Fenlong Share Control Change Completed, Ubtech Formally Takes Over

(Reporter Feng Sijie) The change of control at Fenglong Co., Ltd. has reached a key milestone. On the evening of March 12, Zhejiang Fenglong Electric Co., Ltd. (hereinafter referred to as “Fenglong Co.”) announced that the transfer registration of shares held by the company’s controlling shareholder has been completed, with 65,529,900 shares transferred, accounting for 29.99% of the company’s total share capital. After this transfer, the company’s controlling shareholder changed from Chengfeng Investment to Shenzhen Youbixuan Technology Co., Ltd. (hereinafter referred to as “Youbixuan”), and the actual controller changed from Dong Jiangang to Zhou Jian.

According to the previously disclosed transaction plan, this agreement transfer is only a key step in the overall control change scheme. Under the plan, after the share transfer is completed, Youbixuan and/or its designated entities will also make partial tender offers to all shareholders except the transferee, proposing to acquire 28.45 million shares, representing 13.02% of Fenglong Co.'s total share capital, at a offer price of 17.72 yuan per share. Meanwhile, the original shareholders have also made arrangements regarding pre-acceptance of some shares and the waiver of voting rights.

Looking at the background of the new controlling shareholder, Youbixuan’s main business covers intelligent robots, artificial intelligence algorithms, software, communication equipment, and related fields, involving robotics and AI education, medical device technology development, as well as smart home and electronic products.

Youbixuan’s entry gives Fenglong Co. greater potential in the tech sector, but the company’s operational foundation remains based on its original manufacturing core business. The announcement clearly states that within 36 months after the completion of this acquisition, Youbixuan has no plans to inject its assets into the listed company. Currently, Fenglong Co. does not engage in humanoid robot business; its main business remains the research, production, and sales of garden machinery parts, auto parts, and hydraulic components. The company will continue to focus on its core business in the future. Additionally, the company operates independently from Youbixuan and its affiliates in terms of production, management, and core technology development, and there are no other related-party transactions that need to be disclosed at this time.

Furthermore, Youbixuan commits that from the date of share transfer registration to its name, within 36 months, it will not transfer or reduce its holdings of the company’s shares obtained in this acquisition by any means (including but not limited to centralized bidding, block trades, agreement transfers, etc.), nor will it reduce its holdings through share buybacks or capital reductions; it will not pledge the shares obtained in this transaction within 36 months; and it will maintain its controlling shareholder status within 60 months, in compliance with laws and regulations.

Industry experts believe that the implementation of control change usually signifies a clearer corporate ownership and governance structure, laying a more definite foundation for subsequent strategic development and resource integration. For Fenglong Co., with the completion of this share transfer, the control change marks a crucial step forward. The orderly advancement of subsequent tender offers is expected to further strengthen the stability of the company’s control and provide clearer governance support for future steady growth. Meanwhile, progress in optimizing governance structures and clarifying strategic directions will continue to be a focus of market attention.