Yifei Laser to Acquire Xingqihang for 400 Million CNY

Yifei Laser announced its intention to acquire 100% of the equity of Shenzhen Xingqihang Automation Equipment Co., Ltd. for a total cash payment of 400 million CNY.

TMTPost reported the story.

To fund the transaction, Yifei Laser plans to use 224 million CNY from funds raised in excess of its initial public offering, with the remaining balance covered by its own funds. The acquisition target, Xingqihang, was founded in 2014 and specializes in automation coupling equipment and packaging for optical modules. Its product range includes coupling equipment for TO-CAN, COB, BOX, and FA fiber arrays, integrating processes such as ultraviolet glue curing, thermal curing, and laser welding. The company is also expanding into 1.6T high-speed coupling and CPO co-packaging technologies, serving leading global optical module manufacturers.

Financial data for Xingqihang shows that in 2025, the company achieved operating revenue of 54.1756 million CNY and a net profit of 11.1555 million CNY. For the first five months of 2026, it recorded revenue of 37.4147 million CNY and a net profit of 10.3439 million CNY. As of the valuation benchmark date of May 31, 2026, the book value of the net assets of Xingqihang was 63.709 million CNY. However, the valuation using the income approach reached 403 million CNY, representing an appreciation of 339 million CNY and an appreciation rate of 532.56%.

Yifei Laser justified the high premium by citing the rapid development of the optical communication industry, which is experiencing capacity expansion and technical upgrades driven by communication technology and AI computing power. The sellers have provided a performance commitment stating that the cumulative non-recurring net profit from 2026 to 2028 will not be lower than 93 million CNY, averaging approximately 31 million CNY per year.

Yifei Laser, which listed on the Science and Technology Innovation Board in 2023, primarily focuses on intelligent precision laser processing equipment for new energy power battery manufacturing. The company has faced financial pressure due to a cyclical adjustment in the lithium battery equipment industry. In 2025, Yifei Laser reported revenue of 803 million CNY, a year-on-year increase of 16.03%, but suffered a non-recurring net loss of 75.26 million CNY. For the first three quarters of 2026, revenue grew 76.36% year-on-year to 1.014 billion CNY, though it still recorded a non-recurring net loss attributable to the parent company of 7.5451 million CNY.

The company stated that the acquisition is a synergistic industrial merger based on its core capabilities in intelligent equipment and lasers. Yifei Laser intends to use this move to enter the optical communication equipment field, expand its product system, and explore the potential of laser processing technology in optical communications and AI computing to create a new growth point.