*ST Hexin buys quantum-computing supplier stake for $57.2M to escape delisting
What's the deal? China's *ST Hexin (688622.SH) will acquire a 56% stake in Shanghai Liangxi TechnologyDealroom has a profile for this one. Try Dealroom → for US$52.5M (roughly $57.2 million), using a mix of new shares and cash. The transaction also allows the company to raise up to US$20.7M in matching funds.
What does each side do? *ST Hexin is a Shanghai-listed instruments maker under delisting-risk treatment. Liangxi builds ultra-low-temperature, weak-signal measurement equipment and is a domestic supplier of dilution refrigerators for superconducting quantum computing — a niche benefiting from US export controls that push Chinese buyers toward local suppliers.
Why now? *ST Hexin's 2025 revenue fell 51% to US$13.7M, and it lost US$130.4M, triggering delisting-risk status. It stayed loss-making in the first half of 2026, making the deal central to its survival.
By the numbers: On a pro forma basis, first-half 2026 net profit swings to a US$2.57M profit from a US$2.87M loss. The 2025 net loss narrows from US$13.3M to US$6.5M. Liangxi's 2025 revenue of US$21M exceeds the listed company's own, making this a major asset restructuring.
What could go wrong? The deal values Liangxi's full equity at US$94.5M — a 744% premium over book net assets — creating US$22.8M in goodwill and real impairment risk. Liangxi's revenue is concentrated, with its top five customers accounting for up to 86.64% in one period, and demand hinges on early-stage quantum computing and government research budgets.
What's the catch? This is a related-party restructuring: seller Wu Ming will hold 16.53% post-deal, and controlling shareholder Zhou Zhen's voting power drops from 29.33% to 24.48%, though control is unchanged. Wu Ming has committed to cumulative net profit of at least US$26.9M over 2026–2028, with yearly compensation if targets are missed.
What's next? The deal has passed Shanghai Stock Exchange review and obtained China Securities Regulatory Commission registration, with no further approvals pending. The regulator cleared registration on November 5, moving the purchase toward completion.
The signal: The acquisition shows a struggling listed company reaching into China's quantum-computing supply chain to engineer a turnaround. The pro forma profit is a potential fix, not proof of recovery — closing, target performance, and goodwill all remain the tests that matter.
Read more: minichart.com.sg
Image credit: Generated with Gemini
