4.83 Billion Yuan Deal Reshapes Karen Shares Ownership Structure and Control

In a major strategic move, Karen Shares announced on the evening of April 2 its intent to acquire a 51% stake in Suzhou Jiazhicai Optoelectronics Technology Co., Ltd. through a cash transaction totaling 4.83 billion yuan. This significant investment qualifies as a related-party transaction and will fundamentally shift the company’s ownership landscape.

Upon completion of the acquisition, Karen Shares will officially become the controlling shareholder of Jiazhicai, marking a decisive step into the high-growth optoelectronics sector. In a related development, over 53.63 million shares of Karen will be transferred via agreement from current stakeholders Karen Holdings, Qian Lindie, and Lvrong Investment to Xicai Optoelectronics and Mr. Chen Xianfeng, the legal representative of Jiazhicai.

The transfer involves 34.13 million shares (9.22% stake) going to Xicai and 19.5 million shares (5.27% stake) to Mr. Chen. This shift will result in both becoming major shareholders of Karen Shares, introducing new influence and leadership into the company.

To safeguard the investment, the transaction includes performance guarantees. Jiazhicai is expected to deliver net profits—after excluding non-recurring items—of no less than 55 million yuan in 2025, 75 million yuan in 2026, and 110 million yuan in 2027. However, these targets come with inherent uncertainty and execution risks.

This high-stakes maneuver not only boosts Karen’s footprint in the optoelectronics space but also triggers a major capital and leadership reconfiguration that could reshape its future trajectory.