During the planning of the acquisition, the company's stock price surged beforehand. Weike Technology announced that "no information leakage has been found."

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Reporter: Zhao Linan | Editor: Yang Jun

On March 26, Weike Technology (SZ301196, share price 114.25 yuan, market value 14.317 billion yuan) released two important announcements.

On one hand, Weike Technology explained the abnormal fluctuations in its stock price, which had deviated by over 30% in cumulative closing price over three consecutive trading days; on the other hand, the company disclosed a merger and acquisition plan: it intends to acquire 70% of the equity of Fuzhou Xicheng Technology Co., Ltd. (hereinafter referred to as Xicheng Technology) through capital increase and purchase.

“Daily Economic News” reporters noted that the stock price of Weike Technology had risen prior to the announcement of the acquisition. Weike Technology stated that, upon verification, no information leaks regarding the planning of this matter were found.

Intending to acquire 70% of Xicheng Technology’s equity

Weike Technology stated that in order to strengthen the company’s product technology capabilities and enhance sustained profitability, the company reached a preliminary intention with relevant personnel to acquire 70% of the equity of Xicheng Technology through capital increase and purchase.

According to the announcement from Weike Technology, Xicheng Technology was established in October 2006, with a registered capital of 36.2 million yuan, and its registered location is No. 19, Building C, Fuzhou Software Park, 89 Tongpan Road, Gulou District, Fuzhou City. The company’s core business is the research and production of automotive electronic and electrical components.

In terms of equity structure, Fujian Xicheng Enterprise Management Co., Ltd. (hereinafter referred to as Xicheng Management) is the controlling shareholder of Xicheng Technology, holding a 72.56% stake. Additionally, individual Chen Jianming holds 11.60%, and Fuzhou Zhicheng Venture Capital Partnership (Limited Partnership) holds 7.39%. The main counterparties in this transaction for Weike Technology include Xicheng Management, Chen Jianming, and Hou Weihe. The legal representative of Xicheng Management is Chen Jianming, who holds 89% of the shares in Xicheng Management.

Weike Technology emphasized that the counterparties have no relationship with the company and the company’s top ten shareholders, directors, and senior executives in terms of property rights, business, assets, debts, personnel, or any other relationships that may or have already caused a tilt in the interests of the listed company, and that the counterparties are not dishonest executors. This transaction is expected to not constitute a related party transaction and does not constitute a major asset reorganization as defined by the “Administrative Measures for Major Asset Reorganization of Listed Companies.”

Weike Technology stated that Xicheng Technology’s main business involves automotive electronic and electrical components, with its customer fields primarily in the automotive sector. The company has been deeply involved in the molding product field for many years and possesses certain advantages in product technology, customer resources, and production management capabilities.

“This acquisition aims to integrate and leverage each other’s resource advantages, further expand the company’s product technology capabilities and customer resources, help the company obtain new profit growth points, align with the company’s strategic development planning and industry chain extension requirements, and enhance the company’s profitability and market competitiveness, thus having a positive significance and impetus for the company’s future development. Upon completion of this acquisition, the company will obtain control over Xicheng Technology, and Xicheng Technology and its wholly-owned subsidiaries will be included in the company’s consolidated financial statements,” Weike Technology stated.

In addition, Weike Technology mentioned that the proposed equity acquisition is still in the planning stage, and further due diligence and audit assessments on the target acquisition company are required, with the transaction plan needing further validation and negotiation. The transaction remains uncertain.

The “fiber optic” sector shows active performance in the secondary market

Before these matters came to light, Weike Technology’s stock price had already been on a continuous rise in the secondary market.

From March 24 to March 26, 2026, the cumulative closing price deviation of Weike Technology over three consecutive trading days exceeded 30%, which, according to relevant regulations of the "Shenzhen Stock Exchange Trading Rules," constitutes an abnormal fluctuation in stock trading.

Regarding the stock price fluctuations, Weike Technology stated that its board of directors conducted investigations and verified with the controlling shareholder and actual controller through phone and written forms.

Weike Technology pointed out that the capital market has recently given high attention to concepts like "fiber optics," and the related sectors have shown active performance in the secondary market. "As of now, the products in the field of optical communications mainly include MPO fiber optic connector components and adapters, plastic housings for communication base stations, housings for home fiber optic equipment, optical cable communication housings, fiber optic access boxes, and access terminals, but the revenue share of the data center MPO project is quite small (achieving a non-tax revenue of 9.97 million yuan from January 2025 to February 2026, unaudited). We encourage investors to make rational decisions and invest cautiously," Weike Technology stated.

Regarding whether the planning of the acquisition was leaked, Weike Technology provided a clear response. "After verification by the company, no information leaks, media reports, or market rumors regarding this matter were found," Weike Technology stated.

The company declared that aside from the disclosed announcements and major matters still in the planning stage, no recent public media reports have been found that could or have already significantly impacted the company's stock trading price due to undisclosed significant information.

Moreover, Weike Technology stated that during the period of abnormal fluctuations in the company's stock trading, the controlling shareholder and actual controller did not buy or sell the company's stocks.

Cover image source: Daily Economic Media Library

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