en.Wedoany.com Reported - Blue Arrow Electronics has acquired a 60% stake in Chengdu Xinyi Technology Co., Ltd. for 336 million yuan, aiming to build an integrated industrial chain of "chip design + semiconductor packaging and testing."
Blue Arrow Electronics (301348) recently announced its plan to acquire a 60% stake in Chengdu Xinyi Technology Co., Ltd. (referred to as: Chengdu Xinyi) using its own or self-raised funds of 336 million yuan. Upon completion of the transaction, Chengdu Xinyi will become a controlled subsidiary of Blue Arrow Electronics and will be included in the consolidated financial statements. The acquisition has been approved by the company's shareholders' meeting.
Blue Arrow Electronics, formerly known as Foshan Radio Factory No. 4, founded in the early 1970s, has long focused on the semiconductor packaging and testing field, with products primarily consisting of discrete devices and integrated circuits. As an important semiconductor packaging and testing base in South China, the company has formed an annual production capacity of over 15 billion units, serving clients such as Midea, Gree, and China Resources Microelectronics. However, the company has faced significant operational pressure in recent years. Financial data shows that in 2025, the company's operating revenue was approximately 712 million yuan, with a net loss attributable to the parent company of about 37.3711 million yuan, and an overall gross margin of only 0.41%. Among this, the gross margin of its packaging and testing business decreased by 9.1 percentage points year-on-year to -7.03%. In the first quarter of 2026, the company achieved operating revenue of 176 million yuan, with a continued net loss attributable to the parent company of 8.0352 million yuan, a year-on-year decline of 10.22%. Regarding the reasons for the losses, Blue Arrow Electronics explained in its annual report that the recovery in demand from traditional consumer electronics and industrial sectors fell short of expectations, the market recovery for analog devices and discrete devices was slower than anticipated, coupled with pressure on product selling prices and rising raw material costs. Against this backdrop, the company chose to break through to the upstream of the industrial chain through mergers and acquisitions, aiming to improve its industrial layout and enhance core competitiveness.
Chengdu Xinyi was established in 2016, jointly funded by Hong Fengming and Hong Fengjun. It primarily engages in the research, development, production, and sales of high-reliability analog integrated circuits, having built a complete industrialization system covering chip design, tape-out management, product testing, and application support. Its products are mainly used in fields such as computer processing, sensing and guidance control, radar communication countermeasures, etc., with a focus on communication interface chips and analog signal chain chips. Applications span information communication, industrial control, surveillance security, medical health, instrumentation, new energy, and automotive sectors. Currently, Chengdu Xinyi has over 200 IC products certified as domestically controllable, with clients including large central and state-owned enterprises such as China Electronics Technology Group Corporation, Aviation Industry Corporation of China, and China North Industries Group Corporation. Operationally, in 2025, the company achieved operating revenue of approximately 156 million yuan and net profit of about 36.6135 million yuan; in the first quarter of 2026, it achieved revenue of 42.9478 million yuan and net profit of 10.7392 million yuan. In terms of equity structure, Chengdu Xinyi completed its Series A financing in 2022, introducing Chengdu local state-owned capital-backed Chengdu Science and Technology Venture Capital Group, whose shareholders include the Chengdu State-owned Assets Supervision and Administration Commission, the Sichuan Provincial Department of Finance, and the Chengdu Jinniu District State-owned Assets Supervision and Administration Commission. In 2024, it completed its Series B financing, introducing Zhuhai Xinhe Zhiyuan Investment Partnership (Limited Partnership) and Shenzhen Qieshi Huichuang Venture Capital Partnership (Limited Partnership), further strengthening its capital base.
This transaction includes performance commitments and payment arrangements. Hong Fengming, Hong Fengjun, and Xinyi Tongchuang, as the performance commitment parties, have pledged that Chengdu Xinyi will achieve net profits of no less than 33 million yuan, 40 million yuan, and 47 million yuan in 2026, 2027, and 2028 respectively, with a cumulative net profit commitment of no less than 120 million yuan over three years. Given that Chengdu Xinyi's net profit in 2025 reached 36 million yuan, the difficulty of meeting the first-year performance commitment is relatively controllable. The payment schedule is divided into five phases, with the last three phases directly linked to performance achievement: after the equity transfer and industrial and commercial registration changes are completed, Blue Arrow Electronics will pay a cumulative 70% of the equity transfer price; if the 2026 performance target achievement rate reaches 80%, 10% of the consideration will be paid; subsequently, when the cumulative net profit achievement rate for each year reaches 80%, the remaining 10% of the equity transfer price will be paid respectively.
