Chuangxiang Youke | Nine Industry Experts Deeply Interpret: Why Is M&A and Restructuring in 2026 the Core Key to Unlocking Corporate Breakthroughs?

Professor Tian Weihua—For SMEs, whose internal resources are limited, can M&A and restructuring serve as an effective pathway to overcome development bottlenecks? What M&A models are suitable? Professor Tian Weihua: Absolutely. M&A and restructuring are not merely the domain of large enterprises; they are, in fact, a critical path for SMEs to break through development constraints and achieve leapfrog growth. SMEs often face limitations in internal resources, R&D capabilities, and market share—making organic growth alone insufficient for rapid advancement. M&A, however, enables SMEs to swiftly fill capability gaps and seize market opportunities. Two M&A models are particularly suitable for SMEs: 1. Horizontal M&A focused on niche segments: By acquiring small peer companies in the same industry, SMEs can expand production scale, integrate customer resources, and increase market share within specialized domains—achieving the goal of being “small yet refined, small yet strong.” 2. Collaborative M&A anchored to industry leaders: SMEs proactively engage with leading enterprises—via equity transfers, minority investments, etc.—to embed themselves into the leaders’ industrial ecosystems, leveraging their resources, technologies, and distribution channels for growth. Additionally, SMEs may pursue diversified operations via M&A to enter high-growth sectors and mitigate risks from overreliance on a single business line—though they must carefully control acquisition scale to avoid exceeding their operational capacity and ensure robust post-merger integration to realize intended benefits. Professor He Qiaodong—From the perspective of controlling-interest changes, what new characteristics do such M&As exhibit in 2026? What long-term implications do they hold for corporate development? Professor He Qiaodong: In 2026, controlling-interest transfers among listed companies remain highly active, exhibiting three distinct new features: 1. State-owned capital and industrial capital have emerged as core acquirers. Local SASACs acquire controlling stakes to strengthen industrial chains and integrate regional resources—for instance, Shandong Pharmaceutical Glass and Jiasitang both saw their actual controllers change to provincial SASACs, becoming pivotal forces in industrial consolidation. 2. Lock-up periods have lengthened significantly, with 36-month and even 60-month lock-ups now commonplace. Such extended commitments deeply align acquirers’ interests with those of the target companies, fostering long-term value creation. 3. Controlling-interest changes are increasingly integrated with industrial upgrading: Traditional-sector firms pivot into new-quality-productivity sectors following ownership changes, while hard-tech firms accelerate capitalization by leveraging listed platforms. The long-term impact of controlling-interest changes centers on “reconstructing developmental paradigms”: For acquirers, it offers rapid access to a listed platform and facilitates industrial resource integration, expanding market influence; for acquired firms, it brings vital support in funding, technology, and management—helping resolve operational challenges and drive industrial upgrading. Yet post-acquisition, firms must diligently manage organizational and cultural integration to avoid superficial alignment (“in name only”) and truly unlock sustained value growth. Professor Yan Pengfei—Integration is pivotal during M&A and restructuring. Many M&A failures stem from poor integration. How, then, can post-merger integration be executed effectively to maximize M&A value? Professor Yan Pengfei: Indeed, the crux of M&A lies not in deal completion—but in successful integration. This very distinction separates professional, value-creating M&A from mere transactional activity.

Manufacturing Sector, Week 19 of 2026 | Simulation and Energy Storage Stocks Surge

Assuming a simple P/E valuation range of 17–20x (where 17x corresponds to the historical 20th percentile), the implied market cap would be approximately ¥250–300 billion. Now, looking at the downside: 1. Zijin Mining: Zhongji saw its stock surge immediately upon inclusion in the index, whereas Zijin plunged—highlighting just how volatile manufacturing stocks can be. Zijin’s core business involves gold, copper, and other commodities. A close look at its stock price versus futures prices reveals tight correlation with copper prices (see chart), but relatively weak correlation with gold prices. Thus, forecasting copper price trends largely suffices to anticipate Zijin’s stock movements. This sounds straightforward—but two caveats apply: First, forecasting commodity prices is exceptionally difficult, requiring global macroeconomic analysis; second, stock price movements lag—and amplify—futures price fluctuations, adding further complexity. Hence, we frequently advise readers: “Research adds value; investment subtracts risk.” If you truly possess reliable price forecasts, direct futures investment is more appropriate. 2. Ganfeng Lithium: Like Zijin, Ganfeng’s stock price closely tracks lithium carbonate futures—but differs in key respects. Domestic lithium supply comes from both spodumene mines and salt-lake brines, while demand stems from EVs and energy storage systems—making this sector highly visible and prone to speculative narratives (“micro-essays”). This week, several rumors circulated: downstream cell prices failed to pass through cost increases smoothly; overseas players raised full-year shipment forecasts, implying stronger export volumes; some firms allegedly concealed inventory, suggesting ample real-world supply. In sum, market sentiment holds that supply growth outpaces demand growth—keeping lithium carbonate prices largely range-bound between ¥150,000–200,000 per ton. Forecasting lithium carbonate futures remains extremely challenging due to numerous influencing factors. Yet as a core upstream input for two major industrial chains, it warrants close monitoring: sustainability of price hikes and smoothness of price transmission significantly affect profit margins of battery and energy storage leaders. 3. Seres: Automotive OEMs represent another “investment-subtraction” segment—both because margins are thin and labor-intensive, and because competitive dynamics shift rapidly. Financially, Seres posted 34% YoY revenue growth and 1% YoY net profit growth in Q1 2026—but government subsidies contributed substantially, resulting in a 74% YoY decline in non-GAAP net profit—a relatively weak performance. Sales-wise, analyzing Seres essentially means analyzing Avatr: Avatr sold nearly 70,000 units in Q1, up 55% YoY. In April alone, it sold 30,000 units—respectable, yet less impressive when compared to peers: other new-energy automakers also sold ~30,000 units, while Leapmotor reached 70,000 units. Avatr’s luster has thus dimmed relative to prior years. Seres’ P/E ratios hovered around 25–30x in the past two years—not reflective of a conventional automaker, but rather of its intelligent, tech-driven attributes. This year, valuation becomes even more complex: with projected net profits ranging widely (¥6–10 billion), the reasonable P/E band widens considerably. Personally, I consider 15–20x P/E a fair range—positioned between traditional automakers and EV leaders. That wraps up this week’s update. The market experienced sharp volatility this week: after surging past the 4,200-point mark, it fell for two consecutive days. Broad-market indices edged slightly lower, while the manufacturing sector index rose modestly—outperforming broad indices by roughly one percentage point. Overall, performance remained solid.

Ascent Industries Reports Q1 2026 Revenue Growth Amid Acquisitions

May 6, 2026

Ascent Industries reported an 8.9% YoY net sales increase to $19.4 million in Q1 2026, driven by project conversions and acquisitions including Sigma Coatings.

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Ascent Industries Co. Announces First Quarter 2026 Results

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