Recently, Jiangsu Feymer Technology Co.,Ltd. (SHSE: 688350) has been quite active in the capital markets.
On July 21, Chairman and General Manager Qian Xin purchased 2.8648 million shares of the company through block trades, spending approximately 53.94 million yuan. This transaction accounted for 2.00% of the total share capital. The very next day, on July 22, the board of directors approved a share repurchase plan. The company intends to use its own funds, ranging from 20 million to 40 million yuan, to buy back shares for employee stock ownership plans and to maintain corporate value.
Almost simultaneously, Jiangsu Feymer Technology Co.,Ltd. is also advancing a significant acquisition. The plan is to acquire 51.16% of the equity in Worth-tech, a company listed on the New Third Board, for 696 million yuan. Worth-tech, a national-level specialized "Little Giant" enterprise, posted a net profit of 106 million yuan in 2025 and has committed to a cumulative non-recurring net profit of no less than 360 million yuan over the next three years. With share repurchases, insider buying, and a merger all moving forward together, what signal is Jiangsu Feymer Technology Co.,Ltd. sending?
The Spear and Shield of the Water Treatment Field
Founded in 2010 and listed on the STAR Market in 2021, Jiangsu Feymer Technology Co.,Ltd. is headquartered in Zhangjiagang, Jiangsu Province. The company's business is straightforward: based on its self-produced polymer materials, it offers two core product lines: water-soluble chemicals and solid membrane products. The former handles efficient flocculation at the front end, while the latter provides precision filtration at the back end. Combined with engineering and operations & maintenance services, this covers the entire industrial water treatment process.
The company's product system can be understood through the analogy of a spear and a shield. Water-soluble polymers are the spear. They dissolve in water and actively attack impurities like suspended solids and oil droplets through chemical actions such as flocculation and thickening. Often called "industrial MSG," they are mainly used in industries like pulp and paper, oil and gas extraction, and municipal wastewater treatment. Membrane products are the shield. They form a physical sieve with a solid porous structure, passively intercepting substances like bacteria and salt from the water. These are used in deep treatment scenarios such as pure water preparation and zero liquid discharge. Both product lines originate from the company's self-produced functional monomers, differentiated through various polymerization and processing techniques.
At an industrial water treatment site, the spear (chemicals) handles pretreatment, protecting the shield (membranes) from clogging. The shield then handles deep treatment, achieving purification goals the spear cannot. This integrated capability of "chemicals + membrane products + O&M services" allows Jiangsu Feymer Technology Co.,Ltd. to supply chemicals, execute membrane separation projects, and take on long-term operations, managing the entire industrial water treatment process from start to finish. This perfectly aligns with the company's new strategy: "Making Every Water Footprint More Meaningful."
Small Leader in a Large Arena, Potential Turning Point
From a revenue contribution perspective, Jiangsu Feymer Technology Co.,Ltd.'s water treatment membrane business currently accounts for a small portion and is still in its market development phase. Water-soluble polymers and functional monomers are the main sources of revenue, together contributing over 83% of the total in 2025. Additionally, relying on its own cogeneration and natural gas-to-hydrogen units, the company meets its own production electricity and steam needs. It then sells surplus electricity, heat, and its entire hydrogen output to other enterprises within the industrial park, providing an external energy supply service.
Jiangsu Feymer Technology Co.,Ltd. produces hundreds of types of water-soluble polymers. Based on their monomer composition, they are mainly classified into categories like polyacrylamide (PAM), polydimethyldiallylammonium chloride, polycarboxylic acid, and polyamine. China is the world's largest producer and consumer of water-based chemicals, particularly in the polyacrylamide field. Functional monomers are the key raw materials for preparing these polymers. The company produces four major types of monomers (acrylamide, allyl, special cationic, and membrane-specific monomers), selling them externally while also meeting its own production needs.
The water-based chemicals industry is structured with international giants monopolizing the high end and leading domestic companies dominating the mid-range. Globally, France's SNF is the dominant player with over 45% market share. The top three giants—SNF, Solenis, and Kemira—together hold about 62% of the market. Domestically, the top ten Chinese companies, including New Leaf and Jiangsu Feymer Technology Co.,Ltd., account for 67% of production capacity. Small and medium-sized enterprises are gradually exiting due to environmental and cost pressures, concentrating capacity among the leaders. In terms of functional monomers, Jiangsu Feymer Technology Co.,Ltd. can produce over a dozen types. Its acrylamide products boast a conversion rate and purity exceeding 99.9%. Historical statistics from the National Functional Polymer Industry Committee show the company ranks among the top ten nationally by market share.
Water-soluble polymers are the core revenue source for Jiangsu Feymer Technology Co.,Ltd.. Breaking it down further, cationic polyacrylamide is its most competitive category. Primarily used in municipal wastewater treatment, sludge dewatering, and industrial wastewater treatment, it is one of the fastest-growing categories in the water treatment market, where Jiangsu Feymer Technology Co.,Ltd. ranks among the top. PAM for papermaking is the company's most dominant niche. It held the top domestic market share for two consecutive years in 2018 and 2019. Its clients include leading companies in the domestic paper industry, and the company has led the development of industry standards for emulsion anionic and nonionic PAM. Oil and gas extraction is the second-largest application area for PAM. Jiangsu Feymer Technology Co.,Ltd. has developed salt-tolerant fracturing friction reducers that have entered the emerging shale oil market in Northwest China, securing contracts with PetroChina's Changqing Oilfield and CNOOC. This business is still in its market development phase.
It should be noted that the water-based chemicals industry is not a hot sector, and third-party research coverage is limited. Most available market share data comes from 2018-2020. However, since the competitive landscape is relatively stable, this data can still serve as a reference. Furthermore, Jiangsu Feymer Technology Co.,Ltd. has R&D reserves in areas like lithium extraction nanofiltration membranes and anti-pollution reverse osmosis membranes, with some products having entered the pilot or trial use stage.
The company's recent reality is that while its technological level is decent, its financial performance has been unimpressive. The main reasons are pressure on demand from downstream industries like papermaking, water treatment, and oil and gas extraction; the membrane product business is still in its market development phase; and the company has actively shed low-margin products. This has led to a continuous decline in revenue, which reached 1.39 billion yuan in 2025. The company recorded its first loss since listing in 2024 but turned profitable in 2025, with a net profit attributable to the parent of 15.21 million yuan.
However, positive signals have also appeared. In 2025, the gross margin increased by 4.12 percentage points year-on-year. Revenue from exported chemicals grew by 63.02% year-on-year, and net cash flow from operating activities was an inflow of 245 million yuan. In the first quarter of 2026, revenue was 348 million yuan, up 7.83% year-on-year. Net profit attributable to the parent was 19.07 million yuan, already exceeding the total for the entire year of 2025.
Acquiring Worth-tech: Non-Overlapping Clients, Complementary Tracks
Worth-tech is primarily engaged in the R&D, production, and sale of water treatment chemicals, while also providing customized operational management services. In 2025, it achieved revenue of 474 million yuan and a net profit of 106 million yuan, demonstrating strong profitability. By the end of 2025, Worth-tech had been recognized as a national-level key "Little Giant" enterprise and a national-level specialized and new "Little Giant" enterprise. It holds over 80 authorized patents, including 58 invention patents.
The biggest highlight of this transaction is the complementary client structure. Before this, Jiangsu Feymer Technology Co.,Ltd.'s industrial water treatment business primarily served traditional heavy industry clients like papermaking and petrochemicals. In contrast, Worth-tech's clients are concentrated in emerging industries such as display panels, electronic semiconductors, waste-to-energy renewable energy, and photovoltaics. In 2025, revenue from display panels and semiconductors accounted for over 50% of its total. The client bases of the two companies have almost no overlap. A successful acquisition would directly broaden the industries and customers Jiangsu Feymer Technology Co.,Ltd. can serve.
Worth-tech's commitment to a cumulative non-recurring net profit of no less than 360 million yuan from 2026 to 2028 is also expected to drive a doubling in the scale of Jiangsu Feymer Technology Co.,Ltd.'s industrial water treatment business. However, this transaction still carries uncertainty. As of the announcement date, the final acquisition agreement has not yet been signed. The overall valuation of Worth-tech is 1.36 billion yuan, with an appraisal appreciation rate of 255.39%, which is a significant premium.
The story of Jiangsu Feymer Technology Co.,Ltd. is not complicated. Starting with functional monomers, it branched out into two product lines: water-soluble polymers and membrane products. Using a "chemicals + membranes + O&M" model, it handles industrial water treatment from start to finish. The company's lackluster financial performance in recent years was due to a combination of industry cycle issues and the active divestiture of low-margin businesses. However, it turned profitable in 2025, its net profit for Q1 2026 exceeded the entire year of 2024, and its operating cash flow is improving. After the new controlling shareholder, Yongzhuo Holdings, came in during April 2025, the subsequent share repurchase, insider buying, and acquisition of Worth-tech send a clear signal: to make Jiangsu Feymer Technology Co.,Ltd. bigger. Of course, whether the acquisition can deliver on its synergies and whether Worth-tech can meet its performance commitments remains to be seen over time.