Leadrive Divests Stake in Hycean Intelligent's Parent, Selling to Former Asset Sellers

Leadrive (600641.SH) has divested its entire stake in the controlling shareholder of Hycean Intelligent (300720.SZ) in a transaction that highlights a tangled network of relationships between the two listed companies. According to a Sept. 3 announcement, Leadrive's subsidiary will sell its 10% share in Suzhou Zhongjing Zhixin Semiconductor for a total of ¥150 million.

Transaction Details

Leadrive announced its wholly-owned subsidiary, Chizhou Wanye Technology Development Co., will transfer its 10% partnership share in Zhongjing Zhixin to a consortium of three companies: Nanjing Quanyi Technology, Nanjing Yuanfu Technology, and Nanjing Diyuan Technology. The sale is expected to generate a pre-tax gain of approximately ¥50 million for Leadrive.

Leadrive, which acquired the stake for ¥100 million last year, stated the divestment aligns with its strategic plan to optimize its asset structure and focus on its core business in integrated circuit equipment and materials. The company noted the sale will improve its asset liquidity and strengthen the operational capabilities of its primary business segments.

A Circular Ownership Web

The identities of the buyers are particularly notable. In June of this year, Hycean Intelligent acquired a 15.30% stake in Nanjing Jiyi Semiconductor for ¥130 million. The sellers in that transaction were the same three entities—Nanjing Quanyi, Nanjing Yuanfu, and Nanjing Diyuan.

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This new deal effectively means the founding shareholders of Nanjing Jiyi, who sold a portion of their semiconductor business to Hycean, have now used the proceeds to become indirect shareholders of Hycean by purchasing a stake in its parent company, Zhongjing Zhixin. Zhongjing Zhixin became Hycean's controlling shareholder last year after acquiring a 29.97% stake.

Context: Strategic Pivots

Both Leadrive and Hycean Intelligent are in the midst of significant strategic transformations. Leadrive, formerly the real estate-focused Wanye Enterprises, has been pivoting to the semiconductor industry since a 2024 takeover. It is now focused on IC core equipment, new materials, and precision components.

Similarly, Hycean Intelligent, traditionally a manufacturer of automatic weighing equipment, has been aggressively expanding into the semiconductor sector under its new controller, Deng Yongyi, who has extensive experience in the industry. Its acquisition of the stake in Nanjing Jiyi, a producer of gallium arsenide (GaAs) wafers, marked a key step in this diversification strategy.