Electronics Sector Becomes a "Drag"! Jingwei Hui Urgently Offloads Core Assets, Buyer is a Newly Established Company with Only Days of Operation

Everyday Economic News Reporter | Peng Fei Everyday Economic News Editor | Wei Guanhong

Facing operational pressures, Weijing Huikai (SZ300120, stock price 8.43 yuan, market value 4.842 billion yuan) finally couldn’t hold back and has begun “amputating to survive.”

On the evening of March 13, Weijing Huikai announced plans for a major asset restructuring, intending to spin off its core assets in the electronic information sector through a cash transaction.

The Daily Economic News reporter noted that the acquirer, Shenzhen Fuje Technology Co., Ltd. (hereinafter “Fuje Technology”), is a relatively new company established just a few days ago.

With the continuous decline in profitability of its main business, can Weijing Huikai truly reinvent itself?

Weijing Huikai has officially put the spin-off of its electronic information sector assets on the agenda.

According to the “Notice on Planning Major Asset Restructuring” released on the evening of March 13, Weijing Huikai plans to transfer its electronic information sector assets—including Xinhuikai Technology (Shenzhen) Co., Ltd. and its consolidated subsidiaries, Hunan Weijing Huikai Technology Co., Ltd., Zhuzhou Xinhuikai Technology Co., Ltd., and Weijing Huikai Technology (Shenzhen) Co., Ltd.—to Fuje Technology.

This transaction will be conducted entirely in cash and does not involve issuing shares. Based on preliminary research and estimates, this transaction is expected to constitute a major asset restructuring as defined by the “Administrative Measures for Major Asset Restructuring of Listed Companies,” and will not result in changes to the company’s controlling shareholder or actual controller.

The announcement states that Weijing Huikai has signed a framework agreement for equity transfer with the counterparty, Fuje Technology plans to acquire the target assets through a cash payment.

The Daily Economic News reporter noted that the background of Fuje Technology, the acquirer, is noteworthy. The company was established on March 6, 2026, as a limited liability company (foreign-invested, non-wholly owned). Just seven days after Weijing Huikai’s restructuring announcement on March 13, 2026, this company was founded.

Data shows that Fuje Technology has a registered capital of 10 million yuan. Among its shareholders, OLYNIEC Jeffrey William holds 80% of the shares, and Yu Qiaohua holds 20%.

To advance this “streamlining” plan, the agreement stipulates that, after the agreement takes effect, the listed company must complete two tasks by March 31, 2026: first, to divest non-electronic information assets and any equity investments outside the scope of Weijing Huikai’s consolidated business; second, to transfer all the target assets into the name of Weijing Huikai Technology (Shenzhen) Co., Ltd.

It is worth noting that before this transaction, Weijing Huikai’s main business involved the research, development, production, and sales of LCD and touch display modules, electromagnetic wires, and information technology solutions. Through this transaction, the company will spin off its electronic information sector and focus on developing its power and information technology solutions businesses.

Why did its once core business become an asset to be spun off? Looking at Weijing Huikai’s financial data, the answer is clear.

The 2025 performance forecast shows that the company’s net profit attributable to the parent in 2025 is expected to be a loss of 350 million to 450 million yuan, compared to a profit of 21.45 million yuan in the same period last year.

Regarding the performance decline, the company cited two main reasons: first, impairment of goodwill related to its acquisition subsidiary Shenzhen Xinhuikai; second, the touch display panel segment’s performance declined year-over-year due to international environment factors and increased industry competition.

Meanwhile, Weijing Huikai will conduct goodwill impairment testing in its 2025 annual report, with the final impairment amount to be determined after evaluation and audit by qualified securities and futures practitioners and auditing firms.

It is noteworthy that Weijing Huikai’s declining performance was already evident in its Q3 2025 report. The company’s revenue for the first three quarters of 2025 was 1.915 billion yuan, down 26.90% year-over-year; net profit attributable to the parent was -9.267 million yuan, a decrease of 114.11%. Specifically, in the third quarter, net profit attributable to the parent was -23.345 million yuan, a sharp decline of 233.36% year-over-year.

In its Q3 2025 report, Weijing Huikai stated that the main reasons for the profit decline in the first three quarters included impacts from the international market environment, tariff policies, and increased production costs at new manufacturing bases, which led to a decrease in gross profit margin for the touch display segment. Additionally, interest income decreased compared to the same period last year. The report also noted increased losses from fixed asset disposals and credit impairment provisions, whereas last year, the company realized about 16 million yuan from land sales.

To ease operational and financial pressures, Weijing Huikai has repeatedly taken actions to raise funds. By the end of Q3 2025, the company’s net cash flow from investing activities increased by 248.22% year-over-year, mainly due to the sale of its wholly-owned subsidiary Changsha Yushun and the collection of over 100 million yuan in equity purchase proceeds. Additionally, the company approved the termination of the “RF Module Chip R&D and Industrialization Project” and the permanent replenishment of remaining funds into working capital.

On the evening of March 13, Weijing Huikai stated that the spin-off of its electronic information business will help accelerate the company’s transformation toward developing new quality productivity businesses. After the transaction, the company expects to recover significant funds, which will support continued investment in new productivity sectors, focus on advantageous resources, and intensify efforts in cutting-edge technology fields to accelerate industrial transformation and upgrading.

Cover image source: Everyday Media Asset Library