Yanjiang Co., Ltd. (300658) Stock: Double Transformation Through Strategic Acquisition

In early January 2026, the market received unexpected news that instantly changed investors’ perception of one of the leading manufacturers of hygiene materials. Yanjiang Co., Ltd. (300658) stock showed an impressive reaction, rising 11.68% during the last trading day of 2025, closing at 14.82 yuan per share with a market capitalization of 4.9 billion yuan. Such a sharp change in stock value was not without reason — the company announced an ambitious plan to acquire Ningbo Yongqiang Technology Co., Ltd.

Market Reaction: Shares soared to double-digit levels

On January 4, 2026, in the evening, Yanjiang Co., Ltd. officially announced its intention to carry out a significant transaction through issuing additional shares and raising cash. The target was Yongqiang Technology — a company founded in 2019 that has already gained recognition in the field of specialized materials manufacturing. This news immediately impacted the stock price: the market positively evaluated the company’s strategic development direction. Increased investor confidence in long-term prospects was reflected in a dynamic rise in quotes even before the detailed deal scheme was officially announced.

It is worth noting that until the terms of the deal, which were to be disclosed no later than ten trading days later, were detailed, Yanjiang’s stock trading was temporarily suspended to protect the interests of all market participants.

Yongqiang Technology: IC substrate specialist in the world of cutting-edge technology

Beyond being the target of acquisition, Yongqiang Technology itself holds strategic value. Its main specialization is the development and production of IC substrates, high-quality display substrates, and high-frequency materials used in the ecosystem of advanced technologies: from 5G and 6G communications to artificial intelligence, data centers, and Internet of Vehicles.

The company’s client portfolio includes some of the biggest names in the global tech industry — Intel, Huawei, Inspur, Sugon, New H3C, and Accelink. This client roster not only confirms the quality of its products but also guarantees stable demand volumes. Given the rapid development of artificial intelligence and the expansion of 5G/6G infrastructure, demand for IC substrates shows a steady growth trend.

Following several rounds of funding, Yongqiang Technology’s valuation exceeded 1 billion yuan, making this acquisition a strategic move for Yanjiang to expand its economic power and technological portfolio. On December 31, 2025, Yanjiang reached a preliminary agreement with key shareholders of Yongqiang: JIANGQIHE (the actual controller), as well as QIANGYUAN and Ningbo Yuanlu Zai Technology Partnership. Detailed negotiations regarding ownership share, deal parties, and transaction mechanisms are currently underway.

Strategic significance: from materials to technological solutions

For Yanjiang Co., Ltd., which traditionally focuses on manufacturing surface materials for disposable hygiene products, this acquisition represents a significant leap in its business model. Instead of remaining in one industry, the company is beginning to diversify into high-tech materials serving civilian and commercial electronics.

In its 2024 annual report, Yanjiang management already signaled such intentions, highlighting “cautious development of alternative sectors” as one of the key goals for 2025. The Yongqiang Technology acquisition reflects a shift from strategic intentions to concrete actions. This transformation will allow the company to leverage its manufacturing experience and management potential in new market segments.

Core business maintains momentum: steady growth amid globalization

Despite ambitious expansion plans, Yanjiang’s main activity in the disposable hygiene materials segment remains on a growth trajectory. For the first three quarters of 2025, the company reported revenue of 1.295 billion yuan, up 22.99% year-over-year. Net profit reached 42.5018 million yuan, increasing by 27.95% annually. The third quarter was particularly impressive, with net profit of 16.6626 million yuan — a 209.1% increase compared to Q3 2024.

This profit acceleration was driven by product portfolio updates and geographic expansion. The company’s main clients are global leaders in hygiene product manufacturing: Procter & Gamble, Kimberly-Clark, Hengan. Large foreign customers are gradually shifting to medium- and high-quality material series, generating higher profit margins.

Global expansion: from Egypt to the US, profitability rising

Yanjiang’s international strategy is gradually gaining momentum. Currently, the company has manufacturing facilities in Egypt, the US, and India. The Egyptian subsidiary showed the most dynamic growth — in the first three quarters of 2025, its net profitability grew faster than that of the parent company. With a theoretical annual capacity of 12,000 tons, the confirmed capacity is about 10,000 tons, with full capacity expected to be reached in the first half of 2026.

In the US, the American branch plans to start commercial production in 2026, while Indian and US operations are currently near break-even. This geographic diversification reduces dependence on a single market and opens opportunities for profit growth in mainstream segments.

Thus, the strategic acquisition of Yongqiang Technology complements Yanjiang’s existing global expansion system, providing access to advanced technologies and the high-value segment of electronic materials. Market participants await details of the deal, which are expected to be disclosed in the coming days, to better understand how this transformation will influence the company’s long-term development trajectory and stock value.