Jemete has incurred a net loss of 390 million over five years and plans to make a cross-industry acquisition. The target's premium rate is 584.5%, with a four-year betting period for going public.

Changjiang Business Daily Reporter Xu Jia

The “first stock of mobile phone cases,” Jiemite (300868.SZ), is set to invest in a new field.

Recently, Jiemite announced an external investment plan. The company intends to purchase 21.4979% equity of Shenzhen Diamond Technology Co., Ltd. (hereinafter referred to as “Diamond”) for 129 million yuan in cash. Upon completion of this transaction, Diamond will become an associated company of Jiemite.

Changjiang Business Daily reporters noted that for Jiemite, which started with mobile phone protective cases, investing in Diamond, which mainly engages in nano-conductive diamond-coated micro-tools, is a significant attempt to expand its industrial layout. In this transaction, Diamond’s overall valuation reaches 600 million yuan, reflecting a premium of 584.5% over its book net assets.

However, although no performance commitments were set, both parties signed a “bet” agreement regarding Diamond’s qualification for listing by December 31, 2029.

It is worth noting that this is not Jiemite’s first attempt to diversify its business. In June 2025, Jiemite planned to restructure with Siten Technology (Tianjin) Co., Ltd. (hereinafter referred to as “Siten”), attempting to enter the computing power sector, but the effort ended in failure.

Previously, Jiemite’s performance forecast indicated that in 2025, the company expects a net profit attributable to shareholders of the listed company (hereinafter referred to as “net profit attributable to parent company”) loss of 44 million to 64 million yuan, and a net profit after deducting non-recurring gains and losses (hereinafter referred to as “net profit excluding non-recurring gains and losses”) loss of 67 million to 97 million yuan. Since 2021, Jiemite’s main business has continuously reported losses, with a cumulative net profit loss of over 390 million yuan over five years.

Target without performance commitments anchored for listing before the end of 2029

According to the transaction plan, Jiemite intends to purchase 21.4979% of Diamond’s equity for 129 million yuan in cash, funded by the company’s own capital and self-raised funds. After this transaction, Diamond will become an associated company of the listed company.

Data shows that Diamond was established in 2016 and mainly engages in nano-conductive diamond-coated micro-tools, transparent conductive glass, and surface high-bond metal coating services.

In 2024 and the first 11 months of 2025, Diamond achieved operating revenues of 66.6725 million yuan and 100 million yuan, respectively, with net profits of -8.6184 million yuan and 13.0588 million yuan, and net cash flow from operating activities of 2.0624 million yuan and -5.911 million yuan, respectively.

As of the end of November 2025, Diamond’s total assets amounted to 185 million yuan, including accounts receivable of 60.4776 million yuan; total liabilities were 97.3291 million yuan, and net assets were 87.6678 million yuan.

Based on the asset evaluation results and friendly negotiations among the parties involved, the valuation of 100% equity of Diamond in this transaction is 600 million yuan, with the transaction price for its 21.4979% equity set at 129 million yuan.

Changjiang Business Daily reporters noted that the 600 million yuan valuation represents a premium of 584.5% compared to Diamond’s book net assets.

It is noteworthy that although this is a high-premium investment, the transaction does not set performance commitments; instead, it establishes a listing “bet.”

The announcement states that the parties agreed that after the investment is completed, if Diamond fails to qualify for listing by December 31, 2029, including not obtaining the initial public offering acceptance letter from the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange by December 31, 2028, or being acquired by listed companies on the aforementioned exchanges, Jiemite has the right to demand all founding shareholders to jointly repurchase all or part of the equity in Diamond that they hold at that time.

Moreover, before Diamond qualifies for listing, if Diamond decides to increase registered capital or issue any form of equity securities or bonds, Jiemite has the right to subscribe on equal terms before potential subscribers and other shareholders.

Regarding the purpose of this investment, Jiemite stated that the company aims to broaden its industrial layout through this transaction, create new performance growth points, achieve resource sharing, technical complementarity, and market linkage with the target company, and establish a strategic partnership with the target company to jointly explore industry growth potential, inject new vitality and momentum into the company’s long-term development, and enhance the company’s profitability and sustainable operational capabilities, thereby creating continuous and stable investment returns for the company and all shareholders.

Main business loses for five consecutive years

In fact, this is not Jiemite’s first foray into new business areas.

In June 2025, Jiemite planned to acquire control of Siten for cash. Upon completion of this transaction, Siten would become a subsidiary of Jiemite.

At that time, Jiemite stated that after the completion of this transaction, the listed company would expand its product capabilities in computing servers, AI management software, and cloud computing services. Combining its ample customer resources and sales channels in the mobile smart terminal protective product industry could enrich the company’s overall product types, enhance overall technical capabilities, and broaden market space.

However, due to the failure to reach an agreement on the core terms of the transaction, in December 2025, Jiemite announced the termination of the restructuring plan with Siten, which also meant Jiemite’s attempt to enter the computing power sector ended in failure.

Four months after Jiemite terminated the restructuring, it planned to invest across sectors again, intending to break out of its performance slump through external acquisitions.

Changjiang Business Daily reporters noted that Jiemite, originally starting with the mobile phone protective case business, was listed on the ChiNext in August 2020, becoming the “first stock of mobile phone cases” in A-shares. However, in its first year of listing, the company’s performance began to decline, and the following year, its main business fell into loss.

From 2020 to 2024, Jiemite’s net profit excluding non-recurring gains and losses was 89.8129 million yuan, -5.702 million yuan, -158 million yuan, -133 million yuan, and -27.5557 million yuan, with year-on-year growth rates of -33.15%, -106.35%, -2667.25%, 15.49%, and 79.34%, respectively.

Recently, Jiemite’s performance forecast showed that in 2025, the company expects a net profit attributable to parent company loss of 44 million to 64 million yuan, and a net profit excluding non-recurring gains and losses loss of 67 million to 97 million yuan.

Since 2021, Jiemite has reported losses in net profits excluding non-recurring gains and losses for five consecutive years, with a cumulative loss amounting to over 390 million yuan.

Regarding the expected loss again in 2025, Jiemite stated that in 2025, although the revenue from the company’s own brand business increased compared to the same period last year, some domestic customers in the ODM/OEM business reduced their order demand due to changes in their own business. Additionally, due to tariff policy changes and international political situations affecting some overseas customers, there was a shift of supply chains to Southeast Asia, leading to a reduction in order volume for the company, resulting in a year-on-year decrease in ODM/OEM business revenue; thus, the company’s overall business revenue decreased compared to the same period last year, which also led to a year-on-year decrease in the company’s gross profit.

Moreover, due to fluctuations in the currency market, financial costs increased, and business promotion expenses increased compared to the previous year, all of which impacted Jiemite’s performance.

However, the secondary market responded positively to Jiemite’s investment in Diamond. After the announcement of the investment plan, on March 23, Jiemite’s stock hit the daily limit, closing at 46.33 yuan per share, a rise of 19.99%.