Gasgoo Munich- On February 27, Tianjin Ruixin Chang Technology Co., Ltd. (hereinafter "Ruixin Technology") announced plans to purchase a 51% stake in Wuhu Deheng Automotive Equipment Co., Ltd. (hereinafter "Deheng Equipment") from 10 counterparties, including Tong Xiaoping and Zhang Yapeng. The acquisition will be funded through a combination of share issuance and cash payments. Concurrently, the company plans to issue shares to no more than 35 eligible specific investors—including Huangshan Kaitou Lingsdun Venture Capital Investment Co., Ltd.—to raise supporting funds for the deal.
Image source: Screenshot of announcement
Ruixin Technology, a key player in China's high-end precision aluminum alloy components sector, specializes in electrical automation equipment parts, automotive lightweighting, and thermal management components. Facing persistent performance pressure in recent years, the company views this acquisition as a pivotal move to drive growth through both "industry and capital." The target, Deheng Equipment, focuses on automotive stamping and welding parts as well as integrated smart equipment solutions. Its client roster includes prominent OEMs like Chery Automobile and Leapmotor. In 2025, the company reported revenue of 922 million yuan and a net profit of 72.57 million yuan.
The announcement clarifies that the transaction consists of two parts: the asset purchase via shares and cash, and the fundraising of supporting capital. While the fundraising is contingent on the successful completion of the asset purchase, the acquisition itself will proceed regardless of whether the supporting funds are successfully or fully raised. The pricing benchmark date for the share issuance is the announcement date of the resolution from the fifth meeting of the company's seventh board of directors, with the issue price set at 18.08 yuan per share.
Image source: Screenshot of Ruixin Technology's official website
It is worth noting that as of the announcement date, auditing and valuation work for the transaction have not yet been completed. Consequently, the specific valuation of the target assets and the final transaction price remain undetermined; these will be established through further negotiation between the parties based on filed assessment results. The deal is expected to constitute a major asset restructuring and a related-party transaction, though it will not amount to a reverse IPO. Upon completion, Deheng Equipment will become a holding subsidiary of Ruixin Technology, allowing for synergies in customer resources and product layout that will help Ruixin refine its automotive business segment.
