JGBR shares terminated the controlling acquisition plan of a qingdao steel ball company

On July 16, 2025, A-share listed company Jiangsu Lixing General Steel Ball Co., Ltd. (JGBR) (stock code: 300421.SZ) issued an announcement announcing the termination of the acquisition of the controlling stake in Qingdao Feiyan Lingang Precision Steel Ball Manufacturing Co., Ltd. The company stated that since the two parties failed to reach an agreement on key terms, it decided to suspend the transaction in order to safeguard the overall interests of the company and shareholders.

The acquisition was originally seen as an important step for JGBR Co., Ltd. to expand its product structure and enhance market synergy. The company first disclosed its acquisition intention on March 31 this year, hoping to strengthen its technical advantages and market share in the field of micro high-precision steel balls by integrating Feiyan steel ball resources. As a leading company in the domestic bearing steel ball industry, JGBR Co., Ltd. has long topped the industry sales revenue list and successfully entered the supply chain system of international mainstream bearing manufacturers.

Feiyan Steel Ball was established in the early 2000s and focuses on the manufacture of steel balls with a diameter range of 0.5 to 12.7 mm, which are widely used in automobiles, aerospace, and high-end mechanical equipment. It has the leading level in the domestic micro cold heading ball blank process, especially in the field of commercial vehicle and heavy truck steering system, and its customers include many internationally renowned brands.

Although the acquisition failed to land, there was a wave of intensive management reduction in the company during the transaction process. According to public information, a total of 6 directors and senior managers successively announced plans to reduce their holdings in the months from the announcement of the acquisition to the termination. The relevant persons all stated that the reason for the reduction was "personal capital needs" and fulfilled the information disclosure obligations in accordance with regulatory requirements.

Among them, on May 23, the company's three senior executives planned to reduce their holdings by no more than 1.9 million shares in total; then on June 17, another three senior executives also announced a reduction arrangement of no more than 2.18 million shares in total. Although the reduction itself does not directly reflect the company's fundamental changes, it occurred in a concentrated manner before and after the termination of the merger and acquisition, which still attracted the attention of investors.

At present, JGBR shares stated that it will continue to focus on the development of its main business, enhance its core competitiveness, and explore other possible strategic cooperation opportunities. The company will continue to optimize its product structure and help the process of replacing imported high-end parts with domestic ones.