Weifang Kangxin New Materials' Cross-Border Acquisition Update: Acquired Yubang Semiconductor for 347 million yuan with approval from Wuxi State-owned Assets Supervision and Administration Commission

Economic Observer reporter Liu Yong

On the evening of March 25, Kangxin New Materials (600076.SH) announced that the company recently received a forwarded document from its controlling shareholder, Wuxi Construction Development Investment Co., Ltd., which is the Wuxi State-owned Assets Supervision and Administration Commission’s approval on “Kangxin New Materials’ asset restructuring and acquisition of Yubang Semiconductor” (Xizhongzi Gai [2026] No. 5), granting principle approval for the company’s acquisition of Wuxi Yubang Semiconductor Technology Co., Ltd. (hereinafter referred to as “Yubang Semiconductor”).

Previously, Kangxin New Materials announced that the company plans to acquire 55% of Yubang Semiconductor’s equity for a cash amount of 347 million yuan. Among them, the company will use its own funds of 267 million yuan to acquire 10.3864 million yuan of registered capital of Yubang Semiconductor (which corresponds to 48.4593% before the capital increase and 42.3096% after the capital increase); and will subscribe to the newly increased registered capital of 3.115310 million yuan of Yubang Semiconductor with its own funds of 80 million yuan (which corresponds to 12.6904% after the capital increase). After the completion of the equity transfer and capital increase, the company will hold a total of 55% of Yubang Semiconductor’s equity.

The announcement shows that Yubang Semiconductor was established in 2014 and is a supplier of refurbishment equipment specializing in the integrated circuit manufacturing field. It achieves value regeneration of equipment through precise refurbishment and supports it with the supply of spare parts and consumables along with technical support, providing customers with integrated service solutions.

Yubang Semiconductor provides long-term technical support services related to integrated circuit manufacturing equipment for its customers, specifically including preventive maintenance, equipment disassembly, debugging, and repair. The refurbishment equipment mainly realizes its reuse value through precise refurbishment of retired equipment and adaptation to production lines.

In the semiconductor refurbishment equipment industry chain, the main participants include equipment suppliers (wafer fabs), equipment demanders (wafer fabs), traders, and refurbishment equipment companies. Refurbishment equipment companies provide retired equipment with the value of reaching service standards again and are a core link in the industry. After purchasing retired equipment from FABs or traders, refurbishment equipment companies carry out a series of diagnostics, functional refurbishments, precision repairs, and adjustments, ultimately completing the refurbishment and selling it to equipment demanders (wafer fabs) or traders with wafer fab channels, allowing the equipment to re-enter service in the demanders’ FABs.

Through years of development, Yubang Semiconductor has developed a high-quality customer base and has become a supplier for many well-known domestic wafer fabs. In 2024 and from January to September 2025, the target company’s operating revenues were 149.7892 million yuan and 166.0521 million yuan, respectively, with net profits of 13.0027 million yuan and 22.1815 million yuan, after deducting non-recurring gains and losses, showing steady growth in operating revenue and net profit after adjustments.

Kangxin New Materials was established in 1993, with a registered capital of 1.345 billion yuan, and its registered location is Weifang City, Shandong Province. The legal representative is Shao Jiandong, and it was listed on the Shanghai Stock Exchange main board in 1997. Its business scope includes research and development, manufacturing, and sales of biomass materials, import and export business, cargo transportation, planting, cultivation, and promotion of various high-quality timber and tree seedlings, among others.

According to Kangxin New Materials’ official website, the company is a key forestry industrialization enterprise that integrates wood deep processing, forestry product sales, new material technology research and development, promotion, wood structure building design, production, and construction.

Regarding the rationale for acquiring equity in Yubang Semiconductor, Kangxin New Materials stated that based on its strategic analysis and the trends in the semiconductor industry, the acquisition of Yubang Semiconductor will enable the company to expand from its traditional container floor business into the semiconductor field, achieving a strategic transformation and upgrade towards the semiconductor industry. This will help break through the limitations of its existing main business, realize diversified business layout, cultivate new profit growth points, and thus enhance overall profitability and risk resistance, aligning with the company’s long-term development strategy and industrial upgrade direction.

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