On the evening of October 16, Yuanrong Technology announced that the company intends to acquire 85.61% equity of Qingdao Jiesheng Electric Co., Ltd. by means of non-public offering of shares and payment of cash. Through the acquisition, Yuanrong Technology will further improve its strategic layout in the deep ultraviolet field and expand the “big health†territory.
According to the announcement, Yuanrong Technology intends to issue 579.364 million shares at a price of 12.42 yuan per share to acquire 43.57% equity of Jiesheng Electric held by Zhang Guohua, Shanghai Jiubu Equity Investment Partnership (Limited Partnership), Liang Liping and Wu Shuai; In cash, it acquired a 42.04% stake in Jason Electric held by International Finance Corporation, LB CROSS-BORDER FUNDII, Zhang Jianping, Gao Ying and Zhou Wei. Upon completion of the transaction, Yuanrong will hold an 85.61% stake in Qingdao Jiesheng.
According to the data, Qingdao Jiesheng, the target of the acquisition, has been involved in the research of deep-UV LEDs for more than ten years. It has the unique GaN-MOVCD (deep-UV growth equipment) manufacturing technology and deep-UV epitaxial chip production technology. The technical indicators of the products have reached the international advanced level. Through this acquisition, Yuanrong Technology will become the first share of the deep-UV health chip in the capital market.
Deep UV: LED next to the new blue ocean market
At present, UV LED (UV LED) is widely used in sterilization, printing, curing, medical and other fields. The UV LED product specifications can be divided into three categories: UV-A (long-wave ultraviolet 320-400 nm), UV-B (medium-wave ultraviolet 280-320 nm) and UV-C (short-wave ultraviolet). The former technology and application market has gradually matured, mainly used in industrial curing, 3D printing, ink printing and other fields. UVB and UVC are called deep ultraviolet light sources, which are mainly used in sterilization, disinfection, purification, medicine, military, confidential communication and other fields, and are favored by the market. Among them, UV-B is mainly medical, and UV-C is sterilization. The price of deep-UV LED chips is several hundred times that of ordinary LED chips, and the profit margin is extremely high.
With the strengthening of the market requirements for product sterilization and purification lamps, deep-UV LEDs have advantages that other sterilization products can't match, and will gradually enter the civil, medical, military and other industries.
According to a study published in the May 2012 issue of the world's leading medical journal Lancet, 23% of cancer patients in developing countries are caused by viral and bacterial infections. In daily life and in public places, people inevitably touch, carry, and spread viruses. Tests have shown that when deep ultraviolet is used in air conditioners, refrigerators, water dispensers, dishwashers, vacuum cleaners, etc., the sterilization effect can reach 99.99%, and most of the known strains can be eliminated in a shorter time. Viruses such as Escherichia coli and variants, Staphylococcus aureus, Bacillus subtilis var., Pseudomonas aeruginosa, Candida albicans, etc.
With the introduction of UVC chips, it has been welcomed by the field of white goods, first in the fields of refrigerators, water purifiers, air conditioners, air purifiers, dishwashers and other fields. Some professionals said that due to the advantages of easy carrying and deep energy consumption of deep ultraviolet applications, they have attracted more attention from families and individuals. Carry a U-disk-sized deep-UV LED product, whether it is a household product such as a toothbrush, a comb, a book, a tableware that is easy to breed from bacteria, an electronic product that cannot be cleaned, a mobile phone, a computer, or a wound that has just fallen. Instantly achieve effective disinfection and create a healthy environment for families and individuals.
At present, deep ultraviolet chips also play their unique advantages in military communications. Due to the short-wave characteristics of deep-UV LEDs, it has the uniqueness of flexible, low-eavesdropping, omnidirectional and non-line-of-sight communication, which can meet the short-distance and confidential communication needs between warships and aircraft formations.
Extensive mergers and acquisitions increase company profits
According to the data, Qingdao Jiesheng, the target of the standard, currently has a market sales of about 20 million yuan. The above-mentioned insiders said that the acquisition of Qingdao Jiesheng by Yuanrong Technology is a strong alliance and complementary advantages. The world's leading UVC modules have been developed with the world's leading platform for flip-chip and flip chip technology. After the merger is expected to be put into production, the deep UV chip project will contribute 50 million net profit to the company in 16 years, providing the company with a new profit growth point.
At present, the global deep-UV LED market application is in the early stage of rapid growth. According to statistics, U-VIX, which is dedicated to the development of UV light source applications, has sales of only US$2 million in 2010, and sales in 2012 exceeded $30 million. The total demand for deep ultraviolet LEDs in the domestic market is as high as 15 billion yuan. And because Qingdao Jiesheng is the only company in China that produces DUV LEDs, its market share accounts for almost 100%. Therefore, with the continuous increase in the use of deep-UV LEDs in the civilian market, Qingdao Jiesheng is expected to achieve rapid growth at dozens of times per year.
Plus code deep UV industry chain accelerates strategic layout to lead the whole industry
It is worth noting that Yuanrong Technology has already begun to deploy the deep ultraviolet market. The company announced on August 24 that it has reached a deep technical cooperation with Zhonghao Optoelectronics Co., Ltd., and jointly developed the MOCVD with deep ultraviolet epitaxial growth equipment to promote the strategic goal of developing related technologies in the deep ultraviolet field. It is reported that in fact, the two companies have started cooperative development two years ago.
The reporter noted that up to now, there is no commercial MOCVD provider for deep ultraviolet epitaxial growth equipment, and the cooperation with Zhonghao Optoelectronics to jointly develop the next generation of deep-deep MOCVD equipment not only ensures the company is deep. The mass production of UV LEDs has become the only company in China that has the ability to produce deep-UV LED chips and is at the forefront of technology.
Some analysts pointed out that the strategic significance of Yuanrong Technology's acquisition of Qingdao Jiesheng is in the long run. The company will actively expand into the field of deep ultraviolet chips in the future. The combination of deep ultraviolet chips and medical health will have broad application prospects. According to the company's 2014 results and valuation, the company's net profit in 2014 was 64.267 million yuan, and earnings per share was 0.28 yuan / share. (This article is submitted by Yuanrong Technology)
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