Industry Shock! MLS Splashes 256 Million Yuan to Restart Strategic Acquisition!

On July 5, MLS Co., Ltd. (stock abbreviation: MLS, stock code: 002745) released the "Announcement on External Investment and Equity Purchase". The acquisition action by its subsidiary LEDVANCE GmbH instantly became the focus of the industry.

According to the announcement, LEDVANCE GmbHplans to useself-owned funds or self-raised funds of 256 million yuan to purchase the 18.7722% stake in Bridgelux (Xiamen) Co., Ltd. held by Epistar JV Holding (BVI) Co., Ltd., corresponding to 56,316,532 shares. After the completion of this transaction, the equity ratio of MLS's subsidiary LEDVANCE GmbH in Bridgelux will increase significantly, successfully becoming the third largest shareholder of Bridgelux.

Exploringthe potential logic behind Epistargiving up its equity

Epistar JV Holding (BVI) Co., Ltd. has chosen to relinquish its equity stake in Bridgelux, possibly due to multi-dimensional considerations.

From a corporate strategy perspective, its business focus may shift towards core areas with greater advantages, such as focusing on upstream high-barrier segments like wafer manufacturing and high-end chip R&D. Divesting equity in the lighting supply chain can free up capital for investment, aligning with the needs for strategic contraction and focus.

From a financial perspective, the transaction consideration of 256 million yuan allows for asset appreciation and cash-out, optimizing its own asset-liability structure and reserving funds for other high-return projects.

From the perspective of industrial synergy, the synergistic value of the early investment in Bridgelux has gradually weakened with industry development, reducing its strategic significance for continued shareholding. Transferring it to companies like MLS that can achieve deep synergy allows for better allocation of industrial resources, which may be the key reason for relinquishing the equity.

Bridgelux: A leader in the LED field

Bridgelux was established in 2011, originally named Kaifajing Lighting (Xiamen) Co., Ltd. In the LED industry, Bridgelux holds a high position as a leading enterprise in the LED patented devices sector and is also an important member of the semiconductor power device supply chain.

Bridgelux has a wide business scope, covering the R&D, manufacturing, and sales of products such as LED epitaxy chips, packaging, phosphor, power devices, and lighting modules. Notably, it possesses upstream and downstream collaborative R&D capabilities, providing customers with optimal solutions. It also owns two internationally renowned LED brands, "Bridgelux" and "Intematix", having certain brand influence in the international market. In the first quarter of 2025, Bridgelux achieved revenue of approximately 448 million yuan, with a net profit of about 11.036 million yuan, showing strong development momentum.

MLS: Full Industry Chain Layout and Acquisition Significance

MLS Co., Ltd. was founded in 1997 and went public on the Shenzhen Stock Exchange in 2015. It is a leading Chinese enterprise in LED packaging and lighting applications, and one of the world's largest LED lighting manufacturers. The company has built a full industry chain layout from LED packaging to lighting applications, with products covering smart lighting, horticultural lighting, industrial lighting, and other fields, committed to providing efficient, energy-saving, and environmentally friendly lighting products and professional solutions for the global market.

This acquisition of equity in Bridgelux by MLS through its subsidiary has profound strategic significance. At the technical level, it deepens technological synergy with Bridgelux, integrates the technical advantages of both parties, and enhances product technology content; in terms of industry chain integration, it achieves resource sharing and complementary advantages, optimizes the industry chain structure, improves production efficiency, and reduces costs; it can also significantly enhance the market competitiveness of MLS products, laying the foundation for sustainable development, with a positive impact on comprehensive competitiveness in the long run.

It is worth noting that prior to the acquisition, MLS was already the fourth-largest shareholder of Sanan Optoelectronics, holding a 17.3369% equity stake. Upon completion of the transaction, combined with the 18.7722% stake held by LEDVANCE GmbH, MLS holds a total of 36.1091% equity in Sanan Optoelectronics, surpassing the largest shareholder, Wuxi Guolian Industrial Investment Group Co., Ltd., which holds 30.1294%, significantly enhancing its voice and influence.

Market focus: promising future development

As of July 7, MLS's stock price closed at 7.91 yuan per share, with a total market capitalization of 11.74 billion yuan. In recent years, MLS has deepened its expansion of two core businesses, "Brand Lighting" and "LED Intelligent Manufacturing," around its lighting ecosystem, with product lines covering home, commercial, industrial, and outdoor lighting.

This acquisition of equity in Sanan Optoelectronics is another major step in MLS's full industry chain layout. With deeper integration with Sanan Optoelectronics in technology, markets, and other areas, MLS is expected to further consolidate its leading position in the LED lighting sector and expand its industry influence. It remains to be seen what changes this acquisition will bring to the lighting industry and how MLS will achieve new breakthroughs through this acquisition!