In order to focus on the LED main business and launch off-grid lighting, the Changfang Group has made new progress in the acquisition of Kang Mingsheng.
Recently, the Changfang Group issued an announcement saying that after the equity transfer agreement, it is planned to purchase a total of 35.7454% of Kang Mingsheng and 29 natural persons held by Li Dichu, Li Yinghong and Nie Wei in cash, in addition to Li Dichu, Li Yinghong and Nie Wei. The total number of shareholders other than shareholders is no more than 8,994,000 shares, and the overall valuation is 742 million yuan. Upon completion of the transaction, the shares held by the Changfang Group will be raised from 55.8784% to 91.6238%-100.00%. Kang Mingsheng is still a holding subsidiary of the Changfang Group.
The Changfang Group believes that the LED industry has been completely reshuffled in the lighting field and entered the demand harvest period. In the field of upstream chips, the price has bottomed down, leading to marginal contraction. At present, there is a shortage of supply; the midstream packaging field is also being streamlined, and the packaging enterprises will be reduced from 1,000 in 2016 to 500 in 2020; in downstream applications, LED The penetration rate of lighting reached 42%, the increase was obvious, and the demand in the future increased steadily. At the same time, the government strongly supports the industry's market prospects. It can be said that the support of the big environment has become a popular outlet, making the Changfang Group easier to take off. At this time, fundraising and acquisition is undoubtedly a help for the company's development.
In fact, with the rapid growth of LED mobile lighting, many industry leaders have sprung up. Under the conditions of many choices, the Changfang Group twice threw the "hydrangea" to Kang Mingsheng. With such a soft spot, what is the "charm" of Kang Mingsheng?
On the one hand, the two are like-minded, and one of the areas of deep cultivation in the future is “off-network lightingâ€. Off-grid lighting refers to the provision of electric lighting solutions that do not rely on the commercial power grid, use independent power generation, energy storage devices for no power grid, or no reliable power grid, or power outages due to emergency power grids. Compared with the traditional LED lighting in the Red Sea market, off-grid lighting is the deserved blue ocean market. In the early stage of development, the market share and control of a single enterprise in the segmentation area are scattered, and the giant card position pattern has not yet formed.
Kang Mingsheng has just intensively worked on special lighting and mobile LED lighting for 13 years, and is in the "official" level in the field of off-grid lighting. As one of the major manufacturers in the off-grid lighting industry, Kang Mingsheng has core technologies for integrated lighting solutions such as mold manufacturing technology, injection molding technology, heat dissipation structure design and design, and has strong recognition of segmentation business areas. At the same time, in terms of domestic sales, Kang Mingsheng has a stable sales channel and a wide coverage. In order to comply with Internet sales, in November 2016, Shenzhen Qianhai Kangmingsheng E-Commerce Co., Ltd. was established to develop e-commerce sales channels. It is also strong in sales abroad, and its products have been sold to more than 40 countries and regions such as Southeast Asia, Middle East, South America and Africa.
At the same time, whether it is comparable with the New Third Board comparable company or A-share comparable company, Kang Mingsheng has strong market competitiveness in the mobile lighting segment.
As the saying goes, relying on the big tree to enjoy the cool, the further integration of the Changfang Group and Kang Mingsheng will activate Kang Mingsheng's first-mover advantage in off-grid lighting, and focus on the off-grid lighting segment to release the existing horizontal and horizontal sales channels. It is conducive to achieving differentiated breakthroughs and leap-forward growth, achieving endogenous doubling.
On the other hand, after a long period of running-in, the two companies have a tacit understanding in the early stage. Since the first acquisition of Kang Mingsheng's 60% stake in the first time in 2015, the two companies have been highly consistent in terms of corporate culture, organizational structure, corporate system, industrial technology, etc., with strong complementary advantages, full advantage of the industrial chain, and stable performance. On this basis, the Changfang Group plans to purchase the equity of Kang Mingsheng, the integration risk will be lower, and the synergy effect will be more obvious.
It can be seen that the addition of Kang Mingsheng by the Changfang Group is a demonstration of a win-win model. Through brand co-construction and sales channel sharing, we will give full play to the advantages of the business, realize complementary resources, and consolidate the competitive position of both parties in the field of LED lighting.
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