CONFIDENCE IN: Plans to acquire the remaining 30% equity of Chongqing CONFIDENCE IN Technology for 40 million yuan
CONFIDENCE IN plans to acquire 30% equity in Chongqing CONFIDENCE IN Technology for 40 million yuan, and upon completion, will hold 100% equity. This move will enhance the group's flexibility in technology development and resource allocation, maximize profitability, and simplify decision-making processes. The target company focuses on surface mount technology processing services and is expected to strengthen the group's competitiveness in the electronic manufacturing services market
According to the announcement from Xinkeng Intelligent (01967), on October 17, 2025, the buyer (Shenzhen Xinkeng Intelligent Electronics Co., Ltd., a wholly-owned subsidiary of the company) intends to acquire 30% equity of the target company (Chongqing Xinkeng Technology Co., Ltd.) from the seller (Mr. Chen Wensheng) for a total consideration of RMB 40 million.
The target company mainly engages in surface mount technology processing services, which is a core part of the electronic manufacturing services industry. Surface mount technology involves the precise manufacturing process of automatically installing and soldering electronic components onto printed circuit boards, which is crucial for the production of electronic devices and components. As of the date of this announcement, the company holds 70% equity in the target company. Upon completion, the company will hold 100% equity in the target company, and the financial performance of the target company will continue to be consolidated into the company's financial statements.
The board of directors believes that the acquisition aligns with the group's strategy, as obtaining full ownership will (i) enhance the group's flexibility in technology development, strategic planning, and production resource allocation; (ii) allow the group to maximize returns from the target company's proven profitability (with a net profit margin of approximately 19.4% for the fiscal year 2024) without considering minority shareholder interests, thereby strengthening the group's overall financial performance; (iii) streamline decision-making processes and unify management control, especially in strategic planning and market expansion initiatives. Through comprehensive resource integration and knowledge sharing within the group's ecosystem, the group will be able to more efficiently seize market opportunities in the electronic manufacturing services industry through the operations and business development of the target company, thereby enhancing its own capabilities and pursuing more business opportunities
