China's Huajie moves to buy chip-test firm Geliming in contested two-step deal
What's the deal? Shanghai-listed Huajie TechnologiesDealroom has a profile for this one. Try Dealroom → (603400.SH) said on September 29 it plans to acquire the remaining 83.5052% of Suzhou GelimingDealroom has a profile for this one. Try Dealroom → Electronic Technology from founder Zhao Die through a mix of new shares and cash, taking full ownership. The move follows a first step on September 24, when Huajie paid US$11M in cash for an initial 16.4948% stake.
Who is being bought? Founded in April 2020, Geliming makes precision tooling and core components for semiconductor testing. The small "specialised and innovative" firm employed 32 people in 2025 and posted revenue of US$8.58M with net profit of US$1.86M.
Why the two steps? Huajie said it feared losing the target. "The company had previously engaged with Geliming and its founder and conducted due diligence," a securities affairs staffer said, adding it bought early to avoid the target being "snapped up" by a rival before shareholder approval.
The US$11M entry price implies an overall valuation of roughly US$66.7M, which the company called "reasonable, and not high." Huajie's fourth board approved the deal but chose not to convene a shareholders' meeting, as auditing and valuation remain incomplete.
What could go wrong? Lawyers question whether the first step skirted disclosure rules. Under Shanghai Stock ExchangeDealroom has a profile for this one. Try Dealroom → rules, purchases hitting any of several thresholds — total assets, net assets, deal value, revenue, or net profit — trigger board review and disclosure.
"The absence [of a board process] is hard to explain simply by 'the amount didn't meet the threshold,'" said lawyer Liu Peng, noting regulators show "low tolerance" for such "act first, report later" moves.
Securities lawyer Wang Zhibin argued the structure weakens minority shareholders' votes: if the second step is rejected, Huajie would hold only a minority stake after already paying US$11M. With part of the price already settled, he said, a "yes" and a "no" are no longer equal choices.
The signal: Chip-testing suppliers are prized targets in China's push for semiconductor self-sufficiency, and buyers are moving fast to lock them down. Huajie's staggered approach shows how competitive deal-making can collide with listed-company governance — a tension likely to draw exchange scrutiny as the transaction proceeds.
Read more: sohu.com
Image credit: Generated with Gemini
