After a five-day trading suspension, Hubei Chaozhuo Aviation Technology Co.,Ltd. (SH:688237) has announced a change in its controlling shareholder.
On November 28, the company disclosed that its controlling shareholders—Li Guangping, Wang Chunxiao, and Li Yihan—signed an agreement with Hubei Transportation Investment Capital Co., Ltd. (JT Capital) to transfer 20.93% of shares at RMB 41.16 per share, totaling RMB 772 million. Li Yihan will relinquish voting rights for remaining shares. Post-transaction, JT Capital will become the new controlling shareholder, with ultimate control transferring to Hubei Provincial State-owned Assets Supervision and Administration Commission (SASAC).
The company’s shares will resume trading on December 1.
**Discount and Strategic Shift** The transfer price represents a 20% discount to the closing price of RMB 51.45 on November 21. The deal combines share transfers with voting-right waivers to ensure smooth transition.
Chaozhuo cited limited scale and capital constraints as motivations for the change, noting JT Capital’s backing by Hubei Transportation Investment Group—a provincial SOE with industrial resources—will bolster long-term growth. The transaction remains subject to regulatory approvals.
**Growth Synergies** Chaozhuo, a 2022 STAR Market-listed high-tech firm specializing in additive manufacturing and aerospace components, faces scalability challenges despite revenue growth. Its 2025 Q3 revenue edged up 0.74% YoY to RMB 271 million, while net profit fell 44.28% to RMB 11.14 million.
The Hubei SASAC’s move aligns with state capital’s strategic focus on advanced manufacturing. Acquiring Chaozhuo accelerates entry into aerospace—a sector with high barriers and synergies for provincial industrial upgrading.
This deal underscores regional SOEs’ push to dominate emerging industries through targeted acquisitions.
