Longcheer Technology has acquired 60% equity of Kejuncheng Precision Technology (Dongguan) Co., Ltd. (hereinafter referred to as "Kejuncheng") and Dongguan Jiya Metal Products Co., Ltd. (hereinafter referred to as "Jiya Metal", which has the same equity structure as Kejuncheng but a smaller operating scale) for a total consideration of RMB 540 million. Upon completion of the transaction, Kejuncheng and Jiya Metal will become holding subsidiaries of Longcheer Technology and will be consolidated into its financial statements.
Kejuncheng is a high-tech enterprise specializing in high-precision metal etching technology. It provides precision metal processing solutions — including metal etching, laser cutting, and stamping — primarily for customers in the consumer electronics industry. The company’s business mainly involves the etching processing and related manufacturing of VC (vapor chamber) vapor chambers and precision metal parts. Its products are widely used in heat dissipation modules and related structural components for devices such as smartphones and tablets.
The direct customers of Kejuncheng mainly include leading thermal module manufacturers such as Asia Vital Components, AAC Technologies, Xunqiang Electronics, Suzhou Tianmai, and Auras Technology, while its end customers are primarily global top-tier consumer electronics brands, including a major North American customer. In the field of VC vapor chamber etching processing for mobile phones, Kejuncheng is one of the earliest entrants in China and possesses the largest production capacity reserve. Its relevant technology is leading in domestic niche sectors, and it has become a major metal etching supplier for key customers in North America.
This acquisition is an important step for Longcheer to accelerate its global expansion and continue advancing its key customer strategy and product strategy. By acquiring Ke Juncheng, and particularly through the effective integration of customer resources with Ke Juncheng, the company can accelerate its breakthrough momentum with global top-tier customers and in the North American market. At the same time, as the demand for thermal dissipation in AI terminals continues to grow rapidly, Longcheer's deployment of high-precision metal etching technology will further strengthen its leading edge in technological innovation for AI on-device products, accelerating the implementation of its "1+2+X" product strategy.
After the acquisition is completed, the two parties will achieve deep integration in areas such as customer resources, product resources, and manufacturing. By acquiring Ke Juncheng, Longcheer will horizontally expand its precision metal business product line, strengthen customer resource accumulation, and enhance manufacturing capabilities. Longcheer will also assist Ke Juncheng in further expanding its customers, product categories, and downstream applications. At the same time, the completion of this transaction will further increase Longcheer's asset scale, operating revenue, and profit levels, effectively enhancing the company's comprehensive competitiveness and sustainable development capability.