Galaxy Magnet Terminates Acquisition Deal Worth Over 400 Million Yuan, Price Disagreement Results in Six Months of Restructuring Efforts Coming to Naught

Daily Economic News Reporter: Huang Bowen    Daily Economic News Editor: Wen Duo

On March 12, Galaxy Magnetics (SZ300127, stock price 34.80 RMB, market value 11.245 billion RMB) announced that the company’s board of directors approved the relevant proposal and decided to terminate the previously planned major asset restructuring.

This means that Galaxy Magnetics’ acquisition of 100% equity of Sichuan Kyoto Longtai Technology Co., Ltd. (hereinafter referred to as Kyoto Longtai) has fallen through.

According to the announcement, the main reason for terminating the transaction is that “the company and the transaction counterparty failed to reach an agreement on core terms such as the transaction price.” The company stated that the termination was a cautious decision made after comprehensive analysis of transaction conditions, industry, and capital market environment, and after full communication with the transaction counterparty.

The target company was previously estimated to be worth about 450 million RMB

According to previously disclosed information, Kyoto Longtai was established on December 14, 2011, with a registered capital of 94.65 million RMB. The company is a high-tech enterprise integrating R&D, manufacturing of rare earth permanent magnet ferrite materials, development and manufacturing of magnetic material production equipment, and sales.

Kyoto Longtai’s official website shows that the company produces 15,000 tons of high-performance permanent magnet ferrite annually, with products involving ferrite permanent magnets, sintered rare earth permanent magnets, bonded rare earth permanent magnets, applied in automotive, home appliances, medical, and other fields.

Galaxy Magnetics announced on the evening of September 26, 2025, that after the completion of this transaction, the company would further expand its product variety of magnetic materials, increase market share in the automotive sector, form complementary advantages, enrich product offerings, and enhance its ability to resist market risks.

The announcement also stated that, based on preliminary negotiations among the transaction parties, the estimated value of the target (Kyoto Longtai) was about 450 million RMB, but final financial data and valuation results were still pending.

Galaxy Magnetics’ main revenue comes from bonded NdFeB magnets, hot-pressed magnets, Sintered Co magnets, and injection-molded magnets. Its annual capacity is approximately 4,000 tons for bonded NdFeB magnets, 300 tons for hot-pressed NdFeB magnets, and 200 tons for Sintered Co magnets.

An investor briefing will be held regarding this matter

Galaxy Magnetics’ acquisition process began on September 15, 2025.

On that day, the company announced a trading halt, stating that it was planning to issue shares and pay cash to acquire assets and raise supporting funds. By September 25, 2025, the company held the eighth board of directors’ third meeting, approving the “Preliminary Plan for the Issuance of Shares and Payment of Cash to Purchase Assets and Raise Supporting Funds of Chengdu Galaxy Magnetics Co., Ltd.” and its summary.

Subsequently, Galaxy Magnetics fulfilled its information disclosure obligations according to relevant regulations, disclosing progress monthly.

In the progress announcement on February 24, 2026, the company stated that as of the date of this announcement, work related to auditing, valuation, due diligence, etc., was still ongoing, and the transaction parties still needed to further negotiate the transaction plan.

However, after nearly half a year of efforts, the transaction was not successfully completed but was directly terminated.

In the latest announcement, Galaxy Magnetics also stated that the company’s current production and operation are normal, and the termination of this transaction will not cause significant adverse effects on the company’s current operations and strategic development, nor will it harm the interests of the company and shareholders, especially minority shareholders.

According to the relevant regulations of the Shenzhen Stock Exchange, the company has decided to hold an “Investor Briefing on the Termination of the Share Issuance and Cash Payment for Asset Purchase and Supporting Fundraising” (hereinafter referred to as the “Briefing”) to interact and communicate with investors. The briefing will be held on March 16, 2026 (Monday).

Daily Economic News