Joint Inspection Technology (301115.SZ) Acquires CNOOSHUI Huaying: Entering the Field of Electric Power Technology Services to Strengthen New Energy Business
Zhitong Finance App learned that on July 23, 2026, Joint Inspection Technology (301115.SZ) announced that it intends to acquire 69.6203% of the shares of China Water Huaying (Guangzhou) Energy Management Co., Ltd. (hereinafter referred to as “China Water Huaying”, the “target company”) with its own capital of 6157.91.55 million yuan. After the transaction is completed, Zhongshui Huaying will become the controlling subsidiary of JISC. Its business entity, China Water Guoxin (Guangzhou) Energy Technology Co., Ltd. (hereinafter referred to as “China Water Guoxin”), will be the holding of 55% of the shares of China Inspection Technology rights.
This move is a strategic step for JIT to quickly enter the field of power technology services. Through this, it is possible to lay out segmented tracks such as new energy grid-related testing, power plant testing, energy storage testing, and power grid simulation modeling, etc., to fill the layout of JIT's inspection services on the power system side, achieve strategic expansion into the new energy and power technology service business, optimize the company's business structure, and enhance long-term development space.
Mergers and acquisitions are the only way to test the scale and growth of the industry
By the end of 2025, China had 54,340 inspection and testing institutions of various types that had obtained qualification certification (CMA), with 1.5864 million employees. In 2025, they achieved revenue of 530.308 billion yuan and issued a total of 571 million inspection and inspection reports.
The inspection and testing industry has always been characterized by being “small and weak”. More than 90% of inspection and testing institutions are small and micro institutions, and the market structure and industry distribution are very scattered. It is extremely difficult for a single enterprise to achieve large-scale breakthroughs based on endogenous growth alone. Looking at the development history of global inspection and testing giants, it can be seen that mergers and acquisitions are the core path to breaking through large-scale bottlenecks.
From international market leaders to domestic leading companies, all without exception are accompanied by continuous investment and mergers and acquisitions. During the 14th Five-Year Plan period, the growth momentum of the inspection and testing industry accelerated from traditional fields to emerging fields and high value-added fields, driving the industry structure from “quantitative change” to “qualitative change”. However, there are significant technical, qualification, and customer barriers between different industries. If enterprises want to quickly enter a new field, expand their service radius, and stimulate performance growth, mergers and acquisitions are the most efficient means.
JIT is well aware of this. The company, formerly known as Changzhou Institute of Building Research, landed on GEM in 2022 and officially changed its name to “Joint Inspection Technology” in 2025. The company established a three-dimensional merger and acquisition strategy of “regional penetration+track expansion+qualification reinforcement”, giving priority to regional leaders, policy-driven high-growth tracks and targets with scarce qualifications. The acquisition of China Water Huaying is yet another step forward in implementing this strategic logic.
The target profit quality can be used as a basis to enter a policy-driven high prosperity circuit
The target company, Zhongshui Huaying, mainly relies on CSSC to carry out actual business activities, so the real value carrier of this acquisition is CNOOC.
Judging from industry trends, new energy testing is currently one of the fastest growing segments in the testing industry. The scale of the domestic inspection and testing industry is close to 500 billion yuan, and emerging testing tracks such as new energy, electronic semiconductors, new materials, and life sciences are growing significantly faster than traditional inspection fields.
China Water Guoxin focuses on professional testing technology services in new energy fields such as wind power, photovoltaics, and energy storage. Its core business covers technical services such as new energy grid-related testing, grid-connected field testing, simulation modeling, etc., and fully covers application scenarios such as photovoltaic power plants, wind farms, energy storage power plants, etc., and has deeply benefited from the dual policy dividends of the implementation of the national energy transformation strategy and continued tightening of power system safety supervision, and the industry's growth is certain.
China Water Guoxin has core qualifications such as CNAS, CMA, and installation (repair and testing) power facility licenses, which can fully meet compliance testing requirements such as grid acceptance and parameter review of new energy stations. The business layout has covered South China, Southwest China, North China and other regions, and the national service network continues to improve.
At the management level, relying on the policy dividends of the new power system industry and the incremental opportunities of the new energy grid inspection and expansion, combined with its own nationalized network layout, high barrier inspection qualification system, and deeply bound high-quality and stable customer resources, China Water Guoxin's future growth space and profitability is supported.
In 2025, China Water Guoxin achieved operating income of 29.1952 million yuan, achieved net profit of 6.603 million yuan, and strong profitability; the top five customers accounted for 38.28% in 2025, and has established stable cooperative relationships with mainstream power generation central enterprises such as Huaneng, Huadian, Datang, China Energy Group, and CGN. The customer structure has been diversified, and market expansion capabilities and core competitiveness have been steadily enhanced.
In recent years, JIT has continued to upgrade its business to high-growth fields such as new energy, advanced manufacturing, and life sciences. In 2025, net profit to mother increased 30% year-on-year, and gross margin rebounded to 36.27%. The acquisition follows this trend, boosts its revenue and profits in the field of new energy power testing, and opens up room for long-term growth for the company.
The acquisition will help JIU enter the grid-related testing and simulation modeling industry segmentation circuit where new energy is connected to the grid, form strategic collaboration with existing new energy businesses, improve the industrial layout, and promote iteration of the business structure from product-side inspection to “product-side plus grid side” to comprehensively enhance business value.
Multiple mechanisms to properly protect the value of mergers and acquisitions
Based on a long-standing steady business philosophy, JIT has sufficient bank reserves. Cash assets on book reached 1,147 billion yuan at the end of the first quarter of 2026, providing sufficient financial guarantees for subsequent business integration and resource investment.
On the other hand, the transaction set up multiple guarantee mechanisms in terms of risk control, reflecting JIT's mature experience and prudent attitude in the field of mergers and acquisitions.
Performance commitment and compensation: The transferor promised that during the 2026 to 2028 performance commitment period, CSSIC's net profit targets were 10 million yuan, 14 million yuan, and 21 million yuan respectively, and the cumulative net profit targets after deduction were 10 million yuan, 24 million yuan, and 45 million yuan respectively.
Referring to the net profit level of 6.603 million yuan in 2025, the level of this performance commitment not only gave the target company reasonable growth expectations, but also reflected the strategic value of this acquisition.
Although the acquisition announcement disclosed a number of provisions relating to performance compensation, in fact, the most critical one is “if the net profit after deduction achieved during the performance commitment period is less than the net profit after deducted after the cumulative commitment period, Party B shall provide performance compensation for the portion of net profit after deduction that has not been achieved.” This compensation clause is equivalent to directly locking in the overall economic benefits of the target company's performance commitment period, which fundamentally protects the economic interests of the listed company and also isolates the risks affecting the interests of external small and medium-sized investors.
Accounts receivable assessment: The transaction also set up a accounts receivable assessment mechanism. During the performance commitment period, CSSIC's accounts receivable turnover rate of less than 1.60 in each year triggers compensation. This also reflects the importance JISC has always attached to steady operation and cash flow quality. The testing industry often has problems with long repayment cycles, and including accounts receivable in the assessment helps prevent potential credit risks.
Post-investment management and risk control: On the business side, Joint Inspection Technology will rely on listed company platforms to provide comprehensive brand, governance, and financing capabilities, and utilize the complementary advantages of listed companies and CIMC in terms of technology, business, customer resources, etc., to promote resource integration, exert synergy effects, and improve resource allocation efficiency.
On the management side, the transaction also introduced an employee follow-up investment and secondary acquisition mechanism. Within 3 months after completion of the transaction, the company will promote the CSSC employee stock ownership plan in the form of a capital increase according to actual business needs. Employee follow-up investment deeply binds the interests of the core team to the company's long-term development, which is conducive to safeguarding the stability of the target company's core team and reducing the risk of talent loss after the merger and acquisition. The secondary acquisition mechanism leaves room for further system integration.
Overall, JIT effectively empowers acquired enterprises through advantages in capital, brand, customer resources, management experience, etc., while ensuring the stability of their core team and striving to achieve a “1+1>2” synergy effect. Strong post-investment management is one of JIT's core competencies. This capability has been verified in many previous mergers and acquisitions, and will play a positive role in the integration of CSSC Guoxin in the future.