Preemptive limit-up! Huashengchang plans to acquire 100% equity of Galiante, which specializes in optical communication modules and optical chip testing.

【Introduction】Huasheng Chang plans to acquire 100% equity of Jialante, which focuses on optical communication modules and optical chip testing.

On the evening of February 27, Huasheng Chang announced that the company intends to acquire 100% of Shenzhen Jialante Technology Co., Ltd. (hereinafter referred to as Jialante) with cash, with the overall valuation temporarily set at 460 million yuan.

Jialante specializes in optical communication modules and optical chip testing within the instrumentation testing and measurement industry. Huasheng Chang aims to expand its industry layout horizontally through this transaction and seek new growth points.

At the close on February 27, Huasheng Chang’s stock price was 28.97 yuan per share, up 9.98%, with a total market value of 5.487 billion yuan.

Expected to constitute a related-party transaction

Jialante’s founding shareholders will hold 5% of Huasheng Chang

According to the announcement, recently, Huasheng Chang signed an “Equity Acquisition Intent Agreement” with Jialante’s shareholders Yu Xinwen, Zhang Songwei, Lin Xiaolong, and Shi Kaigui, agreeing that Huasheng Chang intends to acquire 100% of Jialante with cash.

The chart shows Jialante’s equity structure source: Huasheng Chang’s latest announcement.

Meanwhile, Huasheng Chang’s controlling shareholder and actual controller Yuan Jianmin signed a “Share Transfer Agreement” with Jialante’s founding shareholder Yu Xinwen, agreeing that Yuan Jianmin will transfer 5% of Huasheng Chang’s shares to Yu Xinwen through an agreement transfer.

Before this transaction, the counterpart and Huasheng Chang had no related-party relationship. After the transfer of shares is completed, Yu Xinwen will hold 5% of Huasheng Chang’s shares. The restricted period for the transferred shares is 48 months from the completion of the share transfer registration, with phased unlocking.

According to the “Stock Listing Rules of the Shenzhen Stock Exchange” regarding the definition of “related parties” within the next twelve months, Yu Xinwen is considered a related party of Huasheng Chang, and this transaction is expected to constitute a related-party transaction.

The “Share Transfer Agreement” stipulates that the transfer of shares is conditional upon the completion of the acquisition of 100% of Jialante. If Huasheng Chang cannot acquire 100% of Jialante for any reason, the transfer of shares will not be implemented.

Poor performance in the first three quarters of 2025

Seeking new growth points through mergers and acquisitions

Huasheng Chang announced that the management believes that Jialante’s industry has significant growth potential. This transaction will help the company strategically deploy in related fields and enhance overall competitiveness and profitability.

Huasheng Chang was listed on the Shenzhen Stock Exchange on April 15, 2020, focusing on the research, development, production, and sales of testing and measurement instruments.

Huasheng Chang’s net profit attributable to the parent and net profit after non-recurring gains and losses have shown continuous growth from 2022 to 2024, but in the first three quarters of 2025, they decreased by 40.94% and 39.92%, respectively, year-on-year.

Jialante focuses on optical communication modules and optical chip testing within the instrumentation testing and measurement industry. Although Huasheng Chang has not disclosed Jialante’s past performance, based on the expected average net profit over the next three years, the valuation of 100% of Jialante is temporarily set at 460 million yuan.

The “Equity Acquisition Intent Agreement” states that the two parties agree that from 2026 to 2028, the cumulative net profit (the lower of pre- and post-non-recurring net profit attributable to the parent) of Jialante will not be less than 115 million yuan, with an annual target net profit of 38.33 million yuan.

(Source: China Fund News)