Andre Juice's Strategic Shift into Printed Circuit Board Materials
Yantai North Andre Juice Co. Ltd., a leading juice concentrate producer in China, announced its intention to acquire a controlling stake in Ningbo Yongqiang Technology Co. Ltd., a supplier of printed circuit board (PCB) materials. Andre Juice plans to invest between 600 million yuan and 800 million yuan in this acquisition, marking a significant shift from its traditional business focus.
Following the announcement, Andre's stock experienced a remarkable surge. Its Shanghai-listed shares hit the daily 10% increase limit for three consecutive days, while its Hong Kong-listed shares surged over 80% intraday on June 16, eventually closing 25.8% higher. This enthusiasm largely stems from Yongqiang Technology's involvement in the AI supply chain, which includes high-demand products like copper-clad laminates (CCL) and prepregs used in AI servers and data centers.
Yongqiang Technology, established in 2019, has a production capacity of 10 million square meters of high-speed, high-frequency, and bismaleimide triazine (BT) substrate materials. Its clientele includes major PCB manufacturers such as Victory Giant and Shennan Circuits. Despite its strategic position, Yongqiang reported a net loss of 66.95 million yuan in 2025, though it turned a modest profit in the first quarter of this year.
This acquisition marks Andre Juice's first venture into the high-tech materials sector, a move driven by the potential for higher valuations in the AI supply chain. The company's core juice business remains profitable, with steady performance over recent years, although it experienced some decline in the first quarter of 2026 due to industry cycles and a high base effect.
Despite the optimism, Andre Juice has acknowledged its lack of experience in the PCB sector and the potential integration risks involved. The company is poised to use its current cash and tradeable financial assets, totaling approximately 717 million yuan, to fund the acquisition. The transaction's final price will depend on subsequent asset appraisals.
Interestingly, this acquisition opportunity arose after a previous suitor, Yanjan New Material Co., withdrew its purchase plan due to disagreements on performance commitments and transaction valuation. This indicates a potential variability in Yongqiang's valuation and performance assessments.
Andre Juice's market valuation now reflects investor expectations of its successful transition into the PCB market, with its Hong Kong shares trading at a forward price-to-earnings ratio comparable to other PCB manufacturers. However, the company must navigate the complexities of a new industry to secure its position in the market.
