Honghua Digital Technology Acquires 49% Stake in Yingkejie For 105 Million Yuan

On the evening of December 8, Honghua Digital (688789) threw out a blockbuster acquisition announcement, announcing that it intends to acquire 49% of the equity of Shandong Yingkejie Digital Technology Co., Ltd. (hereinafter referred to as "Yingkejie") for 105 million yuan of its own funds or self-raised funds. After the completion of the transaction, Honghua Digital will achieve 100% control of Yingkejie, and Yingkejie will become its wholly-owned subsidiary.

According to the report of the appraisal agency Kunyuan Asset Appraisal Co., Ltd., the appraisal value of Yingkejie's total shareholders' equity is 217 million yuan, compared with the book value of 90.79 million yuan, an appreciation of 126 million yuan, and the appreciation rate is as high as 138.51%. This data not only reflects the potential value of Yingkejie in the market, but also provides strong support for the acquisition of Honghua Digital. The high value-added rate means that Yingkejie has a strong competitive advantage in technology, market and other aspects, which will play a positive role in promoting the future development of Honghua Digital.

In fact, this acquisition is not the first time that the two companies have joined hands. Back in July 2023, Honghua Digital acquired a 51% stake in Yingkejie for 70 million yuan, including it in the scope of the consolidated statements. In more than two years of cooperation, the two sides have achieved remarkable results in channel complementarity and technical collaboration, and Honghua Digital's market share in non-textile fields such as book printing has increased rapidly. The further acquisition of the remaining equity is not only a full recognition of the effect of the previous cooperation, but also demonstrates Honghua Digital's determination to deepen its diversified layout. From the details of the transaction, the acquisition price is paid in three installments, of which the third phase of 30 million yuan is linked to the performance commitment, and the transferor promises a cumulative net profit of not less than 100 million yuan.

Honghua Mathematics

As the acquirer, Honghua Digital's industry leading position provides solid support for this integration. Founded in 1992, Honghua Digital has been deeply involved in the field of digital printing for 30 years, is an enterprise with digital printing technology as the core, focusing on the application of textile digital printing industry, the main products are digital direct injection printing machines, digital inkjet transfer printing machines, ultra-high-speed industrial printing machines and inks, etc., of which digital printing equipment is the core business of Honghua Digital accounts for a high proportion. In the first three quarters of 2025, Honghua Digital achieved operating income of 1.63 billion yuan, up 29.0% year-on-year; the net profit attributable to the parent company was 388 million yuan, up 25.1% year-on-year. Among them, in the third quarter, the company's operating income was 594 million yuan, up 32.4% year-on-year; net profit attributable to the parent company was 137 million yuan, up 25.0% year-on-year. Honghua Digital said that the performance growth is mainly due to the opportunity of digital transformation of traditional processes in downstream industries, and the company actively expands the market, and product sales have achieved year-on-year growth.

Yingkejie

The acquired company, Yingkejie, is a leading enterprise in the field of high-speed inkjet printing. Founded in 2018, it is a new technology company focusing on the research and development, manufacturing, and after-sales service of industrial inkjet technology. It is dedicated to providing global users with high-quality, intelligent, environmentally friendly, and internationally advanced rotary inkjet digital printing solutions. The company's products mainly include high-speed inkjet digital printing equipment and high-quality inks of different widths and configurations, such as the 440, 560, 660, 880, and 330 series, offering black/dual-color and four-color or more options. Except for the 560, 880, and 330 series, which are newly developed with a shorter sales history, the other products have already achieved scaled sales. Yingkejie possesses many technological advantages, including stable inkjet control technology, a well-developed software workflow system, advanced manufacturing processes, and high-quality inks, ensuring product sales. With the development of the high-speed inkjet printing market and the successful market penetration of its products, the company's revenue has steadily increased in recent years.

This integration will create a "1+1>2" synergy for both parties. Honghua Digital Technology's accumulated brand advantages, channel resources, and large-scale production capabilities in the textile printing sector, combined with Yingkejie's accumulated technology in high-speed inkjet printing, will form strong synergy and complementarity.

From a business structure perspective, Honghua Digital Technology primarily focuses on the textile sector, while Yingkejie has been deeply engaged in non-textile areas such as book and commercial printing. After becoming a wholly-owned subsidiary, Honghua Digital Technology can strengthen its strategic layout in the book printing segment, further improve operational standards, optimize governance structure, and effectively enhance business efficiency.

At the R&D level, the core technologies of both parties can be leveraged, potentially accelerating the launch of more competitive intelligent and environmentally friendly products, aligning with the industry trend of "high efficiency and environmental protection."

At the management level, both parties will further improve decision-making efficiency and promote deep integration in teams, management, and corporate culture.

From the perspective of industry development, this acquisition not only enables both parties to achieve dual breakthroughs in "technology and market" within the high-speed inkjet sector but is also expected to stimulate the industry's intrinsic innovation capabilities, accelerate R&D and performance improvement of domestic high-speed inkjet printing equipment, enhance the core competitiveness of such equipment in China, and empower high-quality development in the industry.