CH Frontier Technology Group (CH Frontier Tec) has signed a sale-and-purchase agreement to acquire 49% of Ningbo Qihe New Material Technology for RMB19.60 million. The consideration equals 96.8% of an independent valuation of RMB20.25 million dated 31 March 2026.
The valuation, performed by an independent professional valuer, applied the guideline public company method using EV/EBITDA multiples. Five comparable electronic-materials manufacturers listed in Mainland China and Taiwan were selected, producing an unadjusted EV/EBITDA range of 8.01x–17.93x (median 11.88x) after size adjustment. A 42.7% lack-of-marketability discount, derived from the Stout Restricted Stock Study, reduced the median multiple to 6.81x. Multiplying this multiple by Ningbo Qihe’s normalised 2025 EBITDA of RMB7.34 million resulted in an enterprise value of RMB49.97 million and an equity value of RMB41.32 million; the 49% stake was therefore appraised at RMB20.25 million.
Ningbo Qihe develops, produces and trades functional materials such as conductive shielding, cushioning and thermal-management products. Revenue rose from RMB102 million in FY 2024 to RMB109 million in FY 2025, while unaudited consolidated net assets stood at RMB20.17 million as of 23 April 2026.
Management expects post-transaction synergies: CH Frontier Tec’s trading network can expand Ningbo Qihe’s customer base, while the target’s R&D and production capabilities can broaden product offerings and improve customer experience across the functional-materials supply chain.
Completion remains subject to warranties staying true and the valuation of the 49% stake not falling below RMB19.60 million—conditions that have already been met according to the announcement dated 14 May 2026.
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