In the 2020 annual report, Woge Optoelectronics, which is mainly engaged in optoelectronic glass processing and optical device production, mentioned that the company's business plan will focus on realizing the transformation of the main business from precision processing to productization, and further improving the company's industrial chain.
In order to achieve this goal, from April this year to the present, Vogel Optoelectronics has launched the "buy, buy, buy" mode.
An announcement issued by Woge Optoelectronics on the evening of July 15th showed that the company plans to invest 25 million yuan in cash to subscribe for an additional registered capital of 6.25 million yuan in Dongguan Xingwei Electronic Technology Co., Ltd. (hereinafter referred to as "Xingwei Technology"), and will hold 20% of the equity after the capital increase. At the same time, Woge Optoelectronics also plans to acquire 40% of the equity of Xingwei Technology held by Shenyang Xiaoxing Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as the "transferor") for 50 million yuan in cash. In total, Woge Optoelectronics will hold 60% of the equity of Xingwei Technology.
Xingwei Technology and Woge Optoelectronics are both in the middle reaches of the optoelectronic display industry chain. Their main products are optoelectronic display touch
Screens and membrane switches are applied in vehicle-mounted display products, security displays, industrial control, smart homes, etc., with vehicle-mounted display products being the mainstay. In 2020, Xingwei Technology achieved revenue of 128 million yuan and net profit of 4.3127 million yuan.
According to Woge Optoelectronics, Xingwei Technology has a rich accumulation of brand customer service resources, has established long-term, stable, and close cooperative relationships with many brand customers, and is able to fully understand customer needs and have the ability to respond quickly.
The announcement shows that there is a gambling agreement in the acquisition of Xingwei Technology. The transferor must promise that Xingwei Technology’s audited net profit after deducting extraordinary gains and losses in 2021, 2022, and 2023 will be no less than 12.5 million yuan, 15 million yuan, and 17.5 million yuan respectively.
If this capital increase and acquisition are completed, Xingwei Technology will become a holding subsidiary of Woge Optoelectronics and be included in the scope of consolidated statements.
Woge Optoelectronics stated that the products produced by Xingwei Technology and the company's optoelectronics and optical device products are necessary components of optoelectronic display module products
In part, this acquisition will help the company extend its industrial chain, enhance its position in the industrial chain, and improve the company's business scale and profitability in the field of automotive display products.
It is understood that Xingwei Technology is the third company that Woge Optoelectronics plans to acquire since April. Previously, there were Shenzhen Huichen Electronics Co., Ltd. (hereinafter referred to as "Huichen Electronics") and Beijing Baoang Electronics Co., Ltd. (hereinafter referred to as "Beijing Baoang").
Among them, Woge Optoelectronics completed the acquisition of 31% equity of Huichen Electronics in April. The transaction price was 26.97 million yuan, and it has accumulated 51% of the equity of Huichen Electronics.
Huichen Electronics is mainly engaged in the research and development, design, production and sales of LED backlight products, and is also in the middle reaches of the optoelectronic display industry chain. Vogel Optoelectronics believes that this acquisition will help expand the company's business scale and product categories, extend the company's industrial chain, and provide strong support for advancing the company's cooperative research and development process in the field of Mini LED backlight products, which will help promote the company's product transformation.
51% shares of Beijing Baoang
The acquisition of rights was announced in early May, with a transaction price of 204 million yuan, and has not yet been completed.
According to relevant announcements issued by Woge Optoelectronics, Beijing Baoang and its subsidiaries are comprehensive service providers that provide customers with overall solutions for high-end optical film materials used in the display field. They are in the main material or component field upstream of the optoelectronic display industry industry chain.
Woge Optoelectronics stated that the acquisition of Beijing Baoang is an important strategic move for the company to improve its industrial chain layout, which is conducive to giving full play to synergy and increasing the company's business scale and profitability.
It is worth noting that the acquisitions of Ruoxingwei Technology and Beijing Baoang are proceeding smoothly. Together with Huichen Electronics, Woge Optoelectronics will add three new holding subsidiaries to the consolidated balance sheet in 2021, which is expected to significantly increase the company's performance.
According to the 2020 annual report of Woge Optoelectronics, the company achieved revenue of 604 million yuan in 2020, net profit attributable to the parent company of 14.1106 million yuan, and total assets of 2.013 billion yuan.
ANNA