Yuk Wing Group Announces Major Acquisition of Anhui Runsheng Electric Power Technology: Strategic Expansion in China
Key Highlights
- Major Acquisition: Yuk Wing Group Holdings Limited has entered into a conditional agreement to acquire a 65% equity interest in Anhui Runsheng Electric Power Technology Co., Ltd. for RMB37.5 million (approx. HK\$43.4 million). The deal includes a call option for the remaining 35% equity interest at RMB20.1 million (approx. HK\$23.3 million).
- Strategic Rationale: The acquisition marks a significant step in Yuk Wing Group’s strategy to transition from a specialised manufacturer to a vertically integrated provider of rockdrilling solutions, with expanded production and warehousing capacity in the PRC.
- Shareholder Approval Required: The transaction constitutes a major transaction under Hong Kong Listing Rules, requiring shareholder approval at an extraordinary general meeting (EGM).
- Valuation: The agreed price is based on a professional valuation of the Target Company’s 100% equity at RMB57.6 million as of 30 April 2026, with the asset approach used due to the company’s property-heavy profile.
- Financial Impact: Upon completion, the Target Company will become an indirect non-wholly owned subsidiary, with its financials consolidated into the Group’s accounts.
- Potential Price Sensitivity: The expansion into property ownership and logistics in Hefei, China, is expected to support revenue growth, cost control, and operational flexibility. The move is aimed at capturing growing demand from China and mitigating risks tied to third-party logistics and rental volatility.
- EGM and Circular: A circular containing further transaction details, pro forma financials, and a valuation report is expected to be dispatched by 7 July 2026, with the EGM to follow.
Transaction Details
On 12 June 2026, Yuk Wing Group’s wholly-owned subsidiary, Top Standard Limited (the Purchaser), entered into a sale and purchase agreement with Mr. Fang Haibo (the Vendor) and Mr. He Zhangxiang and Mr. He Xuebing (the Grantors). The Purchaser will acquire 65% of Anhui Runsheng Electric Power Technology Co., Ltd. at a total cash consideration of RMB37.5 million. The payment structure includes:
- RMB17.5 million upon completion
- RMB20 million deferred for up to 12 months, interest-free for the first 6 months, then at 2.5% per annum for the balance period
Additionally, a call option is granted for the Purchaser to acquire the remaining 35% equity within 12 months after completion, at a total exercise price of RMB20.1 million. The call option can be exercised fully or partially, providing Yuk Wing with flexibility to increase its stake in the future.
Valuation and Fairness
The consideration was set following an independent professional valuation of the Target Company’s assets, primarily its investment properties in Hefei, Anhui province. The valuation used the asset approach, focusing on the market value of properties and adjusting for other assets and liabilities. The main property consists of seven buildings with a combined gross floor area of over 30,000 square metres, of which about one-third is currently leased, generating rental income. The rest is available for the Group’s operational expansion.
Conditions Precedent
Completion of the acquisition is subject to several conditions, including:
- Satisfactory due diligence
- Shareholder approval at the EGM
- Release of guarantees and discharge of liabilities
- Capitalisation of shareholder loans
- Receipt of a satisfactory independent valuation report
If the conditions are not met by 30 September 2026 (or a later agreed date), the agreement may be terminated without further obligations.
Strategic Rationale and Potential Impact on Shareholders
Yuk Wing Group currently operates its main manufacturing site on leased premises in Shunde District, PRC. This acquisition gives the Group ownership of over 30,000 square metres of industrial and warehouse space in Hefei, a key transportation hub. The facilities will support production expansion, centralised logistics, and inventory management, with the flexibility to lease out surplus space for auxiliary income.
The Board highlights several benefits:
- Supports growing demand from China, which has become a key revenue contributor
- Improves supply chain resilience and cost control by reducing reliance on third-party logistics and rental markets
- Enhances quality control and inventory management
- Opens potential new revenue streams from property leasing
- Positions the Group for long-term growth as a fully integrated provider of rockdrilling and related solutions
Shareholders should note that the acquisition is expected to be value-accretive over the long term and could have a positive impact on share price, especially if the Group successfully capitalises on the growth of its China business and achieves operational efficiencies from facility ownership.
Financial Information of Target Company
- 2025 revenue: RMB2.36 million; net loss after tax: RMB0.54 million
- Total assets as of 31 Dec 2025: RMB73.7 million; net assets: RMB5.2 million
- Rental income from leased properties: approx. RMB2.4 million in 2025
The Target Company’s prior guarantee of a RMB7.6 million loan (maximum exposure RMB3.8 million) will be released before deal completion.
Next Steps
A circular with full details, including financials and valuation report, will be sent to shareholders by 7 July 2026, with the EGM to follow for approval.
Shareholders and potential investors are advised to exercise caution when dealing in the shares, as the acquisition is subject to conditions and may not proceed if these are not met.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should refer to the company’s official circular and consult their financial advisors before making any investment decisions.
【廣東話版本】
昱榮集團重磅收購安徽潤升電力技術，戰略擴展中國業務
重點摘要
- 重大收購：昱榮集團控股有限公司擬以現金3,750萬元人民幣（約4,340萬港元），收購安徽潤升電力技術有限公司65%股權，並獲授以2,010萬元人民幣（約2,330萬港元）收購餘下35%股權的認購權。
- 戰略意義：本次收購標誌著昱榮集團由專業生產商向垂直一體化鑽挖解決方案供應商轉型，並在中國擴充產能及倉儲能力。
- 需股東批准：根據香港上市規則，該交易屬重大交易，須於股東特別大會（EGM）獲股東批准。
- 估值依據：協議價參考2026年4月30日獨立專業估值，全資權益估值為5,760萬元人民幣，以資產法計算（主因公司以物業為主）。
- 財務影響：交易完成後，目標公司將成為集團間接持有的非全資子公司，其財務報表將被合併入集團。
- 潛在股價敏感事項：於合肥自有工廠及物流樞紐的擴展，有助收入增長、控制成本及提升營運彈性，對中國市場需求增長有正面支持，亦有助減低第三方物流及租金波動風險。
- 股東通函及大會：公司將於2026年7月7日或之前派發通函，載有交易詳情、財務及估值報告，隨後召開股東特別大會。
交易詳情
2026年6月12日，昱榮集團全資附屬Top Standard Limited（買方）與方海波先生（賣方）及何章祥、何學兵（授予人）簽訂協議，以3,750萬元人民幣收購安徽潤升電力技術65%股權，付款安排如下：
- 完成時支付1,750萬元人民幣
- 剩餘2,000萬元人民幣於12個月內支付，首6個月免息，其後年息2.5%
同時，買方獲授於完成後12個月內以2,010萬元人民幣，分次或一次收購餘下35%股權的認購權。
估值及公平性
收購價由獨立專業估值師以資產法計算，重點評估合肥物業價值（七棟樓宇合共逾三萬平方米），其中約三分之一現已出租產生租金收入，其餘部分可供集團自用或出租。
先決條件
收購須滿足多項條件，包括：
- 盡職調查結果滿意
- 股東大會通過批准
- 解除擔保與清償債務
- 資本化股東貸款
- 獲取獨立專業估值報告
如於2026年9月30日或雙方同意的更後日期前未達成，交易可終止。
戰略考慮及對股東的潛在影響
昱榮現時在順德廠房為租用產線，是次收購將令集團持有合肥逾三萬平方米自有工業及倉儲設施，提升產能、物流及庫存管理效率，亦可靈活出租空間增加收入。
- 支持中國市場需求增長，帶動收入
- 降低倚賴第三方物流及租金，提升供應鏈韌性及成本控制
- 強化品質監控及存貨管理
- 自有物業提供額外租金收入來源
- 鞏固集團長遠全方位解決方案供應商定位
董事會認為，這項收購長遠將提升公司價值，若能有效釋放中國市場潛力及營運協同，對股價具正面催化作用。
目標公司財務資料
- 2025年收入：236萬人民幣，稅後虧損約54萬人民幣
- 2025年12月31日總資產約7,370萬人民幣，淨資產約520萬人民幣
- 2025年物業租金收入約240萬人民幣
目標公司為股東銀行貸款（3,800萬人民幣）提供擔保，該擔保於交易完成前將解除。
後續安排
公司預期2026年7月7日或之前派發通函，詳列交易、財務及估值報告，隨後召開股東特別大會決議。
交易尚需滿足條件方可完成，股東及潛在投資者交易股份時請保持審慎。
免責聲明
本文僅供參考，並不構成任何投資建議。投資者應參考公司正式通函及諮詢專業顧問後作出投資決定。
