Overseas M&A! An A-share company bought an enterprise with a net asset of 18 million yuan for only 8 yuan!

For only 8 yuan, an A-share listed company has acquired overseas assets with a net worth of approximately 18 million yuan.

According to a disclosure by Daye Co., Ltd. (300879) on the evening of March 23, the company’s board of directors approved a proposal to allow its wholly-owned subsidiary AL-KO Geräte GmbH to acquire 100% equity of ARE Kleinkotz Verwaltungs GmbH (hereinafter referred to as “ARE Company”) for 1 euro, equivalent to about 8 yuan. As of the end of last year, the net assets of ARE Company were 2.2695 million euros, approximately 18 million yuan.

The announcement stated that ARE Company was established in June 2017 with a registered capital of 25,000 euros and is a German enterprise. ARE Company owns a wholly-owned subsidiary, AL-KO KOBER LLC, which engages in the sales and after-sales service of garden machinery products.

In terms of finance, for the fiscal year 2025, ARE Company achieved an operating income of 7.9694 million euros and a loss of 298,900 euros. As of the end of last year, the total assets of the company were 6.2188 million euros.

Regarding this transaction, Daye Co., Ltd. stated in the announcement that ARE Company has been significantly affected by fluctuations in the garden machinery market in recent years, leading to considerable performance volatility. Its controlling shareholder (AL-KO GmbH) has sold its research, production, and other sales businesses to the company in 2025. The main business of ARE Company, which involves sales and after-sales services of garden machinery products in Eastern Europe, cannot constitute an independent production, supply, and sales operation system, and it has been in a loss state for the past year. AL-KO GmbH determined the transaction price through friendly negotiations to complete its business strategic transformation and divest from loss-making businesses.

Daye Co., Ltd. is mainly engaged in the research, production, and sales of garden machinery products, which can be classified by usage into lawn mowers, brush cutters/trimmers, other power machinery, and accessories. The company’s semi-annual report for 2025 revealed its firm international development strategy and proactive global layout of production bases. Currently, there are five production bases, including its headquarters and Hangzhou Bay base in China, as well as production bases in Mexico and an assembly plant in the United States (overseas warehouse). The company also completed the acquisition of AL-KO Company on February 12 last year, adding a production base in Austria. The counterparty for this transaction was AL-KO GmbH.

On March 24, a reporter from Securities Times·e Company called the investor relations department of Daye Co., Ltd. The company representative stated that ARE Company was originally part of the AL-KO system. The listed company initially planned to acquire it together but could not reach an agreement. Later, when the listed company discussed acquiring this asset (ARE Company), the other party didn’t want to continue the garden machinery business, and also, based on the smooth nature of previous transactions, they had a high level of trust in the listed company, thus they reached a deal for 1 euro, stating, “The net assets of the target are indeed viable, with corresponding factories, storage, and office buildings.”

The listed company stated that acquiring ARE Company is aimed at further expanding its market channels in Europe and continuously optimizing resource allocation and market.

Further analysis shows that since the beginning of this year, there has been a wave of A-share mergers and acquisitions of overseas assets, primarily in the fields of mineral resources and semiconductors:

In January, companies such as Zhejiang Mining, Rilian Technology, Shenghong Technology, Zijin Mining, and China Aluminum successively disclosed acquisition plans, intending to merge various assets such as lead-silver mines, production bases, and gold mines.

In early February, Daon Co., Ltd., Jin Chengxin, and Yutong Technology announced their intentions to acquire equity in overseas companies.

In mid-March, Beijing Keri announced plans to acquire 100% equity of Greenet Plant S.R.L. to expand its overseas businesses in the new energy and energy storage sectors. Kute Intelligent disclosed that its subsidiary Aijia International is planning to acquire leading enterprises in the Dongdaemun clothing market in Seoul, South Korea.

During this period, Luoyang Molybdenum completed the delivery of its acquisition of overseas gold mine rights. Youyan Silicon completed the acquisition of 70% equity of DG Technologies Co., Ltd. Shengtun Mining acquired 100% equity of Canadian Loncor Company, and Dongfang Yuhong acquired 60% equity of Brazilian Novakem Company, all of which were completed in mid-February.

Juhua Materials is currently advancing the acquisition of SKE blank mask-related business sectors.

Some analysts believe that overall, overseas mergers and acquisitions by A-share listed companies are no longer merely about scale expansion, but revolve around the main lines of brand technology internationalization, geopolitical risk avoidance, and resource reserve strengthening. This greatly enhances the international competitiveness of Chinese enterprises. At the same time, with the current tightening of global financial conditions and high uncertainty in economic policy, trade policy, and geopolitical issues, A-share listed companies need to have a strong awareness of risks.