Amid the ongoing boom in the semiconductor industry, Shanghai Nar Industrial Co., Ltd. (002825) is keen to join this sector. Less than three months after the failed acquisition of Jiangxi Lanwei Electronics Technology Co., Ltd. ("Lanwei Electronics"), Nar Industrial announced on the evening of October 15 plans to acquire a semiconductor business, specifically targeting Shanghai Filai Testing Technology Co., Ltd. ("Filai Testing"). Notably, Nar Industrial has been experiencing significant fluctuations in its performance in recent years as it accelerates its entry into the semiconductor field.
On October 16, Nar Industrial's stock surged by the daily limit following news of the proposed acquisition of semiconductor assets.
In an announcement released on the evening of October 15, Nar Industrial stated that it plans to invest in Filai Testing by acquiring shares held by the selling party. Upon completion of this investment, the company will hold at least 51% of the equity in Filai Testing, gaining control of the firm. The estimated transaction amount is approximately between 350 million and 400 million yuan.
Nar Industrial mainly engages in the research, development, production, and sales of digital printing materials, automotive protective films, optical and electronic functional films, and is expanding into core materials for hydrogen energy and membrane electrode projects. Filai Testing focuses on providing reliability testing solutions for semiconductor chips, offering comprehensive solutions from wafers and chips to devices.
Nar Industrial indicated that this transaction will help quickly establish a second growth curve for the company, aiming to stabilize its core business while exploring new fields. The company seeks to enter semiconductor equipment and components sectors to gain new profit growth points and development opportunities.
In the secondary market, on October 16, Nar Industrial’s stock price hit the upper limit, eventually closing at the limit price of 11.89 yuan per share, with a trading volume of 70.03 million yuan, bringing the latest total market capitalization to 4.061 billion yuan.
Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance, commented, "As a strategically emerging industry, the semiconductor sector is expected to maintain a high level of market activity."
While investor enthusiasm is high, the performance of the target company, Filai Testing, has also been strong. In 2024 and the first half of 2025, the company achieved revenue of approximately 123 million yuan and 92.464 million yuan, respectively, with net profits of about 1.9043 million yuan and 22.9338 million yuan in the same periods. Moreover, the transaction includes performance commitments, whereby the counterpart promises that the target company will achieve net profits not lower than 28 million yuan, 36 million yuan, and 48.2 million yuan for the years 2025 to 2027, totaling not less than 112 million yuan.
This acquisition marks Nar Industrial's second attempt to enter the semiconductor field. Earlier this year, in January, the company announced plans to acquire control of Lanwei Electronics, which specializes in semiconductor packaging materials, notably bonding wires, and has other products applicable in audio-video cables, headphones, watch movements, and micro motors. However, this acquisition was terminated in July after six months of planning due to a lack of consensus on the investment agreement and an inability to extend the exclusivity period.
Three months later, Nar Industrial is attempting another acquisition, and Filai Testing is not unfamiliar to them. Since August 2021, Nar Industrial has held an indirect stake in the target company through Jiaxing Huier Equity Investment Partnership (Limited Partnership), providing them with fundamental insights into the target company’s management team and market operations.
Additionally, it was noted that Nar Industrial's director, Chen Ranfang, also serves as a director at Filai Testing.
As Nar Industrial plans to create a second growth curve, its financial performance has shown noticeable volatility in recent years. Financial data indicates that between 2021 and 2024, the company's attributed net profits were approximately 61.657 million yuan, 352 million yuan, 100 million yuan, and 126 million yuan, respectively. In the first half of this year, Nar Industrial achieved revenue of approximately 972 million yuan, marking a year-on-year increase of 4.1%, with a corresponding attributed net profit of about 115 million yuan, reflecting a year-on-year growth of 79.15%.
Regarding related inquiries, Nar Industrial responded that the company secretary and project team members are currently focused on the project and are unable to provide timely responses.