A leading Chinese power-electronics group is taking full control of its welding-equipment arm in a 664 million yuan cash deal, a bet that intelligent welding sits at the centre of high-end manufacturing.
Full ownership for 664 million yuan
Megmeet announced it will pay 664 million yuan in cash to acquire the remaining 46.30 per cent of Shenzhen Welding Technology, a subsidiary it already controlled, lifting its stake to 100 per cent. The deal values Shenzhen Welding at 1.457 billion yuan as of 30 June 2026. Against audited book value that is a 1.285 billion yuan premium, a 745.36 per cent uplift, and against the consolidated parent-equity figure a 1.215 billion yuan premium, or 501.50 per cent. The gap reflects how much the market now prices welding know-how embedded in robots and automated lines.
What Shenzhen Welding makes
Founded in 2017, the unit develops and makes intelligent digital gas-shielded welding machines. Its core processes include smooth short-circuit transfer, short-arc pulse, high-frequency pulsation energy control and high-speed intermittent welding. The product range spans MMA, MIG, MAG and TIG welders, submerged-arc equipment, heavy industrial inverter welders, carbon-arc gouging machines and handheld and robotic laser welders, aimed at high-end industrial manufacturing.
Those machines already serve China’s heavyweights: CRRC, China South Industries, China Railway Construction, China State Construction and China Shipbuilding. Shenzhen Welding posted 2025 revenue of 411.64 million yuan and net profit of 88.49 million yuan. In the first half of 2026 alone it earned 235.45 million yuan in revenue and 55.19 million yuan in net profit, already near 60 per cent of the full-year 2025 result, with operating cash flow jumping to 61.71 million yuan.
A locked-in payback
The sellers have committed that Shenzhen Welding’s cumulative net profit after deductions for 2026 to 2028 will be no less than 405 million yuan. As of 30 June 2026 the unit held 390.23 million yuan in assets against 148.00 million yuan of liabilities and 242.23 million yuan of net assets. For Megmeet, folding the welding arm wholly in-house tightens control over a segment that sits directly in the path of robotic and automated production lines.
Editor’s note: This is an adapted translation of the original OFweek report. It has been trimmed and restructured for readability for an international business audience. The full original (in Chinese) is at https://robot.ofweek.com/2026-09/ART-8321202-8120-30705622.html.