Yinlun Co., Ltd. Acquires Shenlan Co., Ltd. to Lay Out Core Technologies of Digital Energy System Modules

According to public information, Yinlun Co., Ltd. (002126.SZ) announced on November 27, 2025 its intention to acquire more than 55% equity of Shenlan Co., Ltd. (Shenzhen Shenlan Electronics Co., Ltd.) for approximately 132.57 million yuan [1]. Currently, the acquisition is under review by regulatory authorities [2].

The core purpose of Yinlun’s acquisition is to integrate underlying technologies such as controller, drive integrated circuit hardware and related embedded system software, so as to strengthen the company’s core competitiveness in the field of digital energy system modules. Relying on Yinlun’s capital advantages and industrial platform, Shenlan will further expand capital operation channels and obtain more flexible development space [1].

Shenlan focuses on the R&D, production and sales of HVAC controllers and variable frequency drives, and its core products include controllers, drive integrated circuit hardware and related embedded system software [1]. These technologies exactly fill Yinlun’s gaps in electronic control, software and algorithm fields. Yinlun’s long-term development goal is to have system module and mechatronics manufacturing integration capabilities, and electronic control, software and algorithms are the core components of system modules [1].

Through this acquisition, Yinlun will achieve in-depth control over core technologies upstream and downstream of the thermal management industry chain. Shenlan’s technical accumulation in the controller and drive fields will effectively synergize with Yinlun’s high-quality customer resources in the thermal management industry, helping to bind key customers and connect upstream and downstream of the industrial chain [1]. This vertical integration will significantly reduce the production cost of related products and improve the overall supply chain efficiency.

Yinlun is upgrading from a single heat exchanger component supplier to a system integration supplier. Its new energy products have formed a “1+4+N” product system (1 refers to new energy thermal management system, 4 refers to front-end cooling module, refrigerant coolant integration module, air conditioning box module and vehicle electronic cooling system, N refers to various components) [3]. Shenlan’s controller technology will help the company upgrade its product line from components to integrated modules, significantly increasing the supporting value volume and comprehensive competitiveness [3].

Technology integration will achieve two major cost optimizations: on the one hand, reduce repeated R&D investment through complementary technical advantages; on the other hand, after Shenlan’s underlying technologies are integrated into Yinlun’s system, scale effects can be realized to reduce unit production cost [1].

Yinlun also clearly mentioned multiple risk factors in the announcement [1]:

1. Approval Uncertainty
   : As the target company is a NEEQ-listed company with scattered shareholders and many transferors, it needs to be reviewed and confirmed by the NEEQ
2. Integration Risk
   : There are uncertainties in the further integration of culture and business philosophy during governance structure adjustment and team integration
3. Goodwill Impairment Risk
   : There is a difference between the equity value at the time of acquisition and Shenlan’s net assets in 2024. If the target company’s profitability declines, goodwill impairment may occur

Yinlun’s acquisition of Shenlan is an important layout of the company’s “mechatronics and software integration” strategy. By integrating underlying technologies such as controllers, drives and embedded software, it will effectively improve the technical system in the thermal management field and enhance core competitiveness. The technical synergy effects are mainly reflected in four dimensions: core technology complementarity, industrial chain integration, system integration capability enhancement and cost optimization. However, potential risks such as approval progress, team integration and goodwill impairment need to be noted.

[1] Announcement of Zhejiang Yinlun Machinery Co., Ltd. on Purchasing Shares and Increasing Capital of Shenzhen Shenlan Electronics Co., Ltd. and Overseas Investment (http://static.cninfo.com.cn/finalpage/2025-11-28/1224831735.PDF)

[2] Yinlun Co., Ltd.: The Company’s Acquisition of Shenlan Co., Ltd. is Still Under Regulatory Review - Sina Finance (https://finance.sina.com.cn/stock/relnews/dongmiqa/2025-12-25/doc-inhcyrur3743204.shtml)

[3] Research Report on Yinlun Co., Ltd. (002126.SZ) (https://pdf.dfcfw.com/pdf/H3_AP202410311640634393_1.pdf)