LED lights Wang Xingyu shares to develop international market prospects

Xingyu shares (601799) August 27th evening announcement, August 26th, a wholly owned subsidiary of the company (Hongkong) Co., Ltd. Xingyu lamp and Mag. Michael Wagner, Innovation-technology limited liability company (hereinafter referred to as "I&T") Dr. Harald Reiszner signed a "holder transfer agreement", by Hongkong Xingyu invested 4 million 600 thousand euros to acquire I&T, a wholly owned subsidiary of Neue I&T the limited liability company 70% stake.

I&T is mainly engaged in the development, production and sales of electrical / electronic systems and their interconnection technology; FFC (flexible flat cable), FFCe (extruded flexible flat cable), pre installed cable sleeve and 3D circuit board. Due to the deviation of business strategy and a large upfront investment, I&T company operating difficulties, has filed for bankruptcy protection. I&T company has passed the restructuring plan, the establishment of Neue I&T company as I&T company's 100% subsidiaries, I&T company will all the assets and business (excluding real estate), all technology (including a key patent) and employees (excluding real estate property management staff) transferred to Neue I&T company Neue I&T company purchased the acquirer; 70% the equity, payment of the price for the total debt [0.01%] right I&T 30%. According to the restructuring plan, I&T needs to seek the acquirer to implement the restructuring. According to the strategic plan, Xingyu shares are actively explore new areas of business, to seek suitable opportunities for mergers and acquisitions.

Neue I&T for the automotive market and other industries FFC cable technology global leader, Xingyu shares the acquisition from the level of strategic business development level and companies have to consider. The business level, FFC, FFCe flat cable, can save installation space, reduce weight, reduce the cost, in the process of LED and other electronic devices available for LED lights, lighting civilian use, thus forming synergies with Xingyu shares at the same time FFC, FFCe lighting products; as a kind of cable harness, can be widely used in automotive electronic modules or household appliances, medical and other industries, is conducive to Xingyu shares open up new business areas will be the future of I&T; the company has entered many automotive customers (including Mercedes Benz, BMW, Audi, Renault, Fiat, etc.) and industrial products customer support system, to develop Xingyu shares more customers will be the future; Neue I&T R & D, Xingyu shares will also serve as an important production base of developing international market. From a strategic perspective, through this acquisition, Xingyu shares to enrich and improve the domestic existing automotive electronics especially LED industry chain, the acquisition is Xingyu shares in recent years focus on the development of international initiatives important automotive electronics.

Many institutions optimistic about Xingyu shares LED lights and electronic business. Shanxi Securities believes that LED light source has the advantages of energy saving and environmental protection and improve the life of the lamp, so the LED is the inevitable trend of future development. The company for the new Volkswagen Golf combination lamp A7 design and production of LED on behalf of the domestic leading level this year, 500 thousand sets of LED lights and supporting the project will be put into operation, along with the market development, the future LED lights in revenue in the proportion will gradually improve. Automotive electronics is the future development trends in the auto industry, the lamp is no exception, the lamp electronic products are mainly AFS (Adaptive Headlights system), the company has technical reserves, the future is expected to open the market in high-end models.

China Merchants Securities believes that in the field of lights, the next 5 years, the company will steadily expand its market share, the company has gradually become the leader in the field of domestic lamps, and to extend its overseas support. The company will gradually grow into the international competitiveness of the automotive field leader, undertake overseas car industry transfer, the gradual erosion of joint ventures, foreign capital market share.

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