Weidi Co., Ltd. proposes an additional acquisition of 1.1B yuan, with Director Yu Qiong once again opposing. A company has now attempted for the fourth time to rewrite its main business destiny | Yangtze River Delta Capital Bureau

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Text | Sina Finance Shanghai Station, Shili

Weidi Co., wanting to use nearly 1.1 billion yuan in cash to acquire, to give itself a new track, but this is already Weidi Co.’s fourth time in recent years to rewrite its main business through acquisitions.

Just as the restructuring plan was announced, before the market could ask questions, someone on Weidi Co.’s board of directors had already cast a dissenting vote.

On April 1, Weidi Co. disclosed a major asset purchase plan, proposing to acquire 100% equity of Jiangsu Zhiyue Tiancheng Enterprise Management Co., Ltd. and 44.8506% of Jiangsu Jiuxing Precision Technology Co., Ltd. with about 1.1B yuan in cash, attempting to shift from its previously sluggish automotive electronics main business to a “automotive electronics + precision manufacturing” dual-core operation model. For a listed company whose main business has been under pressure in recent years and whose profit scale is not large, this is not a light business expansion but more like a gamble with chips.

The first person to clarify the risk points was Director Yu Qiong. She cast a dissenting vote on the relevant proposal, with a straightforward reason: this acquisition plan involves all cash and a large proportion of the target company’s equity, which poses significant risks to subsequent management and operations; the cash needed for this acquisition includes a 700 million yuan M&A loan, and after the transaction, the company’s high debt operation also entails considerable financial risk.

Because this is not Yu Qiong’s first time opposing. When Weidi Co. previously acquired Alpha Silicon, she also raised objections to the deal. The subsequent results were not smooth—Alpha Silicon’s performance did not meet expectations, and goodwill impairment risks surfaced. It is precisely because of this that Yu Qiong again cast a dissenting vote this time, which is no longer just a procedural reservation within the board but more like a reminder of the company’s recent “merger-driven transformation” path.

Returning to the transaction itself, why now? Why still pursue acquisitions? Why continue despite two unsuccessful previous acquisitions and even the exposure of risks in the last one?

Looking back over the past few years, this company has made several detours on the acquisition road.

In 2022, the company planned to acquire Feier Co., but the deal was ultimately terminated. That transaction did not end peacefully. Feier Chairman Lü Zhuxin once described the acquisition as a marriage, bluntly saying, “A man wants to marry a girl because his family is okay, but the girl’s family didn’t even accept the bride price. Now the man doesn’t want the girl anymore, and he issued a vague announcement. People might think there’s something wrong with this girl, but I want to say, the girl is fine; it’s the listed company that’s terrible, and it needs to clear Feier Co.’s name.”

In Lü Zhuxin’s view, before Weidi Co. announced the termination, Feier’s side was completely unaware. He described his feelings at the time as “surprised, baffled, and angry.”

Such scenes are rare in A-share M&A stories. A deal that didn’t go through ended with the target company’s chairman publicly “calling out” the listed company. For Weidi Co., that termination didn’t end with dignity but left a lingering negative public opinion.

By 2024, Weidi Co. also terminated the acquisition of Suzhou Baoyouji. Both acquisitions failed to materialize, and the company’s plan to rewrite its main business through external assets remained halted midway. Later that year, Weidi Co. used its own funds to acquire a 51% stake in Alpha Silicon, seemingly finally grasping a new puzzle piece to move forward.

But soon, problems arose again. According to the company’s 2025 performance forecast, Alpha Silicon’s performance did not meet expectations, and the 25.48M yuan goodwill on its books faced impairment risk. If further impairment is needed, it could even lead to a net profit attributable to the parent company’s owners turning negative.

Against this backdrop, looking at this acquisition of Jiuxing Precision, it’s hard to see it as just a routine industry expansion. It’s more like Weidi Co., after two failed acquisitions and the goodwill risks from the last one, is once again betting on external assets. The first two were either terminated ungracefully or quickly exposed risks after landing, and now the company is offering nearly 1.1 billion yuan in cash plus a 700 million yuan M&A loan—this sense of urgency and conflict is almost written into the draft.

And why does Weidi Co. keep moving forward? It’s not hard to understand. The announcement shows that the company’s revenue from 2022 to 2024 was 74.17 million yuan, 52.99 million yuan, and 65.23 million yuan respectively. The company also openly admits in its major matters warning that its current main business scale is small, and there is an urgent need to seek a second growth curve and enhance profitability.

By 2025, the forecast shows the company expects a net profit attributable to the parent’s owners of 2.47 million to 3.7 million yuan, a decrease of 26.81% to 51.14% year-on-year. On the other hand, Jiuxing Precision’s revenue for 2023, 2024, and January-October 2025 was 551 million yuan, 851 million yuan, and 809 million yuan, with net profits attributable to the parent’s shareholders of 53.03 million yuan, 93 million yuan, and 77.17 million yuan respectively. In terms of both revenue scale and profitability, this target company clearly appears to be the core asset in this deal.

Therefore, what’s most noteworthy about this acquisition isn’t just the large amount or the “cross-industry” aspect, but how it exposes Weidi Co.’s transformation anxiety. Its original main business is small and declining in profitability, so it can only keep seeking new assets; but past attempts have either failed or left behind aftereffects. Now, looking at Jiuxing Precision, a more profitable and larger target, it’s certainly attractive, but it also means a bigger, more expensive, and harder-to-digest acquisition.

The counterparty has signed a “Performance Commitment and Compensation Agreement,” promising that Jiuxing Precision will achieve net profits of no less than 110 million, 120 million, and 130 million yuan in 2026, 2027, and 2028 respectively, with a total commitment of no less than 360 million yuan over three years. Weidi Co. also stated in the announcement that this transaction will promote the company’s strategic transformation and form a “dual-core operation pattern of automotive electronics control products + precision metal components.” But what the market cares about more isn’t just how complete the commitments are, but why this company repeatedly relies on acquisitions to realize its future vision.

From Feier Co., to Suzhou Baoyouji, to Alpha Silicon, and now Jiuxing Precision, Weidi Co. seems to be repeatedly searching for direction on a bumpy road. It hasn’t stopped; instead, it keeps betting bigger each time.

And Yu Qiong’s dissenting vote precisely adds a layer of genuine realism to this deal.