Ningbo Xusheng Group Co.,Ltd. Announces Change in Actual Controller to Guangzhou Municipal Government

Deep News2025-12-24

On December 23, Ningbo Xusheng Group Co.,Ltd. (603305.SH) announced significant progress in its change of control. The company's controlling shareholder will shift to Guangzhou Industrial Investment Holding Group Co., Ltd. ("GIIHG"), with the actual controller becoming Guangzhou Municipal Government.

Founded in 2003, Ningbo Xusheng Group specializes in R&D, production, and sales of precision aluminum-magnesium alloy automotive components and core aluminum-magnesium parts for residential/commercial energy storage systems. The company went public in 2017 and maintained strong growth until 2024, when it faced performance pressure. Its 2024 annual report showed revenue of RMB 4.409 billion, down 8.79% year-on-year, and net profit attributable to shareholders of RMB 416 million, plunging 41.71%.

According to the announcement, on December 22, 2025, GIIHG and its wholly-owned subsidiary Guangzhou Industrial Investment Auto Parts Group Co., Ltd. ("GII Auto Parts") signed a control rights acquisition agreement with Xu Xudong, his spouse Chen Xingfang, and their concert parties Ningbo Meishan Free Trade Port Zone Xusheng Holding Co., Ltd. ("Xusheng Holding") and Hong Kong Xuri Industrial Co., Ltd. ("Xuri Industrial"). Xu Xudong agreed to transfer 51% equity in Xusheng Holding to GIIHG, while Chen Xingfang will transfer 16% and 33% stakes in Xusheng Holding to GIIHG and GII Auto Parts respectively.

On the same day, GII Auto Parts, Xuri Industrial, and Xu Xudong executed a share transfer agreement, with Xuri Industrial and Xu Xudong each transferring 28.9 million unrestricted tradable shares (2.5006% of total shares) to GII Auto Parts.

Post-transaction, GIIHG and its concert parties will collectively hold 27.0455% of Ningbo Xusheng Group, while Xu Xudong's group will retain 21.6162%. The total consideration for the deal amounts to RMB 4.295 billion. Xu Xudong provided performance guarantees: non-GAAP net profit attributable to shareholders shall reach no less than RMB 400 million in 2026, RMB 900 million cumulatively for 2026-2027, and RMB 1.5 billion for 2026-2028.

Public records indicate GIIHG has strong industrial foundations and technical expertise across multiple sectors including intelligent building equipment, engineering machinery, marine equipment, industrial gases, new materials, refrigeration appliances, and rubber chemicals. It controls seven listed companies. Guangzhou Municipal Government directly holds 90% of GIIHG, serving as its ultimate controller.

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