On January 30, global sputtering target leader Jiangfeng Electronics and domestic quartz materials frontrunner Kaide Quartz simultaneously announced that Jiangfeng Electronics intends to acquire control of Kaide Quartz with cash; upon completion of the transaction, Kaide Quartz will become its controlled subsidiary.
Prior to the trading halt, Jiangfeng Electronics' stock price closed at 113.48 yuan per share, giving it a market capitalization of 30.1 billion yuan; Kaide Quartz's stock price closed at 50.89 yuan per share, with a market capitalization of 38 billion yuan.
As a "hidden champion" in the global semiconductor target market, Jiangfeng Electronics ranked first globally in target shipment volume and second in shipment value for 2024; its products are already applied in advanced processes such as 7nm, 5nm, and even 3nm, serving leading manufacturers like TSMC, SMIC, and SK Hynix.
From 2020 to 2024, the company's revenue surged from 1.167 billion yuan to 3.605 billion yuan, while its net profit attributable to shareholders climbed from 147 million yuan to 401 million yuan; for the first three quarters of 2025, net profit grew 39.72% year-on-year to reach 401 million yuan.
The acquisition of Kaide Quartz marks a pivotal step in its expansion into the semiconductor precision components sector. Kaide Quartz is a core domestic supplier of semiconductor quartz products, covering key process steps like diffusion, oxidation, and etching; its gross margin reached 44% in the first half of 2025, significantly higher than the 23.65% gross margin of Jiangfeng Electronics' precision components business during the same period. Analysis suggests this transaction could enhance Jiangfeng Electronics' strategic positioning in non-metallic materials, unlocking value through upstream-downstream integration and complementary customer resources, thereby driving revenue growth and profit optimization.
Regarding transaction specifics, the counterparties are Kaide Quartz's actual controller, Zhang Zhongshu and his spouse, along with their concerted parties, who collectively hold a 40.41% stake. Based on the current share price, acquiring this portion would require approximately 1.535 billion yuan in cash; however, as of the end of the third quarter of 2025, Jiangfeng Electronics held only 1.390 billion yuan in monetary funds, while also carrying 495 million yuan in short-term borrowings and 757 million yuan in non-current liabilities due within one year.
Fortunately, Jiangfeng Electronics is currently advancing a 1.928 billion yuan private placement plan. According to the arrangement, 30% (approximately 574 million yuan) is earmarked for supplementing working capital or repaying loans, with the remaining funds allocated to an industrial project for the annual production of 5,100 electrostatic chucks for integrated circuit equipment, an industrial project for the annual production of 12,300 ultra-high purity metal sputtering targets, and the simultaneous construction of an R&D and technical service center.
The market widely anticipates that the transaction will likely employ a combined approach of "partial equity acquisition + relinquishment of voting rights by the original controller," which would both manage capital outlay and secure substantive control over Kaide Quartz.
As the localization of semiconductors accelerates in China, this cross-border union of "metal + quartz" may reshape the landscape of the country's semiconductor materials industry. The market watches with bated breath to see if this 30.1 billion yuan giant can forge a new path of self-reliance and control through the challenging waters of M&A integration.
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