for a 36% stake and 150 million yuan in cash for an additional 37.5% stake. The deal includes a performance commitment from founding shareholders Li Kunlun and Weijing Investment, who guarantee cumulative net profit of at least 100 million yuan from 2026 to 2028, with annual minimums of 5 million, 30 million, and 45 million yuan respectively. The article notes that the PCB drill bit market is benefiting from the AI computing wave, with global market size projected to grow from 6 billion yuan in 2025 to 9.1 billion yuan by 2029, a CAGR of about 15%. Zhongyan Dadi aims to build a dual-main-business structure, using precision manufacturing to complement its core geotechnical engineering business.
Zhongyan Dadi Signs Agreement to Acquire Xinhuanyu, Cultivating PCB Drill Bit Business as Second Growth Curve
According to a report from Shanghai Securities News, Zhongyan Dadi Jinggong Technology has signed an equity transfer agreement to acquire a 60% stake in Xinhuanyu through a combination of cash acquisition and capital increase. After the transaction, Xinhuanyu will become a controlled subsidiary of Zhongyan Dadi and be consolidated into its financial statements. Xinhuanyu is a Chinese company specializing in PCB and FPC drill bits, coated drill bits, diamond tools, and milling cutters, holding over 30 patents. It has an annual production capacity of 80 million PCB drill bits, with the smallest batch-shipped diameter reaching 0.03mm and an aspect ratio of up to 50 times. The company also provides coating process services. Zhongyan Dadi stated that while continuing to steadily develop its core geotechnical engineering business, it will focus on cultivating the PCB drill bit business as a second growth curve to optimize its business structure and enhance its ability to withstand economic cycles, aiming to create sustained and genuine value for shareholders.
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Zhongyan Dadi to Acquire 60% Stake in PCB Tool Maker Xinhuan Yu for 240 Million Yuan
Zhongyan Dadi (SZ003001), a Chinese geotechnical engineering firm focused on nuclear and hydropower projects, announced on September 27 that it will spend a total of 240 million yuan to acquire a 60% stake in Shenzhen Xinhuan Yu Precision Technology Co., Ltd., a specialized manufacturer of PCB precision drill bits and milling cutters. The acquisition combines a 90 million yuan share purchase from existing shareholders and a 150 million yuan cash injection based on a pre-investment valuation of 250 million yuan. Xinhuan Yu, a 'specialized and new' enterprise, has an annual production capacity of 80 million PCB drill bits and holds over 30 patents. The sellers have committed that the target company's cumulative net profit (excluding non-recurring items) for 2026-2028 will be no less than 100 million yuan, with annual minimums of 5 million, 30 million, and 45 million yuan respectively. The deal comes as Zhongyan Dadi's first-half 2026 revenue fell 49.65% year-on-year to 182 million yuan, and it posted a net loss of 19.9 million yuan. The company aims to diversify into the PCB upstream sector to cultivate new growth drivers, but analysts note the acquisition's success as a second growth curve remains unproven.
Read sourceZhongyan Dadi to Acquire 60% Stake in Xinhuanyu, Expanding into PCB Drill and Milling Tools
Zhongyan Dadi (003001) announced on September 27 that it plans to acquire a 60% stake in Xinhuanyu through a combination of equity purchase and capital increase. The acquisition uses differentiated pricing: shareholders who agree to performance commitments will transfer 20.2105% of Xinhuanyu's equity for 64.737 million yuan, while non-committing shareholders will transfer 15.7895% for 25.2632 million yuan. The total consideration for the initial 36% equity stake (diluted to 22.5% post-increase) is 90 million yuan. Based on a pre-investment valuation of 250 million yuan, Zhongyan Dadi will then inject 150 million yuan in cash to obtain an additional 37.5% stake. Xinhuanyu is a specialized and innovative domestic company focused on precision PCB drill bits and milling cutters, including PCB and FPC drill bits, coated drill bits, diamond tools, and milling cutters. The transaction will expand Zhongyan Dadi's business into the PCB drill and milling tool sector, supporting its strategy to participate in PCB industry upgrades.
Read sourceZhongyan Dadi Plans Cross-Sector Entry into PCB Upstream with Acquisition
Zhongyan Dadi, a Chinese listed company focused on geotechnical engineering for nuclear and hydropower projects, announced plans to acquire a 60% stake in Xinhuanyu, a PCB precision drill and milling tool manufacturer, for a total consideration of 2.4 billion yuan (9000 million yuan for equity transfer and 1.5 billion yuan cash injection). The deal, approved by the board on September 24, values Xinhuanyu at a pre-investment valuation of 2.5 billion yuan. Xinhuanyu, a specialized and innovative company, reported 2025 revenue of 39.66 million yuan and net profit of 1.73 million yuan. The acquisition includes a performance commitment: Xinhuanyu's cumulative net profit for 2026-2028 must be at least 100 million yuan, with specific annual targets. Zhongyan Dadi's first-half 2026 revenue fell 49.65% year-on-year to 182 million yuan, and it posted a net loss of 19.9 million yuan. The company aims to diversify into PCB industry upgrades to create new growth drivers, but analysts caution that the acquisition's success as a second growth curve remains uncertain due to integration risks and potential goodwill impairment.
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