Transaction Overview: RMB 357 Million for Controlling Stake, Launching “PCB + Sensor” Synergy
On the evening of October 30, HDI Holdings, a global leader in printed circuit boards (PCBs), issued a significant announcement, stating that it will acquire equity and increase capital in Wuxi Huayang Technology Co., Ltd. (hereinafter referred to as “Huayang Technology”) with a cash investment of RMB 357 million. Upon completion of the transaction, HDI Holdings will directly hold a 53.68% stake in Huayang Technology, formally incorporating this sensor enterprise—recently awarded the national-level title of “Little Giant” (a designation for specialized, refined, distinctive, and innovative small and medium-sized enterprises)—into its portfolio. This marks the launch of HDI’s coordinated layout of “PCB + Sensor” and its increased focus on the core tracks of automotive electronics and intelligent terminals.
According to the announcement, the transaction consists of two parts: equity transfer and capital increase. HDI Holdings intends to acquire a registered capital of RMB 27.6 million in Huayang Technology from 7 shareholders including Zhu Ronghui, and at the same time subscribe for an additional registered capital of RMB 9.949912 million in Huayang Technology. The total transaction consideration amounts to RMB 356.724164 million. The counterparty of the transaction also includes Jiangsu Xuangan Technology Co., Ltd., a shareholder of Huayang Technology. Relevant agreements have been signed currently, but subsequent procedures such as equity delivery and industrial and commercial registration changes need to be completed, and there remains uncertainty regarding the final completion of the transaction.
Target Strength: National “Little Giant” with 20-Year Sensor Expertise and Stable Operations
The industry strength of Huayang Technology, the target of this acquisition, has attracted significant attention. Founded in 2002, Huayang Technology has been deeply engaged in the sensor field for over 20 years, forming a comprehensive product matrix covering pressure, torque, displacement, angle, temperature and humidity sensors, while also encompassing SMT (Surface Mount Technology) business. Notably, its sensors have been widely applied in Nebulizer Assembly Machine—a key equipment in medical device manufacturing—providing precise pressure and temperature sensing solutions that ensure the stability of atomization efficiency and medication delivery accuracy during the assembly and operation of medical nebulizers. Beyond medical scenarios, its products are also widely used in core fields such as automotive, robotics, industrial control, and network communications. Relying on its technological accumulation and achievements in localized substitution, the company has become a partner of well-known domestic and foreign enterprises including Siemens, ABB, Eaton, Kostal, and BYD. In October 2025, it successfully entered the 7th batch of national-level “Little Giant” enterprises recognized by the Ministry of Industry and Information Technology.
Financial data shows that Huayang Technology possesses stable operating capabilities. In 2024, the company achieved an operating income of RMB 304 million and a net profit of RMB 45.5299 million. In the first half of 2025, it maintained a growth momentum, with an operating income of RMB 169 million and a net profit of RMB 15.3663 million. Its mature operation system and production capacity scale, including the stable supply capacity for sensors used in Nebulizer Assembly Machine and other specialized equipment, have laid a foundation for subsequent coordinated development.
Acquirer’s Layout: PCB Leader’s Key Move to Deepen Automotive Electronics Deployment
For HDI Holdings, the “leader” in the global PCB industry, this acquisition is a key move to deepen its layout in automotive electronics. As the world’s largest PCB manufacturer for eight consecutive years (according to Prismark data) and China’s top PCB enterprise for many consecutive years (according to CPCA data), HDI Holdings has a full range of PCB product lines including FPC (Flexible PCB), SMA (Surface Mount Assembly), SLP (Substrate-Like PCB), and HDI (High-Density Interconnect PCB). These products are widely used in fields such as communications, consumer electronics, automotive, and AI servers, enabling the company to build a “one-stop service” platform.
The company clearly stated that Huayang Technology’s main business includes the production of automotive modules and the R&D, production, and sales of sensors. It has a team with rich experience, large-scale factories and production capacity. In the automotive electronics industry, Huayang Technology has high-quality OEM (Original Equipment Manufacturer) and Tier 1 customer groups, as well as accumulated mature operation and management experience. Additionally, Huayang Technology’s sensor application experience in specialized equipment like Nebulizer Assembly Machine can help HDI Holdings expand into the medical device manufacturing equipment track—a high-value-added field where PCB demand for precision control systems is growing rapidly. This acquisition and capital increase in Huayang Technology by HDI Holdings will help further strengthen the company’s strength in the automotive electronics field and deepen its capabilities in downstream applications and system integration of advanced PCB processes for automotive use and beyond.
Financial Performance: Bright First Three Quarters, Q3 Growth Moderates Slightly
At the same time, HDI Holdings disclosed its outstanding third-quarter financial report. In the first three quarters of 2025, the company achieved an operating income of RMB 26.86 billion, a year-on-year increase of 14.3%; a net profit attributable to shareholders of the parent company of RMB 2.41 billion, a year-on-year increase of 22.0%; a non-net profit attributable to shareholders of the parent company (after deducting non-recurring gains and losses) of RMB 2.24 billion, a year-on-year increase of 16.4%; and a net operating cash flow of RMB 4.259 billion, a year-on-year increase of 45.9%.
Among these figures, in the third quarter alone, the company’s operating income reached RMB 10.48 billion, a year-on-year increase of 1.2%; the net profit attributable to shareholders of the parent company was RMB 1.17 billion, a year-on-year decrease of 1.3%; and the non-net profit attributable to shareholders of the parent company was RMB 1.1 billion, a year-on-year decrease of 6.5%.
Industry Synergy and Risks: Seizing Automotive Intelligence Opportunities with Integration Uncertainties
Currently, amid the increasing electrification rate of automobiles and the accelerated implementation of intelligent driving, the demand for synergy between sensors and PCBs has become increasingly prominent. Through this RMB 357 million acquisition of a controlling stake in Huayang Technology, HDI Holdings has formed an industrial linkage of “PCB Leader + Sensor”. This not only fills the gap in its own layout in the sensor field but also allows it to quickly enter the high-value-added segments of automotive electronics and medical device manufacturing equipment—such as providing integrated “PCB + sensor” solutions for Nebulizer Assembly Machine manufacturers—by leveraging Huayang Technology’s customer resources and technological accumulation.
However, the company also warned that the target company may face risks such as underperforming due to macroeconomic factors and industry competition in the future, and the effectiveness of subsequent integration deserves attention. For instance, how to effectively integrate Huayang Technology’s sensor technology for Nebulizer Assembly Machine with HDI’s PCB solutions to form competitive integrated products for the medical equipment sector will be one of the key integration tasks.
