(Yicai) March 25 -- Iecho Science and Technology, a Chinese intelligent cutting solutions provider for the non-metals industry, plans to invest EUR3.7 million (USD4 million) to acquire a German peer as part of its long-term development strategy.

Iecho's subsidiary Iecho Asia will buy Aristo Cutting Solutions from Bochmann Holding, the Hangzhou-based firm announced yesterday. The move makes way for the parent company's product extension and technology enhancement in intelligent cutting, it added.

Acquiring Aristo will broaden Iecho's product lineup, enhance core competitiveness, and is strategically important to the company’s business growth, it noted. Overseas revenue has accounted for an increasing share of Iecho's total income in recent years, reaching around half, the firm noted. 

Shares of Iecho [SHA: 688092] sank 4.5 percent to CNY31.34 (USD4.35) apiece today. The benchmark Shanghai Composite Index retreated 0.7 percent.

Established in 1862, Hamburg-based Aristo mainly produced and sold high-precision measuring gear early on. It then became Germany's leading maker of large-format flatbed cutters for computer-aided design and manufacturing processing of stiff or pliable materials, according to the firm’s website.

Net profit at Iecho surged 67 percent to CNY75.8 million (USD10.5 million) in 2023 from the previous year, the firm's latest earnings report showed. Revenue jumped 29 percent to CNY384 million (USD53.1 million). Its products are sold in more than 100 countries and regions.

Editor: Martin Kadiev