Andeli Juice to acquire PCB material maker Yongqiang Technology

Andeli Juice (605198.SH) has announced plans to acquire a 62.06% controlling stake in Yongqiang Technology, a Chinese supplier of printed circuit board (PCB) upstream materials, for approximately 793 million RMB in cash. The transaction values Yongqiang Technology at an estimated total of 1.278 billion RMB.

Through this acquisition, the juice producer aims to diversify its industrial footprint and establish a second growth curve by entering the semiconductor materials sector. Yongqiang Technology specializes in high-frequency and high-speed interconnection materials for integrated circuits, serving clients in the PCB and server industries.

The deal includes aggressive performance commitments from shareholders Jiangqi He and Qiang Yuan. They have pledged that Yongqiang Technology will achieve net profits of at least 23 million RMB in 2026, 42 million RMB in 2027, and 70 million RMB in 2028, totaling no less than 135 million RMB over the three-year period. If these targets are not met, a compensation mechanism will be triggered.

This move follows a failed attempt by Yanjiang Shares to acquire Yongqiang Technology earlier this year due to disagreements over valuation and performance targets. The Shanghai Stock Exchange has issued regulatory inquiries regarding the transaction, focusing on the commercial rationality of the cross-sector move, the valuation premium, and the sustainability of the target company's earnings, given its recent history of losses.