Xingwang Ruijie announced on the evening of August 14 that it plans to acquire a 46% stake in its associate subsidiary Guangzhou Xinde Communication Technology Co., Ltd. for 396 million yuan in cash. After the transaction, its shareholding will rise to 67%, making Guangzhou Xinde a controlling subsidiary. Guangzhou Xinde is a national-level specialized and innovative 'little giant' that has been deeply engaged in the optical communication access field for nearly twenty years. In 2025, it achieved operating revenue of 742 million yuan and net profit of 65.91 million yuan. This transaction includes performance commitments, with the promisor committing to non-GAAP net profit of no less than 75 million yuan in 2026 and 80 million yuan in 2027, totaling no less than 155 million yuan. Xingwang Ruijie stated that Guangzhou Xinde's optical access equipment business, which focuses on international markets, is highly complementary and synergistic with the company's optical communication segment. After the transaction, Guangzhou Xinde will be consolidated into the financial statements and is expected to enhance the company's profitability in the optical communication field. The 2026 semi-annual report disclosed on the same day shows that Xingwang Ruijie achieved operating revenue of 10.729 billion yuan in the first half of the year, a year-on-year increase of 20.73%, and net profit attributable to the parent company of 373 million yuan, a year-on-year increase of 75.86%.
Fujian Star Net Communic LtdAcquiring 46% of Guangzhou Xinde for 396M yuan, increasing stake to 67%, with performance commitments and expected profitability boost.
Being acquired at a valuation implying 396M for 46%, with performance commitments ensuring future profits.
