Strategic Analysis of Minibao Optoelectronics' Acquisition of Xiamen Xizhi Precision and Jiangxi Maida: Expanding from LED Lighting to PCB Consumables Sector

Based on the collected information, I will conduct a systematic and comprehensive analysis for you.

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Minibao Optoelectronics (Stock Code: 301362.SZ) issued an announcement on January 18, 2026, stating that the company is planning to acquire 100% equity interests in Xiamen Xizhi Precision Technology Co., Ltd. and Jiangxi Maida Intelligent Technology Co., Ltd. by way of issuing shares and paying cash. The counterparty to the transaction is initially identified as Xiamen Maida Intelligent Technology Co., Ltd., the controlling shareholder of the target companies. The company’s shares have been suspended from trading since the market opened on January 19, 2026, and the suspension is expected to last no more than 10 trading days [1][2][3].

Xiamen Xizhi Precision and Jiangxi Maida are high-tech enterprises focusing on the R&D, production, and sales of

, and have deep roots in the core consumables segment of PCB manufacturing. Their core products are tungsten carbide micro-drills used in the processing of PCB, FPC, IC substrates, and AI PCBs, with product sizes ranging from 0.09mm to 0.35mm, and they are particularly specialized in the R&D and manufacturing of ultra-small diameter micro-drills below 0.20mm [1][2].

As a dedicated core consumable for PCB manufacturing, the core function of PCB micro-drills is to precisely drill holes through the connection points between circuit board layers to build point-to-point pathways, enabling stable connection and serial interconnection of electronic components. They are fundamental components for PCBs to achieve signal transmission and functional integration [1].

From the perspective of industry competition pattern, major players in the PCB micro-drill market include Youneng, Dingtai Hi-Tech, Jinzhou Seiko Technology, Jiandian Technology, Chuangguo Precision, etc. The top five players account for approximately 83% of the global market share [4]. As an important participant in the industry, Xiamen Xizhi Precision has strong technical accumulation and customer base.

In 2025, China’s printed circuit board (PCB) industry continued to maintain a dominant position in the global market, with the market size expected to reach

, accounting for more than 50% of the global share. According to Prismark’s forecast, the global PCB market size will increase from USD 73.565 billion in 2024 to USD 94.661 billion in 2029, with a five-year compound annual growth rate (CAGR) of 5.2% [5][6].

The CAGR of PCB demand in the artificial intelligence and high-performance computing fields is expected to

from 2024 to 2029 [5]. The PCB value per AI server is as high as RMB 5,000, which is three times that of traditional servers, directly driving the growth of demand for high-frequency and high-speed PCBs. The global AI server PCB market size is expected to reach USD 12 billion in 2024 [6].

The electrification rate of automobiles has exceeded 65%, driving the proportion of automotive PCB demand to increase from 12% in 2020 to 20% in 2025, with a market size of over USD 30 billion [6]. The cumulative number of global 5G base stations built has exceeded 5 million, driving a 25% growth in demand for high-frequency and high-speed PCBs [6].

Industry data from November 2025 shows that the supply and demand of PCB micro-drills are tight. Relevant manufacturers such as Jiandian Technology earned RMB 240 million after tax in the January-September period, with EPS reaching RMB 1.69, indicating that the industry prosperity continues to rise [4].

Minibao Optoelectronics’ original main business is the R&D, production, and sales of LED green lighting fixtures. As a national-level specialized, sophisticated, unique, and new (“Little Giant”) enterprise, it mainly provides lighting products to overseas regional brand owners and engineering companies through the ODM model [7]. This acquisition marks the company’s official entry into the

, achieving a strategic leap from lighting equipment manufacturing to core consumables for electronic manufacturing.

Xiamen Xizhi Precision and Jiangxi Maida provide micro-hole processing technology solutions to leading global PCB customers, while Minibao Optoelectronics has long served overseas customer groups. There is certain synergy potential in

between the two parties. After the acquisition is completed, Minibao Optoelectronics can leverage the technical accumulation and customer network of the target companies to expand its business layout in the electronic manufacturing field.

With the rapid development of AI servers, high-performance computing and other fields, the demand for high-end PCBs and their supporting consumables continues to grow. Xiamen Xizhi Precision’s technical accumulation in the field of tungsten carbide micro-drills for AI PCB processing will enable Minibao Optoelectronics to share the market opportunities brought by the

.

Through this acquisition, Minibao Optoelectronics will expand from a single LED lighting business to a dual-main-business structure of “LED Lighting + PCB Consumables”. Driven by emerging fields such as AI computing power and new energy vehicles, the PCB industry has high growth potential and prosperity, which is expected to bring

to the company, thereby improving the company’s overall valuation level.

1. Integration Risk
   : Cross-industry mergers and acquisitions involve challenges such as business integration and management integration. It is necessary to pay attention to the synergy effect between Minibao Optoelectronics and the target companies in terms of corporate culture, management teams, and business operations.

2. Industry Cycle Fluctuation
   : Although the PCB industry benefits from the growth of emerging fields such as AI, it still faces certain risks of cyclical fluctuations.

3. Raw Material Price Fluctuation
   : The main raw material for PCB micro-drills is metal materials such as tungsten carbide. Fluctuations in commodity prices may affect the profitability of the target companies.

4. Intensified Competition
   : The top five players in the PCB micro-drill market account for 83% of the market share, and the market competition pattern is relatively concentrated. New entrants face certain competitive pressures.

This acquisition has

for Minibao Optoelectronics:

• Business Territory Expansion
  : Extending from LED lighting to the core consumables segment of PCB manufacturing, realizing upstream extension of the industry chain
• Sharing Industry Dividends
  : Directly benefiting from the high growth of the PCB industry driven by AI computing power, new energy vehicles, etc.
• Valuation Enhancement Potential
  : The dual-main-business structure is expected to gain higher valuation recognition from the market
• Expected Synergies
  : There are certain synergy opportunities in customer resources, technical accumulation, etc.

Overall, this merger and acquisition is expected to effectively expand Minibao Optoelectronics’ layout in electronic manufacturing business and is expected to have a positive impact on the company’s valuation. However, the final effect still depends on the specific terms of the transaction plan, the financial status of the target companies, and the subsequent business integration.

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[1] Yicai Global - “Minibao Optoelectronics: Planning to Acquire 100% Equity Interests in Xiamen Xizhi Precision and Jiangxi Maida, Which Deeply Engage in the Core Consumables Segment of PCB Manufacturing” (https://www.yicai.com/brief/103009853.html)

[2] AAStocks - “Minibao Optoelectronics (301362.SZ): Planning to Acquire 100% Equity Interests in Xiamen Xizhi Precision and Jiangxi Maida” (http://www.aastocks.com/sc/stocks/analysis/china-hot-topic-content.aspx?id=GLH5152730N&catg=4&source=GLH)

[3] Eastmoney - “Minibao Optoelectronics: Planning to Acquire 100% Equity Interest in Xiamen Xizhi Precision, Suspension from Trading Starting January 19” (https://finance.eastmoney.com/a/202601183622649612.html)

[4] Gelonghui - “2025 Report on the Overall Scale and Market Share Ranking of the PCB Micro-Drill Industry” (https://m.gelonghui.com/p/2019333)

[5] Hong Kong Exchanges and Clearing Limited - “Industry Overview: Global PCB Market Overview” (https://www1.hkexnews.hk/app/sehk/2025/107637/a125078/sehk25082000381_c.pdf)

[6] NEPCON China - “2025 China PCB Industry: From Scale Expansion to Value Leap” (https://www.nepconchina.com/zh-cn/mtzx/hyxx/9/18.html)

[7] Eastmoney - “Full Text of 2025 Semi-Annual Report of Shenzhen Minibao Optoelectronics Co., Ltd.” (http://static.cninfo.com.cn/finalpage/2025-08-28/1224587270.PDF)

[8] Securities Times - “Performance of Multiple PCB Companies Grew by Over 300%! Grouping to ‘Prosper’ in Southeast Asia!” (https://www.stcn.com/article/detail/3303452.html)