Kechuang New Material chief to take control in management buyout
What's the deal? Luoyang Kechuang New Material announced on September 28 that shareholder Yu Chunsheng plans to acquire a combined 9.8% stake from four shareholders, becoming the company's new controlling party. The deal value was not disclosed.
How it works: On September 23, Yu — a director at the firm — signed share transfer agreements to buy 8.4279 million shares, or 9.8% of total capital, from Wei Wenxu, Ma Junqiang, Yang Zhanpo, and Wei Wenju. That lifts his direct stake from 5.2% to 15%.
Yu will also form a concert-party agreement with Wei Wenxu and Wei Wenju, giving the group control of 29.99% of voting rights. The four selling shareholders simultaneously dissolved their earlier concert-party arrangement.
The business: Kechuang New Material develops, produces, and sells refractory materials. It posted first-half 2026 revenue of US$10.9M, up 42.38% year on year, and net profit attributable to shareholders of US$2.08M, up 115.71%.
Why now? The board said the buyout will change the company's actual controller and argued Yu's manufacturing management experience makes his control beneficial for a stable ownership structure.
The signal: Management buyouts remain a route for insiders to consolidate control at smaller listed Chinese firms, particularly ones showing sharp earnings growth. Yu's move ties leadership more closely to a business that has more than doubled its half-year profit.
Read more: sohu.com
Image credit: Generated with Gemini
