Taifu Pump Industry's 800 million ownership stake finalized: Who is the new buyer "Zhengyuanxing"?

(Source: Caixin News)

On March 31, Taifu Pump Industry opened with a 20.00% limit-up, closing at 41.88 yuan per share.

Following “The 5th Pump Company to Exit the Market! Founder Expected to Cash Out 1.49B Yuan at a High Price,” on March 31, the transfer of control rights for Taifu Pump Industry (300992.SZ) was finally finalized.

The announcement shows that the original controlling shareholder Chen Yiwen and his wife Lin Hui transferred their directly and indirectly held 24.11% stake in the listed company to Zhengyuanxing (Shanghai) Enterprise Management Partnership (Limited Partnership) (referred to as “Zhengyuanxing”); after the transaction, Chen Yiwen and his wife’s shareholding dropped to 20.60%, with Zhengyuanxing taking control of Taifu Pump Industry, and Sun Kai becoming the actual controller of the listed company.

Thus, Taifu Pump Industry has become the fifth A-share listed pump company to change hands after New World Pump (“currently Tianshan Aluminum (002532.SZ)”), Dongyin Co. (“currently Luoxin Pharmaceutical (002793.SZ)”), Southern Pump Industry (300145.SZ), and Tianyi Pump Industry (“currently ST Jingfeng (000908.SZ)”). Unlike the previous acquirers involved in manufacturing, Zhengyuanxing’s actual controlling party, “Shanghai Xinzhengxin Intellectual Property Service Co., Ltd.” (referred to as “Xinzhengxin”), is merely an intellectual property service provider with no experience in manufacturing.

Who is Zhengyuanxing?

According to the announcement, Zhengyuanxing was established in November 2025, registered in Shanghai, with a capital of 50 million yuan. It is controlled by Sun Kai through Xinzhengxin Trust, which holds 90% of the shares; additionally, Xinzhengxin’s wholly owned subsidiary “Shanghai Xinzhengxin Technology Co., Ltd.” holds the remaining 10%. This means Zhengyuanxing is essentially a shell company set up by Sun Kai for the acquisition.

Qichacha shows that Xinzhengxin was founded in January 2009, with a registered capital of 83.6636 million yuan. The chairman is Li Changxu, with Sun Kai as the founder, company legal representative, and general manager. Its main business includes intellectual property rights management consulting, rights protection services, and related services, including trademarks, patents, and copyrights. Recently, it has received provincial-level certifications as a “Specialized, Refined, Distinctive, Innovative SME” and an “Advanced Technology Service Enterprise.” Caixin News notes that the company’s official website is currently inaccessible due to “website maintenance.”

Looking at its financing history, Xinzhengxin received two rounds of funding in 2012 and 2014 from Datai Capital, Dachen Venture Capital, Fenxiang Investment, and Jingxi Venture Capital, totaling nearly 100 million yuan. However, the latest shareholder list shows that at least 19 private equity funds have invested in the company, including BoYu Capital’s BoYu Phase III (Shanghai) Equity Investment Fund, which holds 11.76%; and the “Guotou (Shanghai) Technology Achievement Transformation Venture Capital Fund Partnership (Limited Partnership),” jointly established by China Development Investment Group, China Life Insurance, and Shanghai Guotou, which holds 4.84%.

Notably, Xinzhengxin submitted an IPO application to the Growth Enterprise Market in June 2015, planning to issue no more than 16.07 million shares, representing at least 25% of the post-issue share capital. The prospectus shows that from 2012 to 2014, the company’s total revenue was 68.7125 million yuan, 119 million yuan, and 130 million yuan, with a compound growth rate of 37.77%; net profit attributable to parent was 16.2441 million yuan, 30.8568 million yuan, and 33.0633 million yuan, with a compound growth rate of 42.66%. As of the end of 2014, the company’s total assets reached 169 million yuan.

Subsequently, public information indicates that Xinzhengxin’s IPO application was terminated before 2017, for reasons unknown.

Acquisition at a Premium of 820 Million Yuan

Returning to the specific transaction structure.

It is reported that the transfer price for this deal is 35.67 yuan per share, with a total consideration of 820 million yuan. Compared to the pre-trading suspension closing price of 34.9 yuan on March 23, the premium rate is 2.21%. The transaction targets include 3.9885 million shares and 1 million shares directly held by Chen Yiwen and Lin Hui, accounting for 4.18% and 1.05% of the total share capital, respectively; as well as 18 million shares held by their related party “Wenling Dijiujie Electronic Technology Co., Ltd.,” accounting for 18.88%.

At the same time, Zhengyuanxing also commits that: the shares acquired through agreement transfer will be locked for 60 months from the date of registration, and will not be transferred or entrusted for management; within the next 12 months, there are no clear plans to sell, merge, or restructure the company’s assets or business; and within 36 months, it will not inject its own or related-party assets or businesses into the listed company in any way.

Regarding funding sources, Zhengyuanxing’s own funds will be no less than 410 million yuan, and self-raised funds may include bank M&A loans. Zhengyuanxing’s controlling shareholder has obtained a “Loan Intention Letter” issued by China CITIC Bank Ningbo Branch.

After the transaction, Chen Yiwen will still hold 14.85% of the shares, and Lin Hui will hold 3.15%. However, the two and their two shareholding platforms will waive voting rights for a total of 10.63 million shares, representing 11.15% of the company’s total share capital, for a period of 60 months. This arrangement reduces Chen Yiwen’s voting rights to 9.45%, while Zhengyuanxing will hold 24.11%, creating a gap of 14.66 percentage points. This not only ensures Zhengyuanxing’s control but also retains the original controlling shareholder’s equity interests.

A patent service provider and a listed water pump manufacturing company, with no real business overlap, but the market responded positively: on March 31, Taifu Pump Industry’s stock closed with a 20.00% limit-up, at 41.88 yuan per share.