On February 27, the capital market in Changzhou saw new developments.
Changzhou Zhongying Science&Technology Co.,Ltd. disclosed its plan to acquire no less than 51% equity of Changzhou Yingzhong Electric Co., Ltd. via a cash transaction. The sellers—Yu Yingzhong, Zhu Lijuan, and Yu Biao—are all individual shareholders, with Yu Yingzhong being the brother of the listed company's actual controller, Yu Weizhong. This significant related-party asset reorganization reunites a company specializing in high-frequency communication materials with a family-owned enterprise focused on insulating fiber materials.
This marks another acquisition attempt by Zhongying Technology in a short period. In July 2024, the company had planned to acquire 55% of Suzhou Botemeng Motor, but the deal was terminated in December of the same year after nearly five months of negotiations. The reason given at the time was "changes in market conditions and failure to reach agreement on core terms." Now, turning to assets controlled by the actual controller's brother, the strategy has shifted from "cross-sector expansion into new energy" back to "internal family consolidation," adopting a more direct approach.
At the forefront is Yu Weizhong, born in 1961, who progressed from the technical R&D department of Wujin Building Materials Industry Company to founding Zhongying Pipeline, and later establishing Zhongying Technology in 2006. After the company's corporatization in 2016, he assumed the roles of Chairman, General Manager, and Legal Representative, while also establishing an employee持股 platform—Changzhou Zhongying Huicai Equity Investment Management Center (Limited Partnership)—serving as its General Partner. His resume shows long-term concurrent roles as Director of the Strategy Committee and Member of the Nomination Committee, holding sway over both strategic direction and personnel decisions.
The financial trajectory provides a realistic backdrop for this reorganization. In 2021 and 2022, the company's operating revenue grew by 3.41% and 13.94% respectively, but net profit attributable to shareholders fell by 10.47% and 33.43%. Although net profit saw a significant year-on-year increase of over 324% in 2023, the annual report subsequently received six inquiries. By 2024, net profit attributable to shareholders dropped to 31.64 million yuan, a decrease of 78.3% year-on-year.
The 2025 performance forecast indicates an estimated net profit attributable to shareholders of 1.8 million to 2.7 million yuan, a decline of over 90% year-on-year, with an estimated adjusted net loss of 5 million to 9 million yuan—marking the first adjusted net loss since listing.
Compared to its main businesses of high-frequency copper-clad laminates and VC cooling sheets, Yingzhong Electric focuses on insulating fiber materials and their molded products, covering supporting equipment for medium-low voltage to ultra-high voltage power transmission and transformation. While one serves communication base stations and mobile phone cooling, the other targets power transmission and transformation equipment, creating parallel business tracks and expanding the operational scope. Post-transaction, Yingzhong Electric will be included in the consolidated financial statements.
Management structure is also evolving. Deputy General Manager Gu Shuchun, who served for about nine years, and Financial Director He Zehong both departed in November 2025. These long-serving core managers, with experience spanning production, finance, and internal management systems, witnessed the company's journey from a limited liability entity to a ChiNext listing.
Amid regulatory emphasis on reduced and shorter trading halts, the company's shares continued trading without suspension, opting for phased disclosures. This ChiNext-listed company in Changzhou is responding to dual pressures of declining performance and strategic redirection through a related-party family asset reorganization.
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