Orthodzhennya Yanjiang Company with shares in focus: a grand acquisition of Yongqiang Technology is changing market dynamics

In early January 2026, Yanjiang Co., Ltd. (Stock Code: 300658) announced a major corporate merger and acquisition, which caused a significant rally in the stock market. This strategic move into a new industry sparked widespread investor interest as the company prepares to take control of Ningbo Yongqiang Technology Co., Ltd.—a leading manufacturer of IC substrates and high-quality display backplanes.

Major Deal Begins with Preliminary Agreement

On December 31, 2025, Yanjiang reached a preliminary agreement on the future acquisition with the actual controller of Yongqiang Technology and its partners, including JIANGQIHE, QIANGYUAN, and Ningbo Yuanlu Zai Technology Partnership. At that time, the deal was still in active negotiations, with details needed on the size of the stake, payment scheme, and transaction structure.

An official announcement was made on January 4, 2026, when the company revealed plans to raise funds through issuing new shares and cash payments. Due to uncertainties and the need to protect shareholders’ interests, Yanjiang’s stock trading was suspended from January 5, 2026. The company plans to disclose a detailed deal plan within 10 trading days of the suspension.

Market Reacts Positively: Shares Rise Nearly 12%

Before trading was halted, the market had already responded optimistically to the news. On December 31, 2025, investors noticed a notable increase in the stock price—Yanjiang’s shares rose 11.68%, closing at 14.82 yuan per share. The company’s market capitalization reached 4.9 billion yuan, reflecting market confidence in the strategic direction of this transaction.

This price movement indicates that investors see this acquisition as a potential for synergy and expansion of Yanjiang’s manufacturing capabilities in critical sectors.

Yongqiang Technology: A Promising Company in a Strategic Industry

Ningbo Yongqiang Technology was founded in 2019 and specializes in developing and manufacturing advanced materials—IC substrates, high-quality display backplanes, as well as high-speed and high-frequency substrates. The company’s products are widely used in new infrastructure projects, including 5G/6G communications, artificial intelligence, data centers, and Internet of Things in transportation.

Yongqiang Technology has already earned trust from global industry leaders. The company has received approval and undergone performance certification from giants like Intel, Huawei, Inspur, Sugon, New H3C, and Accelink. This recognition from top players demonstrates the quality and reliability of its products.

Additionally, Yongqiang Technology has raised multiple rounds of investment and successfully completed several funding rounds. Its valuation exceeds 1 billion yuan, making it a valuable asset for Yanjiang.

Strategic Expansion: From Disposable Hygiene Products to IC Materials

Yanjiang Co., Ltd.'s core business has traditionally focused on developing, manufacturing, and selling surface materials for disposable hygiene products—3D perforated nonwoven fabric and perforated PE film used in feminine hygiene products and baby diapers. Its main clients include global giants like Procter & Gamble, Kimberly-Clark, and Hengan.

However, this acquisition of Yongqiang Technology marks a radical shift in the company’s strategy—moving toward high-tech materials and the semiconductor industry. In its 2024 annual report, Yanjiang already signaled an intention to “cautiously select and develop new industries,” identifying this as a priority for 2025. This acquisition demonstrates the company’s determination to execute this strategic transformation.

Stable Growth of Core Business Supports Investment Appetite

While Yanjiang prepares for expansion, its main business remains a reliable growth platform. In the first three quarters of 2025, the company reported revenue of 1.295 billion yuan—up 22.99% year-over-year. Net profit was 42.50 million yuan, a 27.95% increase year-over-year.

The third quarter was particularly impressive, with net profit reaching 16.66 million yuan, a remarkable 209.1% year-over-year growth. These figures indicate that the core business not only remains stable but is also accelerating, providing financial resources for ambitious expansion plans.

Global Expansion and Planned Capacity Building

In recent years, Yanjiang has been rapidly expanding its global presence. The company already has manufacturing facilities in Egypt, the USA, and India, opening new markets and increasing operational profitability. Since 2022, Singapore subsidiaries “Singapore Holdings” and “Yanjiang International” have actively expanded their activities in line with strategic goals, achieving positive results.

Global clients are shifting toward medium- and high-quality materials, creating favorable conditions for expanding production capacity. The theoretical capacity of the Egyptian production line is 12,000 tons per year, with confirmed capacity around 10,000 tons. Full capacity is expected to be reached in the first half of 2026. Commercial production in the USA is scheduled for 2026.

Net profitability shows growth for the parent company and Egyptian subsidiary in the first three quarters of 2025, with the Egyptian operation demonstrating faster growth. US and Indian subsidiaries are approaching breakeven, indicating a near-term profitable operation phase.

This acquisition of Yongqiang Technology broadens the company’s portfolio and positions it at the forefront of the technological revolution in semiconductor and material integration, making this one of the most significant M&A projects in the Chinese markets this year. Given the profitability of its core business and ambitious expansion plans, Yanjiang’s stock remains a focus for investors betting on the success of this transformative deal.