GEB shares plan to acquire a controlling stake in Uni Precision. Half-year net profit increased 33%, and R&D expense ratio reached 7.88%.

On the evening of September 21st, GEB announced its intention to acquire a controlling stake in Guangzhou Uni Precision Co., Ltd. (hereinafter referred to as "Uni Precision"). If the acquisition is completed, Uni Precision will become a subsidiary of the company.

GEB stated that if the transaction is completed, it will rapidly expand its customer base and market share for its precision stamping business, thereby increasing its market share.

GEB's main products are bearing retainers and accessories, and precision parts. The company focuses on its core business, continuously expands diversified application scenarios, strengthens technological innovation, and actively promotes global capacity development to help the company achieve high-quality development.

In the first half of 2025, GEB achieved steady performance growth, achieving a net profit attributable to shareholders of the listed company (hereinafter referred to as "net profit attributable to the parent company") of RMB 75.9326 million, a year-on-year increase of 32.86%. The R&D expense ratio reached 7.88%.

Proposed Asset Acquisition to Increase Market Share

On the evening of September 21st, GEB announced that it had signed a framework agreement on equity acquisition with Uni Precision and its shareholder Uni Stamping (China) Investment Co., Ltd. on September 19th. If the acquisition is completed, the company will hold a controlling stake in Uni Precision, which will become a subsidiary of the company.

According to information, Uni Precision was registered in November 2009 with registered capital of US$35 million and is 100% owned by Uni Stamping (China) Investment Co., Ltd. Uni Precision's business scope includes the manufacturing of gears, gear reducers, and transmissions; and the manufacturing of automotive parts and accessories (excluding automotive engines).

According to inquiries, as of the date of this announcement, the target company's credit standing is good and it has not been listed as a dishonest debtor. The target company's key financial indicators will be disclosed after the audit and appraisal report is issued.

According to the framework agreement, the acquisition price will be determined by negotiation among all parties based on the audit and appraisal of Uni Precision by an intermediary agency hired by GEB This transaction does not constitute a related-party transaction or a major asset reorganization.

GEB stated that the acquisition of Uni Precision will create significant strategic synergy with the company. Uni Precision specializes in stamping products and has accumulated extensive expertise in stamping processes, mature management experience, and a high-quality customer base over the years. These capabilities will be deeply integrated with the company's own precision machining, manufacturing, and refined management capabilities, significantly enhancing its core competitiveness.

If this transaction is completed, Uni Precision will be able to rapidly expand its customer base and market share for precision stamping, thereby increasing its market share. Furthermore, by leveraging Uni Precision's geographical advantages, subsequent resource integration and empowerment will enhance Uni Precision's asset operation efficiency and market responsiveness, thereby better serving customers in South China and strengthening its regional market competitiveness.

It is worth noting that since 2025, GEB has continued to strengthen its core business and invest overseas.

In March, GEB announced that it would invest 150 million yuan through its Hong Kong subsidiary to build a production base in Serbia. The base will primarily produce high-end bearing retainers. Production is expected to begin in the first quarter of 2026, with an annual production capacity of 5 million sets, directly serving the European market.

In July, GEB announced plans to invest no less than 1.5 billion yuan in Chongqing to build an intelligent manufacturing project for key components of high-end equipment, aiming to expand the market for new energy electric drive stators and rotors in the southwest region.

In August, GEB announced that to meet market demand and enhance production capacity and competitiveness, its subsidiary, Boyuan Precision, plans to use 530 million yuan of its own or self-raised funds to build a precision manufacturing project for core components of new energy equipment; and its subsidiary, Weishui Lantian, plans to use 300 million yuan of its own or self-raised funds to build a precision manufacturing project for key components of high-end new energy equipment.

Non-GAAP net profit exceeded 71.88 million yuan, an increase of 45.57%.

GEB's main products are bearing retainers and accessories, and precision parts. The company will be listed on the Shanghai Stock Exchange in September 2023.

According to GEB's 2025 semi-annual report, during the reporting period, the company achieved operating revenue of 835 million yuan, a year-on-year increase of 40.57%; net profit attributable to shareholders of the parent company was 75.9326 million yuan, a year-on-year increase of 32.86%; and net profit excluding non-GAAP net profit was 71.8886 million yuan, a year-on-year increase of 45.57%.

GEB stated that the company's first-half 2025 operating revenue increased year-on-year, primarily due to the increased mass production of new energy electric drive stator and rotor product projects within its precision components business, as well as increased deliveries of wind power products within its bearing retainer business.

Specifically, in the first half of 2025, the bearing retainer and accessories business achieved operating revenue of 427 million yuan, a year-on-year increase of 43.86%. Of this, wind power industry retainer products generated operating revenue of 214 million yuan, a year-on-year increase of 118.65%. The company actively promoted terminal application scenarios for asynchronous motor stator and rotor products, resulting in a significant increase in product projects. The precision components business achieved operating revenue of 340 million yuan, a year-on-year increase of 41.67%, of which the stator and rotor series products generated operating revenue of 133 million yuan, a year-on-year increase of 330.98%.

GEB continues to strengthen its technological barriers and patent defense. From 2020 to 2024, the company's R&D expenses increased annually, exceeding 100 million yuan in 2024. In the first half of 2025, the company's R&D expenses amounted to RMB 65.8083 million, a year-on-year increase of 29.64%, accounting for 7.88% of operating revenue.

As of June 30, 2025, GEB and its subsidiaries held 903 domestic patents, including 163 invention patents and 550 utility model patents, and 10 foreign patents. In the first half of 2025, 124 new patents were added, including 16 invention patents and 63 utility model patents.

Leveraging its technological innovation and superior product quality, GEB has established a significant customer base. In the bearing retainer field, the company has established long-term, stable partnerships with eight major global bearing manufacturers and leading domestic enterprises. In the automotive parts field, the company has successfully entered the global top-tier parts supplier system and has become a partner of well-known domestic automakers.

In May, GEB announced that its subsidiary, MATTESCO MEXICO S.A.DE C.V. (MATTESCO MEXICO), had received a letter of intent from a renowned global automotive parts company for the custom development and supply of new energy electric drive stator cores and rotor assemblies. The project lifecycle is expected to run from 2026 to 2031, with a total value of approximately 640 million yuan.

Notably, GEB actively rewards shareholders, distributing dividends of 43.8213 million yuan and 43.8213 million yuan in 2023 and 2024, respectively, representing dividend payout ratios of 33.08% and 44.02%, respectively. In the first half of 2025, the company plans to pay a cash dividend of 0.5 yuan (tax inclusive) per 10 shares, for a total dividend of 10.9553 million yuan, a dividend payout ratio of 14.43%.