On July 30, 2026, Jiangsu Feymer Technology Co., Ltd. (Stock Code: 688350.SH) announced its plan to acquire a 51% equity stake in Jiaxing Watertech Environmental Protection Technology Co., Ltd. for approximately RMB 696 million in cash, through a combination of direct and indirect shareholding, taking control of this NEEQ-listed company.
This acquisition marks Feymer Technology‘s entry into the industrial water treatment service sector for high-end manufacturing fields including semiconductors and display panels.
Founded in 2016, Watertech is an integrated industrial water treatment service provider specializing in R&D, production, sales, and customized operation management of water treatment chemicals. Its product portfolio includes scale inhibitors, corrosion inhibitors, dispersants, biocides, defoamers, flocculants, membrane cleaners, and other specialty water treatment agents. The company offers full-chain services ranging from on-site surveys, dynamic and static simulation tests, chemical selection, intelligent dosing, water quality diagnostics, to system operation and maintenance.
As of the end of 2025, Watertech held over 80 authorized patents, including 58 invention patents. The company occupies a key position in BOE‘s water treatment chemical supplier system, with additional clients including CSOT, SK Hynix, AT&S, Zing Semiconductor, and Shanghai Environment, a leading waste treatment enterprise. In 2025, revenue from the display panel and semiconductor sectors accounted for over 50% of Watertech’s total revenue, making it one of the very few domestic chemical service providers that have truly penetrated semiconductor water systems.
In 2025, Watertech achieved operating revenue of RMB 474 million and net profit of RMB 105 million, with a gross margin of 42.37%, a net margin of approximately 22%, and a weighted ROE of 26% — all significantly above industry averages. From January to May 2026, the company generated RMB 198 million in revenue and RMB 36.52 million in net profit. Watertech‘s founding shareholders have committed to cumulative non-GAAP net profit of no less than RMB 360 million for the 2026–2028 period.
Feymer Technology’s industrial water treatment business previously focused on sectors such as steel and petrochemicals, while Watertech has established a strong presence in emerging fields including display panels, semiconductors, and waste resource utilization. Upon completion of this transaction, Feymer Technology will form an integrated technical capability encompassing “water treatment chemicals + membrane products + engineering + O&M + intelligent control,” evolving from a material supplier to a comprehensive water system solution provider.
For Feymer Technology, holding a controlling stake in Watertech represents a significant step toward becoming a new materials platform company. Through Watertech, Feymer will enter high-value sectors including semiconductor and display panel manufacturing — covering wafer fab ultrapure water systems, panel production line circulating water systems, and data center cooling water networks — advancing from a water system service provider to a new materials platform company serving high-value industries.
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