Yesterday, Hongli Optoelectronics signed an equity transfer agreement and a performance commitment agreement with four shareholders of Smed. The 100% equity of Smed was completed within one month from the date of signing the agreement.
Smed is a domestic white light packaging company for LED lighting. In the future, it will expand production capacity, increase market share, and increase packaging products for TV backlights and small and medium-sized backlight applications. From January to June this year, Smed's operating income was 138 million yuan, with a net profit of 14.2094 million yuan; the owner's equity attributable to the parent company was 53.4344 million yuan.
Among the four original shareholders of Simed, general manager Li Jundong and deputy general managers Liu Wenjun and Zhang Mingwu remitted 55.65% (approximately 26.9787 million yuan) of the proceeds from the equity transfer to Hongli Optoelectronics into the supervision account, all of which were used to subscribe for shares of Hongli Optoelectronics in the secondary market. 50% can be unlocked from the date of the issuance of the audit reports of Simed in 2015 and 2016 respectively.
Although Hongli Optoelectronics is the leader in domestic white light LED packaging, it is currently not involved in the research and development, production and sales of LED EMC bracket products. If it develops on its own, it will miss the market opportunity of popularizing LED lighting. Smed has established a relatively complete EMC series product production line including EMC brackets, and is a rapidly rising star in the LED packaging industry.
Through this transaction, Hongli Optoelectronics not only obtained the high-quality assets of Smed, but also incorporated Smed’s management team into the listed company, which is conducive to the long-term sustainable development of the listed company. Smart Optoelectronics complements Hongli Optoelectronics in many aspects such as customers and sales channels. The two parties will deeply integrate in technology, market, management, finance and other aspects to exert synergy.
Hongli Optoelectronics believes that this acquisition will further expand the company's business scale and create new profit growth points. The counterparty promised that Smed's audited net profits attributable to shareholders of the parent company after deducting non-recurring gains and losses in 2014, 2015, and 2016 would be no less than 28 million yuan, 32 million yuan, and 35 million yuan respectively. After the completion of this transaction, Hongli Optoelectronics' total assets, operating income, equity and net profit attributable to shareholders of the parent company will be significantly increased.
ANNA