Latest! Two major M&A deals involving LED-related companies!

News of M&A and restructuring in A-shares continues.

133 million yuan! Shenghui Technology subsidiary sells equity assets! Previously dragged down by Country Garden…

On the evening of November 20, Shenghui Technology (300423) released an announcement regarding the sale of equity assets by its controlling subsidiary.

The announcement stated that the company held a board meeting on November 19, 2024, and approved the "Proposal on the Sale of Equity Assets by the Controlling Subsidiary," agreeing that the controlling subsidiary, Shenghui Holdings Co., Ltd. (hereinafter referred to as "Shenghui Holdings"), would sell its 100% equity interest in Shanghai Jiuyi Investment Management Co., Ltd. (hereinafter referred to as "Shanghai Jiuyi") to the company's supplier, Tianmen Lekebang Lighting Co., Ltd. (hereinafter referred to as "Lekebang"). The equity transaction price was 132.6769 million yuan, and Lekebang agreed to repay debts amounting to 45.8231 million yuan on behalf of Shanghai Jiuyi to Shenghui Holdings.

据公告，乐可邦的经营范围为，生产、销售：照明灯具、灯具配件、半导体发光二极管灯具、半导体发光二极管灯具配件、电子元器件、高低压电气成套设备、五金制品、机电设备、五金建材、装饰材料及产品的技术研发、安装、设计、咨询服务；建筑及景观照明工程设计、施工；建筑智能化系统工程的设计、施工等。

Lekebang Financial Data

标的公司上海九嶷成立于2011年5年16日，业务包括投资管理、企业管理咨询、商务信息咨询、企业形象策划、图文制作、酒店管理、自有房屋租赁、停车场管理等。2023年度、2024年1~9月公司实现营业收入564.87万元、378.66万元；净利润分别为66.96万元、29.37万元。

The announcement stated that, to prevent credit risks in accounts receivable arising from adjustments in the real estate market and to reduce bad debt losses on accounts receivable, the company's controlling subsidiary, Shenghui Holdings, acquired equity in the target company through debt restructuring. This sale of equity assets was a decision made in accordance with the company's strategic planning and future development needs. This property-for-payment arrangement proceeds from the overall interests of the company, helps revitalize company assets, improves the company's financial position, and alleviates the current cash repayment pressure on the subsidiary to some extent, having a relatively positive impact on the company's current and future financial status and operating results.

The impact of this asset sale on the company's financial statements is expected to increase current assets by 36.7641 million yuan, decrease accounts payable by 95.9128 million yuan, decrease non-current assets by 83.7340 million yuan, and increase investment income by 48.9429 million yuan.

According to reviews, on January 8, 2024, since Country Garden and its controlled enterprises were unable to settle the construction payments owed to Shenghui Holdings in cash, and to reduce the risk of bad debt losses on accounts receivable, after mutual agreement and considering the actual condition of the offsetting assets and current market price standards, Shenghui Holdings acquired a 95% equity interest in Shanghai Jiuyi held by Shanghai Xinbi Enterprise Management Co., Ltd. and a 5% equity interest in Shanghai Jiuyi held by Shanghai Xuanbi Real Estate Development Co., Ltd. through a combination of cash payment and debt-offsetting via accounts receivable. Both companies are subsidiaries controlled by Country Garden Group. The equity transaction price was 156.8731 million yuan, offset against the creditor-debtor relationship between Country Garden and Shenghui Holdings, while Shenghui Holdings agreed to repay 49.55 million yuan of debt on behalf of the target company. According to the "Asset Appraisal Report" issued by Shenzhen Yitong Asset Appraisal Real Estate Land Valuation Co., Ltd., with the valuation base date of September 30, 2023, the assessed value of shareholders' equity of Shanghai Jiuyi Investment Management Co., Ltd. on this valuation base date was 83.7340 million yuan, evaluated using the asset-based approach. Through this transaction, Shenghui Holdings holds 100% equity in Shanghai Jiuyi.

Tianyancha information shows that Shenghui Intelligent Technology Co., Ltd. was established in 2003 and is located in Yantai City, Shandong Province. It is an enterprise mainly engaged in electrical complete sets of equipment, LED lighting and brightening, smart cities, and hydrogen energy. The company's registered capital is 498 million yuan, and the legal representative is Ji Faqing.

In terms of performance, according to Shenghui Technology's third-quarter report for 2024, the company achieved total operating revenue of 1.056 billion yuan in the first three quarters of this year, a Year-on-year (YoY) decrease of 40.97%; Net profit attributable to shareholders of the parent company was 16.2816 million yuan, turning from loss to profit Year-on-year (YoY).

The third-quarter report shows that the company's total liabilities were RMB 1.884 billion, an increase of 19.08% year-on-year, including accounts payable of RMB 1.021 billion. The company's asset-liability ratio was 55.97%, with total shareholders' equity of RMB 1.482 billion.

Goodix Technology plans to acquire unicorn enterprise Yunyinggu, which has received investments from Xiaomi and Huawei

On the evening of January 22, Goodix Technology (SH603160, stock price 81.80 yuan, market capitalization 37.486 billion yuan) announced that the company is planning to acquire control of Yunyinggu Technology Co., Ltd. (hereinafter referred to as "Yunyinggu") by issuing shares and paying cash, and at the same time, the company plans to issue shares to raise matching funds.

Upon the company's application, Goodix Technology's stock will be suspended from trading starting from the market opening on November 25, 2024, with an expected suspension period of no more than 10 trading days.

According to information, Yunyinggu specializes in the R&D, design, and sales of OLED display driver ICs. Its main products include AMOLED display driver ICs and Micro OLED silicon-based display driver backplane ICs. Among them, the company's AMOLED display driver ICs are mainly used in smartphones, while Micro OLED silicon-based display driver backplane ICs are primarily used in smart head-mounted devices such as VR/AR.

The announcement shows that the main counterparties in this transaction are Gu Jing, Shenzhen Yishi No. 1 Enterprise Management Center (Limited Partnership) (hereinafter referred to as Yishi No. 1), Shenzhen Yisheng No. 1 Enterprise Management Center (Limited Partnership), and Shenzhen Yisheng No. 2 Enterprise Management Center (Limited Partnership) (hereinafter referred to as Yisheng No. 2). The final counterparties are still subject to negotiation and determination.

According to the "2024 Hurun Global Unicorn List" released on April 9, 2024, Yunyinggu was included in the list with a corporate valuation of 8.5 billion yuan, ranking 976th.

Yunyinggu was established in May 2012. Since its establishment, it has undergone multiple rounds of financing. Shareholders include Hubei Xiaomi Yangtze River Industry Fund Partnership (Limited Partnership), BOE A (SZ000725, stock price 4.24 yuan, market value 159.6 billion yuan), Qualcomm (China) Holdings Co., Ltd., and others. According to a message from the aforementioned WeChat official account on September 2, Yunyinggu recently completed a new round of capital increase, jointly invested by Vertex Ventures and Chengdu Ceyuan. After this round of capital increase, Yunyinggu has more than 1 billion yuan in capital reserves to cope with rapid performance growth and industry cycles. Yunyinggu expects to ship 55 million to 60 million OLED driver ICs for brand mobile phones in 2024.

Goodix Technology announced that, based on preliminary calculations, this transaction is not expected to constitute a major asset restructuring as stipulated in the "Administrative Measures for Major Asset Restructuring of Listed Companies". As of now, this transaction is in the planning stage, the parties have not yet signed a formal transaction agreement, the specific transaction plan is still under discussion and demonstration, and there is still uncertainty.