Key Takeaways

• KaiweiTe plans to acquire Jingyi Semiconductor for 1.65 billion yuan, expecting to raise 901 million yuan through share issuance.
• The acquisition aims to enhance profitability and expand product offerings in the power semiconductor sector.
• Jingyi Semiconductor’s performance shows stronger profitability than KaiweiTe, with significant market share in various product lines.

Acquisition Overview

Suzhou KaiweiTe Semiconductor Co., Ltd. announced plans to acquire Chengdu-based Jingyi Semiconductor Co., Ltd. for a total of 1.65 billion yuan. Funding for this acquisition will primarily come through issuing shares to no more than 35 specific investors, with expectations to raise around 901 million yuan. Once finalized, Jingyi Semiconductor will operate as a wholly-owned subsidiary of KaiweiTe.

The acquisition presents a significant restructuring in assets, as Jingyi Semiconductor is already a key customer of KaiweiTe, contributing to the latter’s market strategy. The financial metrics show that while KaiweiTe’s assets and revenue for 2025 stand at approximately 936 million yuan and 255 million yuan, respectively, Jingyi Semiconductor surpasses these figures, highlighting its stronger position in the semiconductor market.

Despite achieving a modest profit of 17.795 million yuan in 2023, KaiweiTe faced losses in subsequent years. Projections suggest that after the acquisition, the net profit for KaiweiTe could improve significantly, with expected gains from Jingyi Semiconductor’s robust financial performance, which consistently outstrips that of KaiweiTe.

A key aspect of the acquisition deal includes performance commitments from Jingyi Semiconductor, requiring it to achieve a cumulative net profit of no less than 255 million yuan in 2026 and 2027. Additionally, projected revenues from self-developed chip products are set at 335 million yuan, 452 million yuan, and 566 million yuan for 2026, 2027, and 2028, respectively.

KaiweiTe’s plan involves issuing about 27,736,570 new shares as part of the transaction’s share payment considerations, with a total cash payment of around 749 million yuan. Influential figures within Jingyi Semiconductor will receive substantial shares, enhancing their stake in KaiweiTe post-transaction.

Founded in 2015, KaiweiTe specializes in the development and sales of intelligent power semiconductor devices, operating effectively in consumer and industrial markets. Following the announcement, the company’s stock price surged 20% to reach 77.82 yuan per share, increasing its market value to 5.734 billion yuan.

Jingyi Semiconductor, established in 2019, is recognized for its innovation in power semiconductors, holding a significant share in domestic markets. The company’s partnerships with leading brands like Midea and Xiaomi highlight its fundamental role in the sector, particularly in areas such as power management and motor drive solutions.

This merger is expected to not only restore profitability for KaiweiTe but also enhance its technological capabilities, customer base, and market reach within the semiconductor industry. The acquisition aligns with KaiweiTe’s strategic goals of strengthening its power semiconductor product layout while navigating through recent financial challenges.

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