Zhongyan Technology Co.,Ltd. (ASX: 003001) has announced its intention to acquire a 60% equity stake in Shenzhen Xinhuanyu Precision Technology Co., Ltd. through a combination of cash purchase and capital increase.

The target company has committed to achieving a combined audited net profit attributable to the parent company's shareholders, excluding non-recurring gains and losses, of no less than 1 billion yuan for the period from 2026 to 2028.

Upon completion of the transaction, Xinhuanyu will become a controlled subsidiary of Zhongyan Technology.

Xinhuanyu is a specialized and sophisticated domestic enterprise focused on PCB precision drill bits and milling cutters.

Its core product range includes drill bits for PCB and FPC, coated drill bits, diamond tools, and milling cutters.

As of the announcement date, the company holds over 30 patents and has established an annual production capacity of 80 million PCB drill bits.

Xinhuanyu's current mass-produced PCB drill bits can achieve a minimum diameter of 0.03mm and an aspect ratio of up to 50 times, and it can provide customers with comprehensive coating process solutions.

The successful implementation of this transaction will expand Zhongyan Technology's business into the PCB drill and milling cutter sector, which is expected to have a positive impact on the company's future industrial expansion and operational performance.