ST Huilian 6.27% Equity Auction Falls: Taiking Technology Acquires Stake at Premium, Former Peers Become Shareholders

A judicial auction involving the actual controller’s shareholding has unexpectedly linked two commonly compared peers in the crystal oscillator industry—ST Huilun (SZ300460, stock price 9.31 yuan, market value 2.614 billion yuan) and Taijing Technology (SH603738, stock price 24.05 yuan, market value 9.281 billion yuan).

According to ST Huilun’s announcement on March 18 regarding the progress of its equity auction, the 6.27% stake held by the company’s controlling shareholder and actual controller has found a buyer through judicial auction. Notably, the buyer of 1.67% of the shares is Taijing Technology, a listed peer, which paid slightly more than ST Huilun’s closing price on March 18.

The Daily Economic News found that at previous investor meetings held by these two companies, investors often compared them. Beyond market value, business, and products, some investors even asked Taijing Technology, “How do you view the transfer of Huilun Crystal’s control rights?”

Now, with a former peer acquiring shares at a premium, this could add new variables to ST Huilun’s future.

Shares Auctioned Off to Two Buyers

According to ST Huilun’s disclosure on the auction progress, on March 16-17, the court publicly auctioned 17.6 million shares held by Xinjiang Huilun Equity Investment Partnership (Limited Partnership) (hereinafter Xinjiang Huilun) and Zhao Jiqing, the actual controller, representing 31.81% of their holdings and 6.27% of the company’s total share capital.

The auction results show that the shares were won by two buyers. Taijing Technology paid 47.5556 million yuan to acquire 4.7 million shares held by Zhao Jiqing, accounting for 1.67% of ST Huilun’s total share capital.

The Daily Economic News calculated that Taijing Technology’s purchase price was approximately 10.12 yuan per share. Before and after the auction, on March 13 and March 17, ST Huilun’s closing prices were 9.38 yuan and 9.42 yuan per share, respectively. On March 16, the stock saw a significant increase, reaching a high of 10 yuan per share. Additionally, according to Choice data (a financial data platform under Eastmoney), the average stock price over the 20 trading days before March 17 was 9.44 yuan per share. Therefore, Taijing Technology paid a slight premium for the shares.

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Public information shows that Taijing Technology’s main business is the research, production, and sales of quartz crystal frequency components, placing it in the same industry track as ST Huilun. This is why the two companies are often spotlighted for comparison.

For example, at the end of 2023, during a Taijing Technology investor meeting, someone asked, “How do you view the transfer of Huilun Crystal’s control rights to a natural person in the financial investment sector? Is it beneficial to the company’s competitive landscape?” Taijing Technology responded, “Details of the transfer have not been disclosed yet. The company is unaware of further developments; please refer to official announcements.”

When ST Huilun’s performance was poor, Taijing Technology often served as a benchmark for comparison. On May 12, 2022, during ST Huilun’s earnings presentation, an investor asked, “Compared to the same industry peer Taijing Technology, which has maintained high revenue and high profit margins…,” and “Huilun Crystal’s market value is twice that of Taijing Technology,” among other questions. In response, ST Huilun stated that their product segmentation and customer composition differ, making direct comparison inappropriate.

However, the performance gap is real. In recent years, ST Huilun’s operations have been under pressure, while Taijing Technology’s performance has been relatively stable.

At the end of January, ST Huilun issued a earnings forecast, expecting a net loss attributable to shareholders of 120 million to 160 million yuan for the previous year, compared to a loss of 189 million yuan in the same period last year. Revenue was estimated to be around 550 million to 620 million yuan. Taijing Technology did not release a forecast but reported that in the third quarter of 2025, revenue for the first nine months was 718 million yuan, with a net profit of over 35 million yuan.

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Actual controller’s shareholding reduced to 13.44%

Another major buyer in the auction is Shenzhen Jinlong No. 2 Investment Partnership (Limited Partnership) (hereinafter Jinlong No. 2). According to the successful bid confirmation, Jinlong No. 2 paid about 129 million yuan to acquire 12.9 million shares held by Xinjiang Huilun, representing 4.59% of the company’s total share capital.

Public information shows that Jinlong No. 2 has a strong state-owned background, with its core shareholder being China Merchants Ping An Asset Management Co., Ltd., established in 2017. It is Shenzhen’s first local asset management company authorized for bulk acquisition and disposal of non-performing financial assets (NPLs). As a professional asset manager, its subsequent moves regarding ST Huilun’s shares are closely watched by the market.

It is important to note that after the auction, the shareholding of Zhao Jiqing and his concerted parties in ST Huilun will decrease from 19.70% to 13.44%, but they will still remain the largest shareholders. ST Huilun also emphasized in its announcement that this auction will not lead to changes in the company’s actual control or the first largest shareholder, nor will it significantly impact the company’s operations or governance.

In early January, ST Huilun and related parties received an administrative penalty decision from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission, with fines of 3 million yuan for the company and 4 million yuan for Zhao Jiqing. Several former senior executives were also fined.

Daily Economic News