Чаньюань Дунгу продолжает развитие в области автомобильных запчастей, планирует приобрести 100% акций Kanghao Mechanical and Electrical.

消息 from Yangtze River Business Daily, Changyuan Donggu (603950.SH) announced on the evening of the 23rd that the company is planning to purchase 100% of the equity of Xiangyang Kanghao Mechanical & Electrical Engineering Co., Ltd. (hereinafter “Kanghao Mechanical & Electrical”) held by Hubei Xinyuan Dongli Technology Group Co., Ltd. (hereinafter “Xinyuan Dongli”) by issuing shares and paying cash, and to raise supporting funds. The company’s stock will be suspended from trading starting from the opening of trading on March 24, 2026, and is expected to be suspended for no more than 10 trading days.

At the same time, Changyuan Donggu, which focuses deeply on the automotive components field, has repeatedly been designated by customers for projects. In 2026 alone, it has received two customer designations; the total sales amount across the full lifecycle of the two projects is approximately RMB 2.55 billion to RMB 3.45 billion.

Proposed acquisition of Kanghao Mechanical & Electrical held by the controlling party

Changyuan Donggu’s headquarters is located in Xiangyang. The company focuses deeply on the automotive components field. Its principal business is the R&D, production and sales of diesel engine parts. Customers include large engine complete-assembly manufacturers and complete vehicle manufacturers. In recent years, Changyuan Donggu has accelerated its expansion into the new energy business, and has successfully implemented a strategy of running traditional energy and new energy in parallel.

Changyuan Donggu announced on the evening of the 23rd that the company is planning to purchase 100% of the equity of Kanghao Mechanical & Electrical through the issuance of shares and the payment of cash. The company’s stock will be suspended from trading starting from the opening of trading on March 24, 2026, and is expected to be suspended for no more than 10 trading days. This transaction is still at the planning stage. On March 23, the company and the counterparty, Xinyuan Dongli, signed a “Letter of Intent on Cooperation”. Xinyuan Dongli agreed to consult with the company on arrangements regarding the specific scope of the target assets, the transaction method, the transaction plan, the share issuance price, the valuation of the target assets, and other matters for this transaction.

The target company of this transaction, Kanghao Mechanical & Electrical, was established in December 2005, with registered capital of 15 million yuan, and its registered address is in Xiangyang High-tech Industrial Development Zone. Hubei Xinyuan Dongli Technology Group Co., Ltd. holds 100% of its equity. Kanghao Mechanical & Electrical focuses on the machining of internal combustion engine parts, technology development of mechanical products, and machining of automotive parts. It has multiple patented technologies, such as an engine double-point front suspension bracket structure, an improved engine test and debugging bench, an engine exhaust heat-insulating shield, and an automatic fuel-cut device under emergency operating conditions.

The legal representative of Kanghao Mechanical & Electrical is Li Zuoyuan. Changyuan Donggu’s 2025 interim report shows that Li Zuoyuan is also Changyuan Donggu’s legal representative, the largest shareholder, and the actual controller. In its announcement, Changyuan Donggu stated that, according to the relevant laws and regulations such as the “Administrative Measures for Major Asset Restructuring of Listed Companies”, this transaction is expected to constitute a major asset restructuring and also an associated-party transaction; however, this transaction will not result in changes to the company’s controlling shareholder or actual controller, and it does not constitute a restructuring listing.

Changyuan Donggu received customer project designations twice in 2026

It is worth noting that, in recent years, Changyuan Donggu has repeatedly received customer project designations. From 2026 to date, it has received customer designations twice (one of which was obtained by a subsidiary). The total sales amount across the full lifecycle of the two projects is approximately RMB 2.55 billion to RMB 3.45 billion. Receiving customer project designations means that the company’s R&D technology, product quality, and manufacturing capability have been recognized by customers.

On January 27, 2026, Changyuan Donggu issued an announcement stating that its subsidiary, Xiangyang Changyuan Langhong Technology Co., Ltd., received a designation letter from a well-known domestic passenger vehicle enterprise (based on a confidentiality agreement, the name is not disclosed). Langhong was selected as the designated supplier for the customer’s certain project involving the gearbox front, middle and rear housing assembly, engine cylinder block blanks, and pre-processing of cylinder block blanks. The company was required to immediately start development work upon receipt of the designation letter to ensure the project’s schedule requirements. According to the customer’s plan, the designated project is expected to begin mass production at the end of June 2026. The project lifecycle is 5 years, and the total sales amount across the full lifecycle is expected to be RMB 2.2 billion to RMB 3.0 billion.

On January 31, 2026, Changyuan Donggu again issued an announcement. The company received a designation intent letter from a certain domestic customer (based on a confidentiality agreement, the name is not disclosed). The company was determined to be the designated supplier for the customer’s engine cylinder block and front-end gearbox. The company was required to immediately start the necessary work upon receiving the designation intent letter to ensure timely delivery of the products. According to the customer’s plan, the designated project is expected to begin mass production in July 2026. The project lifecycle is 5 years. The total sales amount across the full lifecycle is expected to be RMB 350 million to RMB 450 million.

● By Xu Lingli, a reporter from Yangtze River Business Daily

Editors: ZB