Yingtang Intelligent Control plans to acquire Aixiesheng
Recently, Shenzhen Yingtang Intelligent Control Co., Ltd. (hereinafter referred to as "Yingtang Intelligent Control") announced that it is planning to purchase assets by issuing shares and paying cash, and to raise matching funds. The target asset is Shenzhen Aixiesheng Technology Co., Ltd. (hereinafter referred to as "Aixiesheng"), and the company's stock has been suspended since the market opening on November 15, 2024, with the transaction plan to be disclosed before November 29, 2024.According to the announcement, Yingtang Intelligent Control has collaborated with the main shareholders of Aixiesheng, including Shenzhen Zhongrenhe Consulting Enterprise (Limited Partnership), which holds 47.53%, and the actual controller Liang Pishu, who holds 13.12%. Both parties have signed a letter of intent. The aforementioned shareholders have committed to promoting the sale of shares by other shareholders to help Yingtang Intelligent Control achieve controlling interest in Aixiesheng.Aixiesheng is a professional display chip design company. Relying on core technologies such as display-touch interaction, sensing, image processing, computing, and wireless connectivity, it serves multiple application scenarios including 5G mobile smart terminals, smart homes, and intelligent connected vehicles, covering mainstream display technologies such as LCD, LED, and OLED. In 2022, Aixiesheng's turnover exceeded 800 million RMB.It is reported that Aixiesheng's chip design product line includes several major segments: display touch-all-in-one driver chips, display driver chips, touch driver chips, power management chips, LED drivers, audio, storage, and display control SoCs. Among them, LED row drivers and PWM constant current driver chips can be applied to products such as outdoor advertising screens, conference screens, and large screens for concerts.In addition, Aixiesheng completed its joint-stock reform on July 1, 2022, and was renamed "Shenzhen Aixiesheng Technology Co., Ltd." On September 29 of the same year, the company filed for IPO counseling, but has not yet submitted an IPO application to date.Aixiesheng stated that the company will continue to make efforts in the brand market, especially innovating and researching in areas such as TFT DDIC, TDDI, AMOLED DDIC, touch driver ICs, LED driver ICs, audio power amplifiers, charging management, and lithium battery protection.Yingtang Zhikong's main business includes electronic component distribution, chip design and manufacturing, and software R&D and sales. In recent years, Yingtang Zhikong has continuously deepened its chip business layout. In 2023, it cooperated with Synaptics from the United States to obtain the franchise rights for DDIC and TDDI products in the automotive display field, officially entering the automotive display market. Currently, Yingtang Zhikong's automotive display DDIC products have been mass-produced and delivered, and TDDI products are expected to achieve mass production within the year.In the first three quarters of this year, Yingtang Intelligent Control achieved revenue of RMB 4.017 billion, a Year-on-year (YoY) increase of 11.27%, and net profit attributable to shareholders of the parent company of RMB 46.2774 million, a Year-on-year (YoY) increase of 19.57%. Currently, the distribution business accounts for 90% of the company's revenue, while the semiconductor business accounts for nearly 10%.This Acquisition is expected to enhance Yingtang Intelligent Control's competitiveness in the chip sector. Aisesheng's expertise in chip technology and product lines complements Yingtang Intelligent Control's existing business. The integration of both parties is expected to optimize the company's revenue structure, stabilizing the distribution business while increasing the proportion of the semiconductor business. However, the announcement also mentioned that specific plans still require further negotiation, and whether they can proceed smoothly remains to be seen.It is worth mentioning that this Acquisition is not Yingtang Intelligent Control's first move to strengthen its display chip business. As early as the first half of 2024, Yingtang Intelligent Control promoted technological innovation and enhanced product competitiveness by acquiring Dahe Technology, which focuses on the automotive display field, accumulating experience for this Acquisition.Jingrui Electronic Materials plans to acquire 76.1% equity of Hubei Jingrui
On the evening of November 18, Jingrui Electronic Materials (300655) released a restructuring plan, proposing to acquire a 76.0951% equity stake in Jingrui (Hubei) Microelectronics Material Co., Ltd. through share issuance.
The target company, Hubei Jingrui, is primarily engaged in the R&D, production, and sales of high-purity chemicals. Its main products include high-purity hydrogen peroxide, high-purity ammonia water, high-purity nitric acid, and high-purity hydrochloric acid. High-purity chemicals are mainly used in semiconductor manufacturing processes such as cleaning, photolithography, development, and etching. Since its establishment in 2019, Hubei Jingrui has also been committed to laying out electronic-grade hydrogen peroxide, electronic-grade ammonia water, electronic materials for semiconductors and panel displays, and ultra-clean high-purity reagent materials for the LED industry.Prior to the acquisition, Jingrui Electronic Materials currently holds a 23.9049% equity stake in the target company, Hubei Jingrui. The remaining 76.0951% equity is held by shareholders including Hubei Changjiang (Qianjiang) Industrial Investment Fund Partnership (Limited Partnership), National Integrated Circuit Industry Investment Fund Phase II Co., Ltd., Xiamen Minnan Hongsheng Sci-Tech Innovation Fund Partnership (Limited Partnership), and Shenzhen Guoxin Yihe Emerging Industry Private Equity Investment Fund Partnership (Limited Partnership).
The restructuring plan involves Jingrui Electronic Materials issuing shares to Qianjiang Fund, Big Fund Phase II, Guoxin Yihe, and Xiamen Minnan to purchase their 76.0951% equity stake in Hubei Jingrui. The issue price of the shares is 7.39 yuan per share. Upon completion of the transaction, the listed company will hold 100% of the equity in the target company.Data shows that Hubei Jingrui's revenue in 2022 and 2023 was 8.2213 million yuan and 87.6093 million yuan, respectively, with net profit attributable to shareholders of -22.2799 million yuan and -39.3293 million yuan, respectively. In the first half of this year, revenue was 72.83 million yuan, and net profit attributable to shareholders was -14.2785 million yuan.The announcement pointed out that due to the short production time of Hubei Jingrui, it is still in the stage of ramping up production capacity, with production capacity not fully released and high unit fixed costs, resulting in losses for the target company in 2022, 2023, and the first half of 2024. It is expected that as production capacity is gradually released in the future, Hubei Jingrui will gradually become profitable.It is reported that the target company, Hubei Jingrui, has laid out products such as high-purity hydrogen peroxide and high-purity ammonia water in the field of semiconductor materials, with product quality reaching the highest SEMI G5 level. The content of metal impurities is lower than 10ppt, which can basically solve the localized supply of high-purity chemicals, a major category of chip manufacturing materials, achieving the localization and domestication of key semiconductor materials, providing support for building a high-end semiconductor supply chain. The main products already in production have been purchased by well-known domestic semiconductor customers such as Changxin Memory Technologies.Jingrui Electronic Materials is a platform-type high-tech enterprise for electronic materials, focusing on two directions: pan-semiconductor materials and new energy materials. Its main products include high-purity chemicals, photoresists and supporting reagents, functional materials, lithium battery materials, etc., which are widely used in semiconductor, panel display, LED and other pan-semiconductor fields, as well as new energy industries such as lithium batteries and solar photovoltaic.Among them, high-purity chemicals are also known as wet electronic chemicals, which are key chemical materials in the electronics industry, mainly used in cleaning, etching and other process links of electronic information products such as semiconductors, photovoltaic solar cells, LED and flat panel displays. Their quality directly affects the yield, electrical performance and reliability of electronic products, and has a significant impact on the industrialization of electronic material manufacturing technology.In terms of customers, Jingrui Electronic Materials' business covers multiple core areas. Major customers include SMIC, Huahong Grace, Yangtze Memory Technologies, Changxin Memory Technologies, Nexchip Integration, etc. in the semiconductor industry; Samsung SDI, CALB, Cnano Technology, etc. in the lithium battery industry; Truly in the flat panel display industry; and well-known enterprises such as Sanan Optoelectronics in the LED industry.Jingrui Electronic Materials stated that prior to this transaction, Hubei Jingrui was a subsidiary controlled by the listed company, deeply engaged in the high-purity chemicals business. This transaction will help strengthen control over Hubei Jingrui, increase high-purity chemical production, further enhance the core competitiveness of the listed company, fully leverage the listed company platform to support Hubei Jingrui's business development, and improve the listed company's profitability and shareholder returns.Source: LEDinside, Securities Times · e Company
