Far East subsidiary buys 80% of liquid-cooling firm for RMB 216M
What's the deal? Far East Smarter EnergyDealroom has a profile for this one. Try Dealroom → said its subsidiary Far East ElectricDealroom has a profile for this one. Try Dealroom → will pay RMB 216 million in cash for an 80% stake in Huizhou Fudewangwang Industrial DevelopmentDealroom has a profile for this one. Try Dealroom →, a maker of liquid-cooling parts. The sellers are founder Huang Tuwang and Li Mingxia, each transferring roughly 40% of the company. Once complete, Fudewangwang becomes a controlled sub-subsidiary and joins Far East's consolidated accounts.
What does the target do? Founded in 2006, Fudewangwang is a state-designated "little giant" specialist firm making core liquid-cooling components such as cold plates and manifolds, plus heat sinks for servers, electric vehicles, and telecom base stations.
By the numbers. In 2025, the target posted revenue of RMB 256.42 million and net profit of RMB 14.16 million, with net assets of RMB 59.24 million. First-quarter 2026 revenue reached RMB 77.69 million and net profit RMB 7.73 million, already more than half the prior full year.
What's the endgame? Far East wants to close the loop across power supply, connectivity, and cooling infrastructure. The deal is meant to speed up its liquid-cooling research and industrial delivery, tapping the target's existing customer ties.
The terms. The price implies a nine-times forward price-to-earnings multiple and a 303.15% valuation premium over book. The sellers guarantee net profit of no less than RMB 25 million, RMB 30 million, and RMB 35 million for 2026 through 2028 — at least RMB 90 million combined — backed by share pledges and clawback clauses. Founder Huang stays on as general manager for at least three years.
What could go wrong? Far East's goodwill stood at RMB 603.88 million at the end of 2025 and will rise further after the deal, raising impairment risk if the target underperforms. The company also flagged risks around completing the transfer, meeting the profit targets, and integrating the business.
The signal: Liquid cooling is drawing capital as servers, EVs, and telecom gear demand better thermal management. By buying rather than building, Far East is betting that owning a proven cooling supplier is the faster route to a full infrastructure stack.
Read more: minichart.com.sg
Image credit: Generated with Gemini
