(Yicai) Nov. 21 -- Chinese electric bike maker Youon Technology plans to acquire a majority stake in Chinese smart agriculture firm AllyNav Technology to transition to high-end and new technologies.

Youon is in talks with AllyNav to purchase a 65 percent stake, the Changzhou-based buyer said in a statement yesterday, adding that it will use cash and the proceeds of a private placement to finance the deal.

Founded in 2015, AllyNav develops driverless technologies for agricultural machinery. It is responsible for the large-scale application of China’s Beidou satellite navigation system in the agricultural field. Last year, it applied for an initial public offering in Shanghai but withdrew the application in July.

AllyNav reported a net profit of CNY52.8 million (USD7.3 million) in 2022, up 132 percent from 2021, according to the listing prospectus. Revenue rose 43 percent to CNY315 million (USD43.5 million).

Youon was founded in 2010 as a bike-sharing company but slowly shifted its business focus to electric and hydrogen energy bikes. Since 2018, it has concentrated most of its efforts on hydrogen energy, including acquiring an 88 percent stake in Kaibo Pressure Vessel for CNY167.2 million last year to gain access to hydrogen storage technologies.

The company logged net losses of CNY67.5 million in 2022 and CNY127 million last year. In the first three quarters of this year, its loss totaled CNY29.9 million, with revenue down 9 percent to CNY374 million from a year earlier.

Youon’s shares [SHA: 603776] closed up 3 percent at CNY15.72 (USD2.17) in Shanghai yesterday. They suspended trading today for up to 10 trading days today for reasons related to the AllyNav acquisition.

Editor: Futura Costaglione