From Mergers and Acquisitions Failure to Spin-Off and Exit: Taifu Pump Industry's Chen Yiwen Sells Shares and Renounces Voting Rights, Zhengyuan Xing's Sun Kai Acquires 24.11% Controlling Stake | Yangtze River Delta Capital Bureau

Article | Sina Finance Shanghai Station Shili

After a failed cross-industry acquisition, the control of Zhejiang Taifu Pump Co., Ltd. quickly changed hands.

On the evening of March 30, Taifu Pump announced that the controlling shareholders Chen Yiwen, Lin Hui, and the concerted action partner Wenling Dijiujie Electronic Technology Co., Ltd., signed a control acquisition agreement with Zhengyuanxing (Shanghai) Enterprise Management Partnership (Limited Partnership). Through share transfers and indirect shareholding arrangements, Zhengyuanxing will hold a total of 24.11% of the company’s shares and voting rights, making Sun Kai the new actual controller.

On the surface, this appears to be a routine control transaction, but in the context of the company’s actions over the past two years, it seems more like a “result” with cause and effect.

Let’s go back in time. In July 2025, Taifu Pump announced plans to acquire at least 51% of Zhejiang Nanyang Huacheng Technology Co., Ltd., with cash, attempting to enter the BOPP material field for film capacitors and seek new growth curves. This is a typical cross-industry move: from traditional water pump manufacturing to electronic materials. But just three months later, the company disclosed that the major asset restructuring was terminated because the two sides could not reach an agreement on the transaction plan.

An unsuccessful cross-industry attempt thus became a turning point.

Almost immediately after the cross-industry attempt failed, the control transfer plan surfaced. According to the arrangement, Chen Yiwen and Lin Hui will transfer 3.9885 million and 1 million shares respectively to Zhengyuanxing, while also selling 100% of Dijiujie Electronic, resulting in Zhengyuanxing holding a total of 24.11% of shares through direct and indirect means.

What truly determines control is the voting rights arrangement. Chen Yiwen, Lin Hui, and the concerted actors Hongtai Investment and Yitai Investment promised to waive voting rights for a total of 10.6301 million shares within 60 months of the transaction. After waiving, Chen Yiwen’s voting rights proportion drops to 9.45%, creating a 14.66% gap with Zhengyuanxing.

This “transfer + waiver” combination is uncommon in A-shares, and the message it conveys is relatively clear—this is not passive dilution but an active choice to relinquish control.

If we extend the timeline, Chen Yiwen’s move seems more like a response to the company’s operational reality over the past few years. Before going public, from 2017 to 2020, revenue and profit maintained growth, with relatively stable profitability; after listing, although revenue expanded, net profit gradually declined from 61.12 million yuan in 2021 to 12.17 million yuan in 2024. The 2025 performance quick report shows revenue reaching 936 million yuan, up 25.88% year-on-year, but net profit attributable to the parent was only 17.56 million yuan.

Against the backdrop of rising revenue but squeezed profits, cross-industry attempts were made, and when these attempts failed, control transfer became another path.

Contrasting Chen Yiwen’s “exit” is Sun Kai’s “entry.” The announcement provides very limited information: he gained control through Zhengyuanxing and became the new actual controller of the listed company. Beyond that, there is no further public information about his industry background or past experience.

More noteworthy is his attitude. The announcement clearly states that within the next 12 months, there are no plans for asset sales, mergers, or restructuring of the listed company and its subsidiaries; after the completion of this equity change, within 36 months, he will not inject assets or businesses of Zhengyuanxing and its affiliates into the listed company.

This means it is not a takeover aimed at “asset injection” or “industry restructuring.”

In most control transactions, the new actual controller emphasizes synergy, transformation, or resource infusion, but in this case, these expectations are deliberately suppressed. Sun Kai’s entry appears more like a control-layer handover rather than immediate business restructuring.

On March 31, the company resumed trading and hit the daily limit, closing at 41.88 yuan, with the market giving a short-term positive response. But beyond sentiment, the structure and pace of this transaction show a more restrained path: the original controller chose to exit after the transformation failed, and the new entrant is not rushing to change the company’s operations.

From the failed cross-industry move to the control change, Taifu Pump has not immediately found a new growth answer, but the company’s stage has changed. For this traditional manufacturing enterprise, this control-layer change may itself be the beginning of seeking the next direction.