Acquisition target signs a performance commitment of 2.1 billion yuan.
Written by丨Lieyun Selected ID: lieyunjingxuan
Author丨Shao Yangang
Oil companies are also venturing into chip manufacturing.Recently, Heshun Petroleum, known as the “first private gas station stock,” plans to acquire 34% of the semiconductor IP company Kuixin Technology for no more than 540 million yuan, and through voting rights entrustment, control an additional 17% of the shares, ultimately controlling 51% of the voting rights of Kuixin Technology, making it a subsidiary of Heshun Petroleum.As a result of this news, the capital market has responded positively. On November 17 and 18, Heshun Petroleum’s stock price hit the limit up for two consecutive days, with a market value of 5.742 billion yuan as of November 20. However, the “pre-limit up” on November 14 before the announcement has raised many questions.By 2025, there will be dozens of A-share companies acquiring chip assets, and “cross-industry marriages” are often discussed. In recent years, companies like Greenway Technology, which makes electric vehicles, Mona Lisa, which produces architectural ceramics, Yongji Co., which prints cigarette labels, and Yingxin Development, which is in real estate, have all shown a keen interest in the semiconductor industry.However, venturing into the semiconductor industry presents opportunities but also many uncertainties. Whether selling shells or genuinely preparing to cross over, listed companies must face the counteraction brought by introducing chip assets.
“The first private gas station stock” explores the second curve of semiconductors
There are many cases of restructuring and mergers in the semiconductor industry, but Heshun Petroleum is the first in the oil industry to enter the chip sector to create a second growth curve.According to Heshun Petroleum’s announcement, it plans to acquire no less than 34% of Shanghai Kuixin Technology through equity acquisition and capital increase, while Kuixin Technology’s founder Chen Wanyi will entrust 17% of the voting rights to Heshun Petroleum, allowing Heshun Petroleum to ultimately control 51% of the voting rights, making Kuixin Technology a subsidiary of Heshun Petroleum. The transaction amount is expected to be no more than 540 million yuan, corresponding to an overall valuation of Kuixin Technology after the capital increase of no more than 1.588 billion yuan.As a result of this news, on November 17 and 18, Heshun Petroleum’s stock price hit the limit up for two or three consecutive days. However, shortly after the announcement on November 14, Heshun Petroleum’s stock price also hit the limit up, raising market suspicions about the truth behind the acquisition.While acquiring shares in Kuixin Technology, Heshun Petroleum also bound the equity.It is reported that Heshun Petroleum’s actual controllers Yan Ximing, Zhao Zunming, and their concerted actors Zhao Xiong (Yan Ximing, Zhao Zunming, and Zhao Xiong are respectively the wife, son, and brother of founder Zhao Zhong) plan to transfer a total of 10.3144 million shares of the company, accounting for 6% of the total share capital, to Kuixin Technology’s actual controller Chen Wanyi through a negotiated transfer. The announcement shows that the transfer price per share is 22.932 yuan/share, with a total price of 237 million yuan.After the equity change is completed, the shareholding ratio of Yan Ximing, Zhao Zunming, Zhao Xiong, and their concerted actors Heshun Investment will decrease from 66.5817% to 60.5817% in Heshun Petroleum.During the acquisition, the actual controllers also transferred shares to the actual controllers of the target company, which means that the funds paid by Heshun Petroleum to Kuixin Technology’s shareholders will flow back to the actual controllers of Heshun Petroleum.Heshun Petroleum was established in 2005 and is a well-known oil company in Hunan Province. In April 2020, Heshun Petroleum successfully listed on the main board of the Shanghai Stock Exchange, becoming the “first private gas station stock.”In recent years, under intense market competition, Heshun Petroleum’s performance has been under pressure. This family-run enterprise, which has been in operation for over twenty years, understands that “starting a business is difficult, and maintaining it is also challenging.” From 2022 to 2024, Heshun Petroleum’s revenue dropped from 3.994 billion yuan to 2.812 billion yuan, and its net profit attributable to the parent company fell from 104 million yuan to 29 million yuan, with performance again suffering in the first half of 2025. Faced with growth difficulties, it can only seek breakthroughs externally.Regarding the reasons for venturing into semiconductors, Heshun Petroleum believes that the semiconductor IP-related industry where Kuixin Technology operates has good development prospects and significant growth potential, and aims to strategically layout in related fields to find new performance growth points to promote the company’s future sustainable development.By 2025, there will be dozens of A-share companies acquiring chip assets, but the purposes vary. Whether selling shells, “similar to backdoor listings,” or genuinely preparing to cross over, all need to face the counteraction brought by introducing chip assets.Heshun Petroleum is also well aware that its main business and Kuixin Technology’s main business belong to different industries, and the listed company has no management experience in the relevant industry before this transaction. The company will face certain challenges in cross-industry operational management capabilities and coordination and integration capabilities.
Acquisition target signs a performance commitment of 2.1 billion yuan
As the target company of this acquisition, Kuixin Technology has an impressive background.Public information shows that Kuixin Technology was established in 2021, focusing on creating high-speed interface IP and Chiplet solutions. It is one of the few companies in China with a complete matrix of high-speed interface IP products and capable of providing complete Chiplet solutions. Currently, Kuixin Technology has built a strategic cooperation network covering international foundries such as TSMC and Samsung, and has developed interface IP covering processes from 5nm to 55nm, widely used in data centers, artificial intelligence, automotive electronics, and consumer electronics fields.Among Kuixin Technology’s core team, founder Chen Wanyi hails from Taiwan and has over twenty years of experience in the IC industry, having served as an operations leader in several semiconductor companies both domestically and internationally, including Synopsys, Alchip, Tongfu Microelectronics, and TFAMD. Additionally, among the three co-founders, Wang Xiaoyang is a former technical expert at Huawei HiSilicon, having served as a chip architect at well-known companies such as Haiguang, Imagination, and Wallen; Tang Rui was the general manager and chief strategy officer of FuriosaAI Inc in the United States, and previously served as an investment director at BOE in the U.S., as well as a research and development engineer at Apple and Oracle; Gong Fang was the sales director for Alchip and the northern sales director for Tongfu Microelectronics.
Source: TianyanchaIn the conventional view of the market, semiconductor companies are characterized by high R&D investment and difficulty in profitability, with many semiconductor startups having negative assets, but Kuixin Technology has already commercialized.It is reported that Kuixin Technology’s business model includes: providing semiconductor IP to chip design companies or foundries, charging a one-time licensing fee according to the contract, and collecting royalties based on the customer’s mass production situation; providing ASIC/Design Service, including wafer and mass production for customers, chip design and verification, and assisting in packaging design, charging NRE for commissioned design and ongoing revenue for subsequent mass production; the Chiplet business model includes charging licensing fees and royalties, i.e., authorizing the designed Chiplet solution to customers for self-production; and delivering IO Die products to customers, providing complete small chip products, with sales conducted on a per-chip basis.The announcement shows that Kuixin Technology’s operating revenue for 2023, 2024, and the first half of 2025 is expected to be 146 million yuan, 193 million yuan, and 110 million yuan, with net profits of -74.8668 million yuan, 530,500 yuan, and -9.7521 million yuan, and gross margins of 20.19%, 34.38%, and 43.50%, respectively.Additionally, in this acquisition, Kuixin Technology has also made performance commitments to Heshun Petroleum, agreeing that from 2025 to 2028, Kuixin Technology’s operating revenue will not be less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan, with IP and high-speed interconnect product revenues not less than 105 million yuan, 157.5 million yuan, 210 million yuan, and 262.5 million yuan, and the net profit attributable to the parent company for each year of the performance commitment period will be positive.With huge industry potential, Kuixin Technology, which is about to see its performance explode, has also received backing from several well-known investment institutions after completing two rounds of financing exceeding 100 million yuan. It is reported that in Kuixin Technology’s equity structure, in addition to the founder Chen Wanyi holding 81.4216% of the shares, there are also institutions such as Datai Capital, Haisong Capital, Yimei Investment, and Guoxin Technology.In 2023, Datai Capital’s founding managing partner Ye Weigang publicly stated that Kuixin Technology is developing rapidly and plans to apply for listing on the Sci-Tech Innovation Board around 2025.
A-share Mergers and Acquisitions Wave in the Chip Sector
It is not just Heshun Petroleum that is expressing interest in semiconductor companies.In the A-share market, there are many cases of companies preparing to cross into the semiconductor sector seeking new paths. There are also semiconductor startups that have chosen to “sell themselves” instead of pursuing IPO plans, and many are planning “backdoor listings.” According to relevant data, there have been nearly 90 merger and acquisition events in the semiconductor industry in the first three quarters of this year, with an average of one merger plan announced every three days.
Source: CHIPIPOIn recent months, many A-share listed companies have been preparing to cross into the semiconductor field. In September 2025, Sunflower plans to enter the high-end semiconductor materials sector from cardiovascular medicine, intending to issue shares and pay cash to acquire 100% of Xipu Materials and 40% of Beide Pharmaceuticals; in August 2025, Yongji Co. plans to shift its main business from cigarette label printing to data storage main control chips, intending to acquire control of Nanjing Tena Fei Electronics Technology Co., Ltd. through issuing shares and paying cash.In June of this year, electric vehicle company Greenway Technology plans to enter the semiconductor industry by acquiring semiconductor equipment manufacturer Damo Semiconductor. Notably, as an acquisition target, Damo Semiconductor has attempted to “sell itself” twice, and in late April this year, Tianli Lithium Energy announced the termination of its acquisition of Damo Semiconductor’s control. Now, Greenway Technology is planning to use 530 million yuan of oversubscribed funds from its IPO to acquire 51% of Damo Semiconductor’s shares.However, mergers and acquisitions are a game of interests between both parties, and the final outcome may not be as desired. Recently, home furnishing manufacturer Meng Tian Home announced the termination of its plan to acquire control of a well-known supplier in the high-end analog chip field, Shanghai Chuantou Micro. In July of this year, the highly anticipated merger of EDA leader Huada Jiutian with domestic EDA newcomer Xinheng and semiconductor case ultimately terminated due to the parties failing to reach an agreement on core terms.Under industry trends, semiconductor companies choosing to enter listed company platforms through “being acquired” facilitate resource allocation and business synergy between enterprises to a certain extent, but for both parties involved in the merger, it is both an opportunity and a test, accompanied by many uncertainties.(Cover image source: Tuchong) – END –
You“Are you watching”me?