Shanghai Yct Electronics Group (301099.SZ) subsidiary plans to acquire a 70% stake in Yongjia Industrial for US$47.6 million.

Shanghai Yct Electronics Group (301099.SZ) announced that its wholly-owned subsidiary, Hong Kong Taixin, plans to acquire a 70% equity stake in Yongjia Industrial (International) Co., Ltd. (including its subsidiaries, referred to as "Yongjia Industrial") by cash payment, with a transaction price of US$47.6 million. Upon completion of the transaction, the company will hold a 70% equity stake in Yongjia Industrial, and Yongjia Industrial will become a controlled subsidiary of the company and be included in the company's consolidated financial statements. It is reported that Yongjia Industrial is an enterprise focusing on electronic component distribution and supporting solution services. The core agency brands of the target company include Beijing Junzheng, Sitronix, Techpoint, Yutai Micro, Fudan Micro, Dioo Microcircuits, Biwin Storage Technology, etc., and it has built a diversified product matrix covering security surveillance core chips (SoC, image sensors), LED drivers, transmission chips, power chips, light source/laser chips, WiFi/Bluetooth chips, storage, etc. With abundant product line resources and technical service capabilities, its products have been widely used in many fields such as consumer electronics, communications, security, industrial control, the Internet of Things (IoT), and automotive electronics, and its sales network covers core markets including Hong Kong, Shenzhen, Hangzhou, Seoul, Singapore, and India. This transaction is a further expansion of the company's electronic component distribution business, aiming to further improve the company's market layout in the field of active electronic components through the acquisition of a high-quality distribution target that is highly complementary to the company's existing resources. At the same time, it will also help broaden the application fields of the company's self-developed IC business. The customer resources and channel network accumulated by Yongjia Industrial provide important channel support for the large-scale introduction and customer verification of self-developed ICs, promoting the accelerated implementation of the "distribution + self-development" dual-wheel drive strategy.