ShenZhen YUTO Packaging Technology Co., Ltd. agreed to acquire 51% stake in Dongguan Huayan New Materials Technology Co., Ltd from Shenzhen Guandian Investment Co., Ltd. for approximately CNY 450 million.
ShenZhen YUTO Packaging Technology Co., Ltd. (SZSE:002831) agreed to acquire 51% stake in Dongguan Huayan New Materials Technology Co., Ltd from Shenzhen Guandian Investment Co., Ltd. for approximately CNY 450 million on February 10, 2026. A cash consideration of CNY 448.8 million will be paid by ShenZhen YUTO Packaging Technology Co., Ltd. As part of consideration, CNY 448.8 million is paid towards common equity of Dongguan Huayan New Materials Technology Co., Ltd. Shenzhen YUTO Packaging Technology Co., Ltd. has structured the payment terms for acquiring a 51% stake in Dongguan Huayan New Materials Technology Co., Ltd. from Shenzhen Guandian Investment Co., Ltd. into three installments. The first installment, amounting to CNY 269.28 million (60% of the total payment), is due within 20 business days from the effective date of the share transfer agreement. The second installment of CNY 89.76 million (20% of the total payment) is contingent upon the target company achieving at least 80% of its cumulative non-GAAP net profit commitment for 2026 and 2027, and is payable within 30 working days after the 2027 audit report is confirmed. The final installment will be settled in a lump sum within 30 working days following the confirmation of the 2028 audit report, based on the target company's actual average net profit after deducting non-recurring items, post the performance commitment period.
As of August 31, 2025, Dongguan Huayan New Materials Technology Co., Ltd reported total assets of CNY 784.89 million and total common equity of CNY 218.78 million.
The transaction is subject to approval of offer by acquirer board and approved. As on February 27, 2026, ShenZhen YUTO shareholders approved the deal.
ShenZhen YUTO Packaging Technology Co Ltd is a China-based company mainly engaged in providing one-stop packaging solutions. The Company's one-stop packaging solution integrates creative design, structural design, technology development, product prototyping, color management, third-party procurement, warehouse management and logistics distribution, among other links. The Company's main products include paper packaging, plant fiber eco-friendly packaging, degradable new material products, flexible packaging, functional material die-cutting, cultural and creative printing products, labels, reflective films, consumer electronic components and other new materials. The Company's fields include consumer electronics, alcohol, personal care, food, healthcare, tobacco, and others.
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
ShenZhen YUTO Packaging Technology Co., Ltd. agreed to acquire 51% stake in Dongguan Huayan New Materials Technology Co., Ltd from Shenzhen Guandian Investment Co., Ltd. for approximately CNY 450 million.
