On October 9, Weichai Heavy Machinery Co., Ltd. issued an announcement regarding the completion of the delivery for the acquisition of 100% equity of Changzhou Fiberglass Reinforced Plastic Shipyard Co., Ltd.
The announcement shows that Weichai Heavy Machinery held its third interim shareholders’ meeting of 2025 on September 1, 2025, reviewed and passed the “Proposal on the Company’s Acquisition of 100% Equity of Changzhou Fiberglass Reinforced Plastic Shipyard Co., Ltd. and the Connected Transaction”, agreeing to purchase the 100% equity of Changzhou Fiberglass Reinforced Plastic Shipyard Co., Ltd. held by the company’s controlling shareholder, Weichai Holding Group Co., Ltd., by means of cash payment.
The transaction price is approximately RMB 492 million. After the completion of the transaction, Changzhou Fiberglass Reinforced Plastic Shipyard will become a wholly-owned subsidiary of Weichai Heavy Machinery and will be included in the consolidated financial statements of Weichai Heavy Machinery. This transaction aims to improve the industrial layout of Weichai Heavy Machinery, expand the boat business segment, create new business growth points, and enhance the company’s comprehensive competitiveness.
Previously, on August 6, 2025, Weichai Heavy Machinery signed the “Equity Transfer Contract between Weichai Holding Group Co., Ltd. and Weichai Heavy Machinery Co., Ltd. concerning Changzhou Fiberglass Reinforced Plastic Shipyard Co., Ltd.” with Weichai Group.
Weichai Heavy Machinery recently received notification from Changzhou Fiberglass Reinforced Plastic Shipyard that Changzhou Fiberglass Reinforced Plastic Shipyard has completed the industrial and commercial change registration for this transaction; Weichai Heavy Machinery has completed the payment of the equity acquisition price of RMB 491,669,400 to Weichai Group as stipulated in the Contract. As of the disclosure date of the latest announcement, the equity delivery for this transaction has been completed. Thus, Weichai Heavy Machinery holds 100% equity of Changzhou Fiberglass Reinforced Plastic Shipyard, and Changzhou Fiberglass Reinforced Plastic Shipyard has become a wholly-owned subsidiary of Weichai Heavy Machinery.
It is understood that Changzhou Fiberglass Reinforced Plastic Shipyard was established in 1979 and merged into Changzhou Lanxiang Machinery Co., Ltd. in 1990. In January 2014, Changzhou Fiberglass Reinforced Plastic Shipyard completed its corporatization restructuring. After the restructuring, its registered capital was RMB 70 million, and its shareholders included Changzhou Lanxiang Machinery Co., Ltd., Dalian Huamo Investment (Limited Partnership), and 37 natural persons including Liu Liguo. Among them, Changzhou Lanxiang Machinery Co., Ltd. held 45% equity, and Dalian Huamo Investment (Limited Partnership) held 28% equity.
In April 2020, 100% equity of Changzhou Fiberglass Reinforced Plastic Shipyard was publicly listed for transfer on the Beijing Equity Exchange; in June 2020, Weichai Group acquired 100% equity of Changzhou Fiberglass Reinforced Plastic Shipyard through competitive bidding, with a total transaction consideration of approximately RMB 324 million. In February 2022, the shareholders of Changzhou Fiberglass Reinforced Plastic Shipyard made a shareholder resolution, agreeing to increase the registered capital of Changzhou Fiberglass Reinforced Plastic Shipyard from RMB 70 million to RMB 630 million; in April 2022, Weichai Group completed a capital contribution of RMB 160 million; in February 2023, Changzhou Fiberglass Reinforced Plastic Shipyard completed the industrial and commercial registration for this capital increase.
The main business of Changzhou Fiberglass Reinforced Plastic Shipyard is the research, development, and production of various boats under 30 meters, including composite material, steel, and aluminum boats. Its main products are official boats, work boats, and leisure boats. In 2022, Changzhou Fiberglass Reinforced Plastic Shipyard established a wholly-owned subsidiary, Boxing Shipbuilding Technology (Qingdao) Co., Ltd., to invest in and construct the Weichai (Qingdao) Marine Equipment Manufacturing Center project, expanding the boat business for vessels over 30 meters and under 80 meters. Currently, it has orders in hand exceeding RMB 400 million. In the long term, after Boxing Company’s Phase I capacity is fully operational, the annual production will be 30 ships, with a designed output value of RMB 1 billion.
In 2024, Changzhou Fiberglass Reinforced Plastic Shipyard achieved operating revenue of RMB 179 million, operating profit of -RMB 31.7412 million, and net profit of -RMB 33.7375 million. As of the end of February 2025, the total assets of Changzhou Fiberglass Reinforced Plastic Shipyard were RMB 871 million, and total liabilities were RMB 650 million.
As a leading enterprise in the marine power field, Weichai Heavy Machinery’s core products are medium- and high-speed diesel engines, generator sets, and power integration systems. Changzhou Fiberglass Reinforced Plastic Shipyard’s main business is the research, development, and production of various boats, with main products being official boats, work boats, and leisure boats. For a long time, Weichai Heavy Machinery has been planning its layout, seeking suitable downstream boat manufacturers to achieve industrial integration and connect the upstream and downstream industry chains.
After the completion of this transaction, Weichai Heavy Machinery will achieve vertical integration of power systems and hull manufacturing. Through the integrated delivery of “power system + hull design”, it will form a differentiated competitiveness and seize market opportunities in the high-value-added boat sector. Changzhou Fiberglass Reinforced Plastic Shipyard is mainly engaged in the research, development, production, and sales of boats, while Weichai Heavy Machinery is mainly engaged in marine power systems and other businesses. The two parties can generate the following synergies:
First, through this transaction, Weichai Heavy Machinery extends its industry chain, achieving vertical integration of power systems and hull manufacturing. Weichai Heavy Machinery and Changzhou Fiberglass Reinforced Plastic Shipyard can conduct technical compatibility optimization during the product development stage, deeply integrating marine diesel engines, generator sets, propellers, and hull design, optimizing power matching efficiency, reducing energy consumption and emissions, and enhancing product competitiveness;
Second, Weichai Heavy Machinery and Changzhou Fiberglass Reinforced Plastic Shipyard can share procurement channels, achieving cost reduction and quality improvement through centralized procurement;
Third, Weichai Heavy Machinery and Changzhou Fiberglass Reinforced Plastic Shipyard can achieve complementary sales channels. Weichai Heavy Machinery can grasp first-hand market demand through the terminal channels of Changzhou Fiberglass Reinforced Plastic Shipyard, thereby clarifying the direction for business development;
Fourth, Weichai Heavy Machinery and Changzhou Fiberglass Reinforced Plastic Shipyard can establish an integrated “power-hull” service system, providing customers with comprehensive hull maintenance services. This value-added service can reduce customers’ annual maintenance costs while creating new profit sources;
Fifth, Weichai Heavy Machinery has a comprehensive layout in marine power propulsion systems, and core components such as engines and propellers have completed development, which can be supplied for the products of Changzhou Fiberglass Reinforced Plastic Shipyard and Boxing Company, achieving synergistic wins.
