Hangzhou Yuanlin Landscaping Co., Ltd. announced plans to acquire 93.5031% controlling equity in Hangzhou Hualan Microelectronics Co., Ltd. through a combination of share issuance and cash payment. The deal is still in the planning stage, with valuation, consideration, and payment ratios undetermined. It is expected to constitute a major asset restructuring but not a reverse takeover, and will not change the listed company's controlling shareholder or actual controller.
Hualan Micro is a domestic storage core component supplier, developing storage controller chips and array controller chips, offering full-chain services from chips and modules to systems and solutions. Its business covers consumer, industrial, enterprise, and Xinchuang markets. Products fall into single-drive storage (self-developed SSD controller chips and modules for computer drives) and array storage (array controller chips, boards, and servers for data centers and HPC).
Yuanlin Shares originally focused on municipal landscaping engineering. Through its controlling subsidiary Yunhai Technology, it entered the semiconductor storage sector, shifting toward a dual-business model of landscaping plus semiconductor storage. In H1 2026, Yuanlin's total revenue was about 261 million yuan, with semiconductor storage contributing 114 million yuan, or 43.78%. Net loss attributable to parent was 71.07 million yuan, mainly due to contraction in traditional landscaping. Yunhai Technology posted 7.38 million yuan net profit, becoming a new profit source, with SMT, burn-in testing, and packaging lines for integrated production. Acquiring Hualan Micro would strengthen the second core business, create new profit growth, and improve risk resilience.
The announcement also flagged multiple operating risks at Hualan Micro. It has been on the U.S. Entity List since 2021; despite supply chain optimization and self-developed technology, uncertain international trade policy poses ongoing technology restriction risks. Storage chips iterate quickly, requiring high R&D investment and long validation cycles. Commercialization of enterprise array controllers and SSD controller chips is uncertain; slower-than-expected R&D could weaken competitiveness. Financially, Hualan Micro has large accumulated losses from heavy R&D spending. Net profit for the past two years and latest period was -199 million yuan, -48.05 million yuan, and 13.35 million yuan, turning profitable only in H1 2026, making short-term cash dividends difficult. It also faces inventory write-downs, accounts receivable bad debt, and government subsidy policy changes.
ICgoodFind: Yuanlin Shares is planning to acquire control of Hualan Micro, accelerating domestic storage controller chip layout, though the target still faces Entity List, R&D, and historical loss uncertainties.
