Jiangnan Yifan Transmission's Acquisition of 87.07% Stake in Beijing Hollysys Motor Technology Co., Ltd.: In-Depth Analysis of Strategic Synergies and Valuation Impacts

According to announcements dated January 20, 2026 [1][2][3], Jiangnan Yifan Transmission (Stock Code: 301023.SZ) plans to acquire an 87.07% stake in Beijing Hollysys Motor Technology Co., Ltd. via cash payment, and this transaction is expected to constitute a major asset restructuring. Upon completion of the transaction, the target company will become a holding subsidiary of the Company and be included in the consolidated financial statements. The Company’s current total market capitalization is approximately RMB 3.643 billion, with the latest share price at RMB 46.6 per share [1].

: Beijing Hollysys System Engineering Co., Ltd., Tian Yanxia, Liu Jufen, Qi Wenxing, Wu Si, Beijing Dongsheng Bozhan Investment Management Co., Ltd., Yao Hong, Wang Lu, Zhao Yan, Liu Zhixing, Wu Jiang, Qian Cheng, Zhang Hao, and other shareholders [2].

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The main business segments of Beijing Hollysys Motor Technology Co., Ltd. include [1][2]:

• Motion control motors and drives
• Industry-specific control systems
• Mechanical transmission units
• CNC and motion control systems
• System integration and services

: Focuses on system integration and control solutions, forming a strong complement to Jiangnan Yifan Transmission’s geared motor business.

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Dimension	Jiangnan Yifan Transmission	Beijing Hollysys Motors	Synergy Value
Product Positioning	Micro and special geared motors (components)	Motion control + drive systems (systems)	Forms a complete “Motor + Drive + Control” solution
Technology Focus	Motor design and manufacturing	Control algorithms and system integration	Deep integration of motor design and control algorithms
Application Scenarios	HV switches for power transmission and distribution, RV parts	Automation equipment, robots, intelligent manufacturing	Upgrades from a single component supplier to a system integration supplier

As of the end of 2024, Jiangnan Yifan Transmission has owned 56 patents (including 10 invention patents) [4], with core technologies including segmented stator structure design technology, rotor structure design technology, permanent magnet synchronous motor rotor assembly technology, etc. Beijing Hollysys Motors has profound accumulations in motion control algorithms, CNC system development, and industry-specific control systems. The combination of the two will significantly enhance competitiveness in high-end application scenarios such as

.

Jiangnan Yifan Transmission’s existing customers include international renowned enterprises such as Noke Industry, Siemens, Eaton, and Schneider Electric, as well as domestic leading enterprises such as XD Electric, Xuji Electric, and Taikai Group [4]. Through this acquisition, Jiangnan Yifan Transmission can leverage Beijing Hollysys Motors’ technical capabilities to enter the industrial automation and robot markets, while helping Beijing Hollysys Motors expand customers in the power transmission and distribution and RV sectors.

Through joint procurement of raw materials such as enameled wire, magnetic materials, and copper, it is expected to reduce procurement costs by 3%-5%, while optimizing the allocation of production, manufacturing, logistics, and warehousing resources.

Jiangnan Yifan Transmission’s original market mainly relies on power grid investment (the State Grid plans to invest USD 350 billion during the “14th Five-Year Plan” period) and the US RV market. Upon completion of the acquisition, the Company will enter the

, effectively reducing the risk of single-industry dependence (current customer concentration reaches 61.89%).

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Based on public data [4][5]:

• 2024 Operating Revenue: RMB 420 million
• 2024 Net Profit Attributable to Parent: RMB 56 million
• Current Market Capitalization: RMB 3.643 billion
• Price-to-Earnings Ratio (PE): Approximately 65x
• Price-to-Sales Ratio (PS): Approximately 8.67x

Based on major asset restructuring standards and industry comparable valuation levels:

Scenario	Estimated Revenue of Target Company	Estimated Net Profit of Target Company	Transaction Consideration Range (87.07% Stake)
Conservative	RMB 150 million	RMB 15 million	RMB 400-600 million
Neutral	RMB 200 million	RMB 25 million	RMB 600-900 million
Optimistic	RMB 300 million	RMB 35 million	RMB 900 million - 1.2 billion

Reference to industry comparable company valuations: The average PE of the motor industry is 25-35x, and the average PE of the automation control industry is 35-50x [6].

:

• Pro Forma Revenue: 420 + 200 = RMB 620 million (+47.6%)
• Pro Forma Net Profit: 56 + 25 = RMB 81 million (+44.6%)
• Pro Forma EPS Increase: +30% to +40%
• Pro Forma PE: If the share price remains unchanged, it will drop to approximately 45x

:

• Pro Forma Revenue: 420 + 250 = RMB 670 million (+59.5%)
• Pro Forma Net Profit: 56 + 30 = RMB 86 million (+53.6%)
• Pro Forma EPS Increase: +40% to +50%
• Pro Forma PE: If the share price remains unchanged, it will drop to approximately 42x

• Revenue Synergy: Expected to increase annual revenue by 10%-20%
• Cost Synergy: Expected to reduce procurement costs by 3%-5%
• Gross Margin Improvement: Expected to increase by 2-3 percentage points
• Comprehensive Valuation Upside: 15%-25%

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Risk Type	Details	Impact Level
Integration Risk	Differences in business models, corporate culture integration, management stability	Medium-High
Goodwill Impairment Risk	If significant goodwill is formed, underperformance may lead to impairment	Medium
Cash Payment Pressure	All-cash acquisition puts pressure on the Company’s cash flow	Medium
Industry Cycle Risk	The industrial automation industry has cyclical fluctuations	Low
Transaction Uncertainty	Specific terms require further negotiation and verification	Low

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Jiangnan Yifan Transmission’s acquisition of an 87.07% stake in Beijing Hollysys Motors is a

merger and acquisition:

1. Outstanding Strategic Value
   : Breaks single-industry dependence and enters high-growth tracks such as industrial automation and robotics
2. Strong Product Line Complementarity
   : Forms a complete “Motor + Drive + Control” solution, upgrading from a component supplier to a system integrator
3. Positive Financial Impact
   : Expected to bring a 40%-60% increase in revenue and a 40%-50% increase in net profit
4. Valuation Expected to Be Restructured
   : The current 65x PE is expected to drop to 42-45x, making the valuation more attractive

• Short-term
  : The transaction announcement will have a positive stimulating effect on the share price (expectation of major asset restructuring)
• Mid-term
  : Focus on the integration progress and performance fulfillment
• Long-term
  : Successful strategic transformation will open up the Company’s growth space

1. Transaction consideration and payment arrangements
2. Performance commitments and bet-on clauses
3. Detailed financial data of the target company
4. Integration plan and management team arrangements
5. Whether there are plans for subsequent acquisition of remaining shares

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[1] Securities Times - “301023, Major Asset Restructuring! No Suspension!” (https://www.stcn.com/article/detail/3602857.html)

[2] Sina Finance - “Jiangnan Yifan Transmission Plans to Acquire 87.07% Stake in Beijing Hollysys Motors” (https://finance.sina.com.cn/jjxw/2026-01-20/doc-inhhyfuv7386021.shtml)

[3] CLS - “Jiangnan Yifan Transmission: Plans to Acquire 87.07% Stake in Beijing Hollysys Motors” (https://www.cls.cn/detail/2264128)

[4] 2024 Semi-Annual Report of Wuxi Jiangnan Yifan Electric Power Transmission Technology Co., Ltd. (https://stockn.xueqiu.com/SZ301023/20240822341927.pdf)

[5] Jin10 Data - “Successfully Achieved 15 Consecutive Daily Limits! High-R Popular Stock Warns of Trading Risks” (https://xnews.jin10.com/details/207588)

[6] Eastmoney - “Stock Data of Jiangnan Yifan Transmission (301023)” (http://quote.eastmoney.com/unify/r/0.301023)