Transaction of 780 million yuan! Jiashan Court disposes of the main assets of a bankrupt enterprise in Jiaxing (including a lighting company) | OSRAM's revenue for fiscal year 2020 was 3.039 billion euros

Jiashan, Zhejiang:

Auction of assets of bankrupt enterprise for 780 million

Jiashan, Zhejiang:

Auction of assets of bankrupt enterprise for 780 million yuan

Recently, the Jiashan County People's Court of Zhejiang Province successfully disposed of the main assets of Jiaxing's largest foreign-related bankruptcy enterprise , namely Zhejiang Risen Solar Energy Co., Ltd., Zhejiang Risen Intelligent System Integration Co., Ltd., and Zhejiang Risen Lighting Energy Saving Technology Co., Ltd. (hereinafter referred to as the three Risen companies). The asset auction transaction amount reached 780 million yuan, setting a record for the highest transaction price in bankruptcy asset auctions in the Jiaxing area. It effectively released more than 450 mu of land resources and disposed of factory buildings with an area of over 200,000 square meters .

Due to the large volume and high value of the main assets of Yuhui's three companies, as well as their significant locational advantages, the Jiashan Court guided the administrator to formulate a bankruptcy property disposal plan based on the current status and structural characteristics of the assets. The court publicly solicited opinions from all creditors via an online platform regarding this plan, fully safeguarding the creditors' right to know and right to participate.

It was finalized that the main assets of Yuhui's three companies would be split into two asset packages (Asset Package 1: real estate, machinery and equipment, intellectual property rights, pollution discharge rights, etc. related to Plant 6; Asset Package 2: real estate, machinery and equipment, etc. related to Plants 1–4), and a public auction would be conducted on Taobao's judicial auction platform with the starting bid set at the appraised value without any reduction. On October 20, 2020, the aforementioned assets were sold in the first auction on Taobao, and the full auction proceeds were received by the 29th of the same month.

According to the information, Zhejiang Risen Solar Energy Co., Ltd. is a purely foreign-oriented enterprise with a registered capital of US$550 million and 16 subsidiaries. It is one of the few large-scale solar energy groups in the global photovoltaic industry capable of vertically integrated operations ranging from polysilicon to photovoltaic power generation systems.

and Zhejiang Yuhui Lighting Energy Saving Technology Co., Ltd. is a wholly-owned subsidiary of the former photovoltaic industry leader Zhejiang Yuhui Sunshine Energy Co., Ltd., located in Jiashan County, Jiaxing City, Zhejiang Province. Its business scope includes technical R&D, consulting, services, and transfer in the fields of lighting energy saving, information technology, smart technology, system integration, computer software and hardware, data processing, solar energy, electronic technology, and energy conservation and environmental protection; investment, development, and operation management of solar power stations; energy performance contracting (EPC / EMC) services; import and export of goods and technologies; sales of electrical appliances, luminaires and decorative lighting, wires and cables, environmental protection equipment, smart equipment, photovoltaic materials, automobiles, and LED; sales and design of lighting equipment.

On December 8, 2019, the Jiashan County People's Court accepted the bankruptcy liquidation case of Zhejiang Risen Solar Energy Co., Ltd. upon the application of Anyang Jinshenghao New Materials Co., Ltd., Jiaxing Zhuoer Precision Machinery Co., Ltd., and Zhejiang Risen Solar Energy Co., Ltd. On May 6, 2020, the Jiashan County People's Court accepted the bankruptcy liquidation cases of Zhejiang Risen Lighting Energy Saving Technology Co., Ltd. and Zhejiang Risen Intelligent System Integration Co., Ltd. respectively, upon their applications. Due to the affiliated relationships between these two companies and Zhejiang Risen Solar Energy Co., Ltd., Zhejiang Dianjin Law Firm and Zhejiang Tianyu Certified Public Accountants Co., Ltd. were jointly appointed as administrators.

Given that all three companies have ceased production and operations, they have a large amount of matured debts that remain unpaid. Meanwhile, audits have confirmed that all three companies are seriously insolvent, with no obstacles to declaring bankruptcy. Therefore, on September 5, 2020, the Jiashan County People's Court ruled to declare Zhejiang Risen Solar Energy Co., Ltd., Zhejiang Risen Lighting Energy Saving Technology Co., Ltd., and Zhejiang Risen Intelligent System Integration Co., Ltd. bankrupt.

OSRAM 2020 Financial Report:

Achieved revenue of €3.039 billion

OSRAM 2020 Financial Report: Achieved Revenue of €3.039 billion

OSRAM released its financial report for the fourth quarter of 2020 and the full year 2020 (October 2019 to September 2020). The report shows that OSRAM achieved revenue of EUR 3.039 billion (approximately RMB 23.867 billion) in fiscal year 2020. Despite a comparable decline of nearly 14% , the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin remained flat compared to the previous fiscal year, stabilizing at a level above 8% . Meanwhile , it achieved a positive free cash flow of EUR 12 million.

Despite the impact of the pandemic, OSRAM achieved stable development in the past fiscal year thanks to effective management measures. Olaf Berlien, CEO of OSRAM, stated: "We acted with foresight and timeliness, implementing effective measures to minimize the impact of the pandemic on our employees and production. The results are clear: we generated a positive free cash flow of €12 million in the last fiscal year, of which we are very proud." The final financial results show that revenue declined due to the pandemic, transformation costs, and depreciation related to the joint venture with Continental . At this stage, various management measures are proceeding as planned. The Board confirmed the forecast for the new fiscal year released at the end of September, expecting a comparable Revenue growth rate of approximately 6% to 10% for fiscal year 2021.

According to the data, OSRAM's product portfolio optimization measures for its optoelectronic semiconductor business (OS) have had a positive impact. Due to the pandemic, the revenue of this business segment was €1.34 billion, a year-on-year decrease of approximately 9%, while the adjusted EBITDA margin rose to over 20%. Currently, orders for the semiconductor business are growing steadily.

In the special circumstances affected by the pandemic this year, Automotive (AM) saw total revenue decline by 14% to €1.59 billion, with adjusted EBITDA of approximately €76 million and a margin of around 5%. This performance was also impacted by the results of the OSRAM Continental joint venture. In the future, the related business of the joint venture will be reintegrated into the parent company, which is expected to enhance the profitability of the Automotive business.

As another important business segment of OSRAM, Digital Business (DI) was more severely impacted by the pandemic, with revenue falling by one-fifth to €742 million, and adjusted EBITDA at -€28 million.

Achieved gratifying progress in the fourth quarter

OSRAM's two major business pillars, namely the Opto Semiconductors business and the Automotive business, showed improved performance in the fourth quarter of fiscal year 2020, with both achieving higher profitability. The adjusted EBITDA margin of the Opto Semiconductors business even reached 22%. Meanwhile, the automotive market has shown a significant recovery, which is of great importance to OSRAM. Over the past several months, OSRAM's overall performance in key markets has improved substantially.

OSRAM expects comparable Revenue growth of approximately 6% to 10% in fiscal year 2021, with an adjusted EBITDA margin of around 9% to 11%. Free cash flow is expected to remain broadly stable, staying above the ten million euro level. These forecasts are based on the assumption that the COVID-19 pandemic crisis will be successfully navigated in 2021. Therefore, any economic impacts resulting from a deterioration in the COVID-19 situation are not reflected in the above forecasts.

Source: Jiashan Court, OSRAM China