Yanjiang Co., Ltd. (300658) Valuation and Risk Analysis of Cross-Industry Acquisition of Yongqiang Technology

I have now collected sufficient data and will conduct a systematic and comprehensive analysis for you.

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Yanjiang Co., Ltd. issued a suspension announcement for major asset restructuring on January 4, 2026, planning to acquire control of Ningbo Yongqiang Technology Co., Ltd. through a

, and raise supporting funds. This transaction is expected to constitute a major asset restructuring[1][2].

Transaction Elements	Details
Target Asset	98.54% equity interest in Yongqiang Technology
Payment Method	Share issuance + cash payment
Transaction Stage	Planning phase, letter of intent signed
Target Business	High-end integrated circuit interconnection materials (copper clad laminates, IC substrates)

was founded in 2019, focusing on the field of high-end integrated circuit interconnection materials:

Item	Data
Establishment Date	December 2019
Core Products	IC substrates, high-end display substrates, high-speed high-frequency substrates, high-performance copper clad laminates, prepregs
Application Fields	AI computing power and data centers, high-speed optical modules, 6G communication networks, intelligent automotive electronics
Customer Certification	Has passed performance certification of leading domestic enterprises
Historical Financing	3 rounds of market-oriented investment totaling RMB 210 million
Previous Valuation	Over RMB 1 billion[1][2]

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The cross-industry acquisition has had a significant impact on the valuation of Yanjiang Co., Ltd.:

• Stock price has risen by over
  120%
  since September 2025
• Cumulative increase of over
  24%
  in the 2 weeks before the announcement (December 22-31, 2025)
• Single-day increase of over
  11%
  on December 31, 2025, with a turnover of RMB 445 million, hitting a record high since October 2020[2]

Indicator	Performance Before Announcement	Market Reaction
Stock Price Range	RMB 7.77 - 14.90	Suspended after announcement
3-Month Increase	81.17%	Significant deviation from fundamentals
Trading Volume	15.39 million shares per day on average	Abnormal volume surge before the announcement

• The industry is in the mature stage, with sanitary napkin penetration reaching a peak and the number of newborns continuing to decline
• 2024 revenue was RMB 1.48 billion, with net profit of only RMB 27.28 million
• Profitability continues to decline: ROE dropped from 6.8% in 2021 to 2.4% in 2024
• PE (TTM): 132.93x (significantly higher than the industry average)[0]

• The industry is in a high boom cycle, benefiting from the surge in AI computing power and new energy vehicles
• Referring to comparable companies: Nanya New Materials (688519) currently has a PE of over 124x and a market capitalization of over RMB 19 billion
• Industry leader Shengyi Technology plans to invest RMB 4.5 billion to expand production of high-performance copper clad laminate projects[3]

Indicator	Official Website Target	Actual Status	Gap
Output Value Target	RMB 1.8 billion (end of 2022)	Only RMB 300 million in 2024	-83%
Net Profit Target	RMB 400 million	Not disclosed	Questionable
Number of Customers	-	Over 80	Rapid growth
Production Capacity	Phase 2: 30,000 sqm	Exceeded 10 million sqm/year	Actual capacity released

1. Uncertainty in Performance Commitment Fulfillment
   : After the Phase 2 base went into production at the end of 2022, there is a huge gap between actual output value and the target
2. Weak Foundation for Previous Valuation
   : The RMB 1 billion valuation was based on the target of “RMB 1.8 billion output value, RMB 400 million net profit”, but only RMB 300 million output value has been achieved so far
3. Impact of Related Party Transactions
   : Yongqiang Technology is an enterprise in which a subsidiary of Xingsen Technology holds shares. In 2024, its sales to Xingsen Technology were only RMB 27,400, with limited contribution from related party transactions[4]

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Dimension	Yanjiang Co., Ltd. (Original Business)	Yongqiang Technology (New Business)
Industry	Disposable sanitary products	Semiconductors/electronic materials
Product Attribute	Consumer goods raw materials	High-end electronic component materials
Technical Threshold	Low	Extremely high
Customer Certification Cycle	Short	18-36 months
Downstream Applications	Diapers, sanitary napkins	AI servers, communication base stations, automotive electronics

• High-speed high-frequency copper clad laminate technology has long been monopolized by giants such as Rogers (US), Panasonic (Japan), and Lien Mao Electronics (Taiwan, China)
• The competitiveness of domestic manufacturers in the high-end market needs to be improved, and Yongqiang Technology can only be classified into the third echelon (revenue scale less than RMB 2 billion)[1]
• Key materials such as ABF resin are basically monopolized by Ajinomoto (Japan), with its production capacity accounting for over 90% of the global total[5]

Indicator	Value	Risk Warning
Monetary Funds	RMB 216 million	Limited
Short-Term Loans	RMB 435 million	Debt repayment pressure exists
Asset-Liability Ratio	50.77%	Moderately high
Interest-Bearing Liability Ratio	36.47%	Heavy burden
Operating Cash Flow	RMB 180 million	Average cash generation capacity
Net Profit Attributable to Parent	RMB 42.5 million	Weak profitability

• Investment costs for high-end copper clad laminate production lines are high (Reference: Nanya New Materials invested RMB 740 million in a high-grade material production line)
• Yongqiang Technology has invested hundreds of millions of yuan in introducing intelligent production lines
• Subsequent capital consumption for capacity expansion, technological iteration, and certification cycles will all be borne by Yanjiang Co., Ltd.[1]

• The semiconductor industry has high professional barriers, requiring completely different technical understanding and market judgment
• Yanjiang Co., Ltd.'s existing management team has limited experience in the copper clad laminate field
• Talent introduction and team stability are key challenges

• Disposable sanitary products and semiconductor materials have almost no synergy in supply chain, customer resources, technological accumulation, etc.
• A new business system and capabilities need to be built from scratch

• The 2025 revised “Six Rules on Mergers and Acquisitions” clearly supports traditional industries in acquiring assets of strategic emerging industries
• Reduces profit thresholds, relaxes pricing restrictions, and encourages asset acquisition through share issuance[4]

• Shengyi Technology invests RMB 4.5 billion to expand production of high-performance copper clad laminates
• Nanya New Materials raises RMB 900 million through private placement for high-grade high-speed high-frequency copper clad laminates
• Industry leaders accelerate capacity expansion, compressing the living space of small and medium-sized manufacturers[3]

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As shown in the chart, Yanjiang Co., Ltd.'s stock price has been on an upward trend since September 2025, with an increase of over 120% by January 2026 before the acquisition announcement. Notably, the stock price rise obviously preceded the disclosure of the acquisition announcement, arousing market doubts about information leakage.

Financial data shows that Yanjiang Co., Ltd. faces obvious growth bottlenecks:

• Operating Revenue
  : Has remained in the range of RMB 1.4-1.5 billion in the past four years, with growth stagnant
• Net Profit
  : Continues to decline, dropping from RMB 76 million in 2021 to RMB 27 million in 2024
• ROE
  : Dropped from 6.8% to 2.4%, with profitability continuing to weaken

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Scenario	Impact on Valuation	Core Assumptions
Optimistic Scenario	Significant valuation increase	Yongqiang Technology fulfills performance commitments, AI demand remains strong
Neutral Scenario	Moderate valuation recovery	The target achieves stable profitability, industry competition intensifies
Pessimistic Scenario	Valuation under pressure	Failure to meet performance targets, goodwill impairment, integration failure

1. Information Leakage Risk
   : Abnormal stock price movement in advance attracts regulatory attention
2. Target Valuation Dispute
   : Huge gap between performance and goals, rationality of the RMB 1 billion valuation is questionable
3. Cross-Industry Integration Difficulty
   : High industry barriers, insufficient management experience
4. Capital Chain Pressure
   : Limited cash generation capacity of the main business, large investment demand for the new business
5. Intensified Industry Competition
   : Capacity expansion by leaders compresses the living space of small and medium-sized manufacturers
6. Long Certification Cycle
   : Downstream customer certification takes 18-36 months

• Pay close attention to subsequent audit and evaluation reports and performance commitment clauses
• Follow the progress of regulatory investigations into insider trading
• Evaluate whether the company’s actual financial strength can support subsequent investments
• Track the progress of the target’s capacity release and customer certification

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[1] Sina Finance - Diaper Material Supplier Crosses into High-End Chip Interconnection Materials: Yanjiang Co., Ltd.'s Plans and Challenges (https://finance.sina.com.cn/cj/2026-01-06/doc-inhfknap5579615.shtml)

[2] Sina Finance - Yanjiang Co., Ltd. Plans to Acquire Yongqiang Technology, Stock Price Premovement and Target’s Performance Valuation Attract Attention (https://finance.sina.com.cn/roll/2026-01-04/doc-inhfekni8632828.shtml)

[3] Tencent News - Evening Announcements | These Announcements on January 4 Are Worth Watching (https://news.qq.com/rain/a/20260104A07QK300)

[4] Sina Finance - Yanjiang Co., Ltd. Plays Cross-Industry Acquisition, Stock Price Prewarms: Is Yongqiang Technology’s Mass Production Unsuccessful? (https://finance.sina.com.cn/stock/observe/2026-01-09/doc-inhftcfr0486748.shtml)

[5] NetEase - Battle for the IC Substrate Industry Chain (https://www.163.com/dy/article/KHMQPOUG05539ZF4.html)

[0] Jinling API Data - Yanjiang Co., Ltd. (300658) Company Profile and Market Data