*ST Weil (002058.SZ) has reached a critical milestone in its significant asset restructuring plan. On July 15, the company disclosed a draft report detailing a major asset acquisition and connected transaction. Earlier that same day, its stock price plummeted to the daily 10% down limit, shrinking its market capitalization to 1.9 billion yuan.
This development follows the company's initial announcement on December 19, 2024, regarding plans to obtain control of Zijiang New Material through a cash-for-equity transaction. After over seven months of preparations, the deal has now entered a decisive phase. According to the draft agreement, *ST Weil proposes to acquire 30.2983 million shares representing 51% ownership in Zijiang New Material from sellers including Zijiang Enterprise, Changjiang Chendao, Amperex Technology Limited (ATL), and Huiyou Chuangjia through cash payments. Upon completion, *ST Weil will become the controlling shareholder of the target company.
Zijiang New Material specializes in developing, manufacturing, and distributing aluminum plastic film for soft-package lithium batteries. An independent valuation assessed the company's total equity at 1.07 billion yuan, translating to a 546 million yuan transaction price for the controlling stake. This acquisition arrives amid financial distress at *ST Weil, which received a delisting risk warning effective April 30, 2025, after reporting negative 2024 profitability metrics and sub-300 million yuan in adjusted revenue.
The infusion of these quality assets represents a crucial strategic move for *ST Weil's turnaround. The company emphasized Zijiang New Material's established partnerships with leading battery producers including ATL, BYD, Sunwoda, Penghui Energy, and Xinneng'an – relationships forged through years of technical expertise. Post-transaction, *ST Weil will enter the high-growth lithium battery materials sector, fundamentally reshaping its business structure.
While the deal will substantially expand both assets and liabilities on *ST Weil's balance sheet, management anticipates enhanced profitability and solvency following the integration. Sellers provided binding profit guarantees committing Zijiang New Material to deliver minimum annual net profits of 65.5 million yuan (2025), 78.5 million yuan (2026), and 95.8 million yuan (2027). Notably, Zijiang New Material had previously abandoned its A-share IPO ambitions in late 2023.
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