Apple supplier Xinlun Technology completed acquisition of 'OV' supplier Qianhong Electronics

In October 2017, Xinlun Technology planned to purchase 100% equity of Qianhong Electronics by issuing shares and paying cash. The transaction amount was RMB 1.5 billion.

On June 25th, Xinlun Technology announced that on April 19, 2018, Qianhong Electronics had completed the registration of changes in the ownership of its 100% equity. Qianhong Electronics became a wholly-owned subsidiary of Xinlun Technology. .

According to the disclosure, the transaction is divided into two parts: issuance of shares and payment of cash to purchase assets and supporting financing: Xinlun Technology intends to pay 25.51% of the transaction consideration in cash, totaling 386,558,000 yuan; intends to pay the transaction price by issuing shares 74.49% of the total amounted to 111,734.20 ten thousand yuan.

The issuance price of the issuance of matching funds was 12.95 yuan per share, and the listed company issued a total of 31,660,231 shares to 7 subscription objects.

It is reported that as of April 19, 2018, Xinlun Technology purchased non-publicly issued shares and paid cash to purchase 100% of the shares held by all shareholders of Qianhong Electronics has been transferred to Xinlun Technology. After the completion of the issuance, The registered capital of Xinlun Technology will increase by RMB 111,511,177 and the registered capital after the change will be RMB 1,117,944,161.

Xinlun Technology stated that the acquisition of Qianhong Electronics will help the listed companies expand the electronic functional material industry chain, enrich and optimize the product structure, and further promote the company's functional materials products by integrating the customer resources of both parties, and strengthen the prospect of the listed companies in the new technologies. Exchanges and communications with end-users in terms of reserves, new product development, etc. Improving the competitive advantage of listed companies in the functional materials sector and the profitability of the main business are the compliance of listed companies with industrial upgrading, opening up the upstream and downstream of the industrial chain, and improving core competition. The major strategic initiatives of the force.

According to statistics, Xinlun Technology's functional tape products have become the core supply chain for Apple laptops and mobile phones. Qianhong Electronics is mainly engaged in the research, development, production and sales of consumer electronic functional devices. Its downstream customers include mobile phones, tablet computers, and wearable devices. Manufacturers such as OPPO, Vivo, 3M, LG, NITTO, SONY, TESA, S&K, etc. Currently Qianhong Electronic's downstream customers are mainly OPPO, Vivo's two major mobile phone brands, 2016 OPPO, Vivo two major customers The business revenue accounted for 67.19% of its total revenue. Once the successful acquisition, it will be beneficial to Xinlun Technology to expand the electronic functional material industry chain, and to enrich and optimize the product structure.