Flyco Founder Li Gaiteng Acquires Shanghai Yahong for Nearly 900 Million Yuan, First A-Share Takeover

By: Guan Yue | Source: Times Weekly

Li Gaiteng, who left a mountain village in Wenzhou with just 41 yuan in his pocket, spent more than two decades building Feike Electronics (603868.SH) into China’s “King of Electric Shavers.” Now, he plans to spend nearly 900 million yuan to acquire a struggling Shanghai-based precision manufacturing company whose revenue has declined in recent years and whose equity has changed hands multiple times over the past five years.

On the evening of September 16, Shanghai Yahong (603159.SH) announced that Shanghai Feike Investment Co., Ltd. (“Feike Investment”) intends to acquire 40.20% of the company’s shares through a two-tier structure of “share transfer agreement + partial tender offer,” at a total consideration of approximately 900 million yuan. Upon completion, Feike Investment will become the new controlling shareholder, replacing Hainan Ningsheng Tourism Group Co., Ltd. (“Ningsheng Group”). The actual controller will change from Sun Lin to Li Gaiteng.

Feike Investment is 98% owned by Li Gaiteng and is registered at the same address as Feike Electronics’ headquarters. For Li, this marks the first time in his business career that he will take control of an A-share listed company.

On one side is Feike Electronics, whose core business growth has peaked and revenue has declined for two consecutive years. On the other is Shanghai Yahong, whose revenue has stagnated over the past decade since its listing, recorded its first-ever loss in 2025, and is now seeking a change of control for the second time this year.

Two companies facing growth bottlenecks are now joining forces, sparking market expectations of synergies. However, the secretary of Feike Electronics’ board of directors stated bluntly that “the two companies currently have no business ties.” A representative from Shanghai Yahong told Times Weekly that the acquisition “was finalized after multiple rounds of complex negotiations.” The commitment in the announcement that “no assets will be injected within 36 months” adds further suspense to the deal’s future direction.

On September 17, Shanghai Yahong resumed trading and opened near its daily limit up, but fluctuated downward during the session, closing at 22.95 yuan per share, down 3.33%, with a total market value of approximately 3.2 billion yuan. Feike Electronics, meanwhile, rose 5.17% to close at 32.54 yuan per share, with a total market value of approximately 14.1 billion yuan.

Image source: FinScope

Feike’s Core Business Growth Peaks; Li Gaiteng Crosses Sectors to Take Over Shanghai Yahong

Shanghai Yahong announced that its controlling shareholder Ningsheng Group, along with shareholder Xie Yaming and his concert party Xie Yue, have signed a share transfer agreement with Feike Investment. The three parties will collectively transfer 29.99% of the company’s shares to Feike Investment at a price of 21.43 yuan per share, for a total consideration of approximately 899.8 million yuan.

After the share transfer is completed, Feike Investment will also launch a partial tender offer to all other shareholders at the same price, covering 10.21% of Shanghai Yahong’s total share capital. Upon completion of both transactions, Feike Investment will hold a total of 40.20% of Shanghai Yahong’s shares.

Feike Investment, the entity acquiring control of Shanghai Yahong, is not a newly established investment platform.

According to Tianyancha, Feike Investment was founded in February 2011 with a registered capital of 100 million yuan. Its registered address is No. 555, Guangfulin East Road, Songjiang District, Shanghai — the same address as Feike Electronics’ headquarters. Its shareholding structure is highly concentrated: Li Gaiteng holds 98%, and Chen Yufeng holds 2%.

Li Gaiteng is a classic example of a self-made entrepreneur from humble beginnings. Public records show he was born in 1972 to a farming family in Yongjia County, Wenzhou. After graduating high school, he was unable to attend college due to poverty. With just 41 yuan, he left home to work, taking jobs as a warehouse keeper, motorcycle repairman, and sunglasses vendor. Around 1995, he began working at a shaver factory in Wenzhou, soldering circuit boards — his entry into the personal care small appliance sector.

In 1999, Li officially founded the Feike brand and led his team to develop China’s first dual-head rotary shaver. Over the next decade, Feike captured a significant share of the electric shaver market through competitive pricing and distribution, earning Li the nickname “King of Electric Shavers.”

In April 2016, Feike Electronics was listed on the main board of the Shanghai Stock Exchange with an IPO price-to-earnings ratio of approximately 16 times. On its first trading day, its market value exceeded 11.3 billion yuan, making it the first A-share listed company in the personal care appliance sector. Feike later expanded its product line to include hair dryers, electric toothbrushes, steam irons, and humidifiers. However, in recent years, Feike’s own business performance has been uneven.

Financial data shows that Feike Electronics’ revenue peaked at 5.06 billion yuan in 2023, then declined to 4.147 billion yuan in 2024, and further dropped to approximately 3.861 billion yuan in 2025 — two consecutive years of year-on-year decline. In the first half of 2026, the company reported revenue of 2.019 billion yuan, down 4.56% year-on-year.

Against the backdrop of slowing core business growth, Li Gaiteng’s move to acquire control of Shanghai Yahong marks his first attempt to enter the A-share capital market.

According to Tianyancha, Feike Electronics previously invested in Puremi Technology (Shanghai) Co., Ltd., a Xiaomi ecosystem company, in April 2020. Puremi was listed on the National Equities Exchange and Quotations (NEEQ) in February 2026.

Regarding the purpose of the acquisition, the announcement states that Feike Investment will “improve its industrial layout, optimize its business structure, enhance and improve the asset quality of the listed company, and achieve diversified business development.” However, Li Gaiteng and Feike Investment have explicitly committed that within the next 36 months, they have no plans to inject assets into the listed company or to cause the company to undergo a major asset restructuring.

On the afternoon of September 17, Times Weekly contacted Guo Jiaguang, secretary of Feike Electronics’ board of directors. He revealed that the acquisition “currently has no impact on Feike Electronics other than adding a related party,” and that the two companies currently have no business ties.

However, Jiang Han, a senior researcher at Pangoal Institution, told Times Weekly on September 17 that there is some potential for synergy between Feike Electronics and Shanghai Yahong, but it is far from being directly convertible into performance improvements. “The downstream customer systems of the two companies are completely different. Capacity reuse and order conversion will require a long period of磨合 (integration). It will be difficult to rely solely on mold synergies to significantly improve performance in the short term.”

Shanghai Yahong Faces Fundamental Pressure; Second Control Change Attempt This Year

Compared to the clear industrial background of the acquirer, Shanghai Yahong is under fundamental pressure and has experienced multiple ownership changes.

According to Tianyancha, Shanghai Yahong was founded in April 1997 and is located in Fengxian District, Shanghai. It was listed on the main board of the Shanghai Stock Exchange in August 2016. Its main business includes the R&D, design, and manufacturing of precision plastic molds, as well as the production of injection-molded products and component assembly services. These products are primarily used in mid-to-high-end automotive instrument panels, car seats, electronic equipment, and microwave ovens.

In addition, Shanghai Yahong acquired Shanghai Musheng Industrial Co., Ltd. in 2008, which specializes in SMT (Surface Mount Technology) for electronic products — mounting electronic components onto the surface of printed circuit boards or other substrates. Musheng is an important subsidiary of Shanghai Yahong.

According to the 2025 annual report, revenue from injection-molded products, SMT products, and mold products accounted for 59.07%, 38.56%, and 1.01% of total revenue, respectively.

However, since its listing, Shanghai Yahong has not delivered sustained growth.

Wind data shows that from 2012 to the present, Shanghai Yahong’s annual revenue has remained in the range of 400 million to 700 million yuan. Revenue peaked at 678 million yuan in 2021 and has since declined. In 2025, revenue fell 14.87% year-on-year to 418 million yuan. In the first half of 2026, revenue fell 14.26% year-on-year to 174 million yuan.

Image source: Wind

Furthermore, Shanghai Yahong recorded its first annual loss since listing in 2025, with a net profit of -5.2156 million yuan. The loss continued into the first half of 2026, with a net profit of -3.7937 million yuan, indicating significant operational pressure.

A representative from Shanghai Yahong explained that the company’s performance pressure is due to a downturn in its industry, declining orders, falling prices for its core products, and rising raw material costs.

Compounding the performance pressure, the company’s control has changed hands multiple times in recent years.

Shanghai Yahong was originally controlled by its founders, Xie Yaming and his son Xie Yue. In November 2020, Ningsheng Group signed a share transfer agreement with Xie Yaming and Xie Yue. In February 2021, Sun Lin officially took over from the founders, and Ningsheng Group became the controlling shareholder. At that time, Ningsheng Group’s main business was domestic tourism, inbound tourism, and tourism project investment — with no obvious connection to Shanghai Yahong’s precision manufacturing industry.

After taking control, the equity arrangements between Ningsheng Group and the founders were repeatedly adjusted.

In December 2022, Xie Yaming transferred 5% of the company’s shares to Ningsheng Group via a share transfer agreement, with a total transaction value of approximately 126 million yuan. Xie Yaming and Xie Yue also agreed to waive voting rights for approximately 33% of the company’s total shares to maintain Ningsheng Group’s controlling position. In October 2023, Xie Yaming transferred another 13.986 million shares (9.99% of total share capital) to Ningsheng Group, and the proportion of waived voting rights was adjusted to 23.01%. After multiple rounds of transfers and voting rights arrangements, Ningsheng Group’s final shareholding was fixed at 29.99%.

In this transaction, the founders’ exit plan is more complete.

According to the announcement, after the share transfer is completed, Xie Yaming will retain only approximately 0.06% of shares (most of which have already been committed to the tender offer), while Xie Yue will retain approximately 4.23% and has stated he will not participate in the tender offer. For Ningsheng Group, which took control in February 2021 and plans to exit in September 2026, its holding period will be less than five years.

Notably, this is Shanghai Yahong’s second attempt to change control this year.

According to company announcements, in June 2026, Shanghai Yahong suspended trading because its controlling shareholder was planning a change of control. On June 22, the company announced the termination of the plan and resumed trading the following day, citing the failure of the transaction counterparty to reach an agreement on certain details.

The secondary market reacted sharply. On the first day of resumption, Shanghai Yahong’s shares hit the daily limit down, followed by another limit-down the next day, with its market value briefly falling below 3 billion yuan.

Several details of the current acquisition are worth noting:

1. Two-tier structure of “share transfer agreement + partial tender offer”: Feike Investment will first acquire 29.99% of shares through a share transfer agreement, then launch a partial tender offer for 10.21%, ultimately holding 40.20%. Jiang Han noted that this two-tier structure avoids including all outstanding shares in the tender offer, “preventing the capital demand from reaching an uncontrollable level.” He added that it is “not designed solely for compliance purposes” — the share transfer secures the base, while the tender offer allows Feike to “consolidate control at a lower cost without having to passively compete for shares in the secondary market.”

1. Long lock-up period and strong commitment constraints: Feike Investment and its actual controller Li Gaiteng have committed not to transfer the acquired shares for 60 months from the date of completion of the transfer, and not to pledge the relevant shares for 36 months.

1. Financing structure: The total consideration for the acquisition is approximately 900 million yuan, with a committed loan amount of no more than 840 million yuan. Under current regulations, the maximum proportion of acquisition loans for controlling acquisitions is 70% of the transaction price, with equity capital required to be at least 30%. In the Detailed Equity Change Report, Shanghai Yahong further disclosed that the funds for the share transfer will come from legally compliant自有资金 (own funds) and acquisition loans. Own funds will account for no less than 50% of the total. If the acquisition loan is not ultimately approved, the acquirer will use its own funds to cover the transaction price. The acquirer has the ability to perform the transaction.

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