Analysis of the Strategic Intent Behind Tuojing Technology's Acquisition of a 16% Stake in Xinfeng Precision

According to the announcement, Tuojing Technology (688072) released an announcement on the evening of December 5, 2025, planning to jointly invest in Ningbo Xinfeng Precision Technology Co., Ltd. with its related party Fengquan Venture Capital [1][2]. Among them, Tuojing Technology intends to acquire RMB 9.9838 million of registered capital in Xinfeng Precision for no more than RMB 270 million, accounting for 16.42% of the registered capital after this round of financing; Fengquan Venture Capital will acquire RMB 1.1093 million of registered capital for RMB 30 million, accounting for 1.82% [1][2]. This transaction constitutes a related-party transaction because Lü Guangquan (Chairman of Tuojing Technology), Liu Jing (Director), and other senior executives of the company serve as limited partners in Fengquan Venture Capital [1].

Xinfeng Precision is a semiconductor equipment enterprise focusing on the R&D and production of

, whose products are mainly applied in process links such as [1][2]. The company has independent R&D and manufacturing capabilities for core software and core components, and is an important supplier in the domestic semiconductor equipment field.

From the perspective of financial data, Xinfeng Precision is in the early stage of development: as of the end of the first half of 2025, the company’s total assets were RMB 388 million, but the net asset was a deficit of RMB 8.286 million; in 2024, it achieved revenue of RMB 56.3508 million and a net loss of RMB 30.8849 million; in the first half of 2025, revenue was RMB 15.8657 million and net loss was RMB 7.1851 million [1]. The pre-investment valuation for this investment (for the capital increase part) is RMB 1.8 billion, while the pre-investment valuation for the equity transfer part is RMB 1.566 billion because it does not enjoy special shareholder rights [1].

Tuojing Technology focuses on the R&D and industrial application of

and [1][2]. The company has successfully developed and launched advanced bonding equipment and supporting measurement and testing equipment, which have been mass-produced and applied in fields such as advanced storage and image sensors. In the 3D integration process application chain, [1][2]. Through this investment, Tuojing Technology can further improve its layout in the 3D integration process chain and achieve technical and market synergy between equipment.

Tuojing Technology stated that this investment aims to “further enhance industrial layout and industrial synergy” [1]. Xinfeng Precision’s thinning and ring cutting equipment form an

with Tuojing Technology’s bonding equipment in the advanced packaging and 3D integration fields, which helps Tuojing Technology build a more complete solution capability and enhance its competitiveness in the high-end semiconductor equipment market.

According to industry data, the global 3D integration manufacturing market size is expected to grow from USD 22.49 billion in 2023 to USD 98.79 billion in 2028, with a compound annual growth rate (CAGR) of 34% [3]. This rapidly growing market provides huge development space for domestic semiconductor equipment enterprises. Through strategic investment in Xinfeng Precision, Tuojing Technology can better seize this market opportunity and share the industry growth dividends.

Against the background of domestic substitution in the current semiconductor industry, Tuojing Technology’s investment in Xinfeng Precision, which has independent R&D capabilities for core components, helps

, reduce dependence on overseas suppliers, and improve overall competitiveness.

Although this investment is a financial investment, the 16.42% shareholding ratio makes Tuojing Technology an important shareholder of Xinfeng Precision, laying the foundation for

in the future. With the development of Xinfeng Precision’s business and the improvement of its technical capabilities, this investment is expected to generate good strategic returns.

The valuation of this investment reflects the market’s recognition of Xinfeng Precision’s technical value and development potential. Although the company is currently in a state of loss, considering the high growth of the 3D integration and advanced packaging equipment track it is in, as well as its core technical capabilities, the pre-investment valuation of RMB 1.8 billion has certain rationality. Tuojing Technology’s acquisition of equity at a lower valuation (RMB 1.566 billion) also reflects its grasp of the current investment timing.

The strategic intent of Tuojing Technology’s acquisition of a 16% stake in Xinfeng Precision is

, achieve synergy effects with Xinfeng Precision in technology, market, supply chain, etc., improve the industrial ecology of semiconductor equipment, and seize the rapid growth opportunity of the advanced packaging and 3D integration market. This investment not only reflects Tuojing Technology’s profound insight into industry trends but also demonstrates the company’s strategic determination to accelerate development through extensional expansion.

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[1] Phoenix News - Tuojing Technology plans to jointly invest in Xinfeng Precision with related parties to increase semiconductor industry layout (https://i.ifeng.com/c/8oqXIM2jehB)

[2] Sina Finance - Tuojing Technology plans to jointly invest in Xinfeng Precision with related parties (https://finance.sina.com.cn/roll/2025-12-08/doc-inhaarpa3600956.shtml)

[3] Eastmoney.com - Global 3D integration manufacturing market growth forecast data (https://gbres.dfcfw.com/Files/iimage/20251229/B2EF833EB5165D2D8B5075911D1331F8_w639h369.png)