Huangshan State-Owned Capital's First Appearance After Taking Control: Why Did Ruixin Technology Set Its Sights on AI Industrial Vision Assets?

21st Century Business Herald Cao Enhui

Entering 2026, China’s auto parts manufacturing industry has launched a fierce wave of mergers and acquisitions. Among them, leading domestic precision aluminum alloy component manufacturer Tianjin Ruixin Chang Technology Co., Ltd. (referred to as Ruixin Technology, 300828.SZ) has joined this trend, planning to acquire control of Deheng Equipment, a company specializing in automotive stamping, welding parts, and intelligent equipment.

Since the announcement of this acquisition in late February this year, it has attracted significant industry attention: on one hand, as new energy vehicle technology rapidly evolves, parts suppliers face order volatility risks, making mergers and acquisitions a direct choice for many companies to supplement performance shortfalls; on the other hand, this is also Ruixin Technology’s first acquisition after the entry of local state-owned capital, aiming to tap into a new niche in the auto parts sector.

Regarding why they are acquiring Deheng Equipment, a person close to Ruixin Technology told 21st Century Business Herald that the target assets have strong complementarities and synergies with the listed company’s technology R&D, product layout, and customer resources. “Especially its deeply developed AI industrial vision business, which is expected to become a new growth point.”

Intended to inject profitable assets

According to Ruixin Technology’s announcement, the company plans to purchase a 51% stake in Deheng Equipment from ten counterparties, including Tong Xiaoping and Zhang Yapeng, by issuing shares to pay cash, and also to raise supporting funds through issuing shares to no more than 35 specific targets, including controlling shareholder Huangshan Kaidou Lingdun. If the transaction is completed, Deheng Equipment will become a controlling subsidiary of Ruixin Technology.

Public information shows that Ruixin Technology’s main businesses include power electronic heat sinks, automation equipment, medical device precision parts, automotive lightweighting, and thermal management system components, serving clients such as Schneider, Siemens, BYD, ABB, and Inovance. The target company, Deheng Equipment, is engaged in automotive stamping and welding parts, R&D and sales of lightweight magnesium-aluminum alloys, and the application of Puman AI visual robots. Its customers include Chery, Leapmotor, JAC Motors, and others.

In fact, through acquiring Deheng Equipment, Ruixin Technology’s performance improved noticeably.

Financial data shows that from 2023 to the first three quarters of 2025, Ruixin Technology achieved revenues of 665 million yuan, 662 million yuan, and 437 million yuan, respectively, with only a slight increase in revenue in the first three quarters of 2025. However, its net profit has declined year by year, with a net profit attributable to shareholders of the parent company of 28 million yuan in the first three quarters of 2025.

Deheng Equipment’s performance is significantly better than Ruixin Technology’s— in 2025, it achieved revenue of 922 million yuan, a year-on-year increase of 17.90%; net profit attributable to the parent was about 75 million yuan, up 368.75% year-on-year.

It is worth noting that the merger between Ruixin Technology and Deheng Equipment has received synergy support from Anhui local state-owned assets.

Shareholding structure shows that the actual controller of Ruixin Technology, Huangshan Kaidou Lingdun, is a state-controlled venture capital company under Huangshan High-tech Industry Investment Group, which took control in August 2025 through “agreement acquisition + waiver of voting rights.” The third-largest shareholder of Deheng Equipment, Huangshan Kaidou Xinande Heng, is also a state-controlled enterprise under Huangshan High-tech Industry Investment Group. Therefore, there is a certain capital connection between the two parties involved in the merger.

21st Century Business Herald notes that in recent years, the automotive industry has become a key focus for Huangshan City’s development. Especially, Huangshan’s state-owned assets are shifting from traditional investment and financing entities to industry “operators” and “managers.” As a result, acquiring Deheng Equipment marks Huangshan’s state-owned capital’s first “capital operation” after taking control of Ruixin Technology.

In the announcement, Ruixin Technology stated that the company and the target company have good complementarities and synergies in business development, customer resources, technological R&D, and product layout. This transaction will help enhance the company’s market position in the auto parts sector.

Why focus on AI industrial vision?

An insider told 21st Century Business Herald that the AI industrial vision business of Deheng Equipment is one of the two key aspects valued by the listed company in this merger.

As the main entity of Deheng Equipment’s AI industrial vision business, Puman Industrial has been a dark horse in the industrial intelligence field in recent years. According to Puman Industrial’s official website, the company integrates deep learning algorithms into industrial manufacturing, providing “AI + industrial vision” products and solutions that surpass industry standards, promoting intelligent upgrades and digital transformation of production processes.

As China’s industrial manufacturing enters a stage of intelligence and flexibility, AI vision technology is becoming a core driver for industrial robot applications. For example, in the automotive manufacturing sector, as new energy vehicles demand higher safety standards for batteries and more precise motor components, the accuracy of defect detection on production lines has shifted from “millimeter-level” to “micron-level.” Therefore, the iteration of AI vision technology is fundamentally driven by the dual needs of quality control and production efficiency.

According to the acquisition announcement, Deheng Equipment has developed an industrial vision product system for automotive manufacturing scenarios based on AI deep learning and multimodal fusion visual perception technology, including safety visual sensors and error-proofing sensors, covering core processes such as stamping, welding, painting, and assembly for production safety management and defect detection. “Industrial vision is a key supporting technology for intelligent manufacturing development. The expansion of this business segment will bring new growth points to the target company. Currently, these products have been mass-produced and applied in downstream automotive industry clients.”

Industry analyst Gese Automotive pointed out that the ongoing transformation and upgrading of the automotive industry chain is forcing parts companies to accelerate integration. The industry’s trend from “fragmented competition” to “consolidation and high-end development” is irreversible. “Acquiring core technologies, R&D teams, and industrialization capabilities through mergers and acquisitions is an effective way for companies to reduce R&D costs and accelerate technological implementation.”

Driven by the current electrification and intelligence of vehicles, the wave of consolidation in the auto parts industry is already underway. It should be noted that behind these mergers and acquisitions, the goal is not merely scale expansion; filling gaps in the industry chain and achieving synergy are the common objectives of most auto parts companies’ acquisitions.