Hongli Optoelectronics acquires Liangyou Hardware to consolidate the market of LED lighting

Following the capital increase and heavy investment in the yuan, the shareholding in Dongguan Xinquan to strengthen the market development of lighting engineering, the acquisition of Smect to consolidate the leading position in the white light packaging market, LED packaging giant Hongli Optoelectronics once again released a heavy news - the acquisition of Dongguan Liangyou hardware products 51% equity of the company.

On the evening of August 14, Hongli Optoelectronics disclosed that it intends to use its own funds of 28 million yuan to acquire 51% equity of Dongguan Liangyou Hardware Products Co., Ltd. held by Mr. Liao Jianwen.

The data shows that Liangyou Hardware was established on August 3, 2007, with a paid-up capital of 15.03 million yuan. The main business is research and development, production and sales of LED brackets. At present, the shareholders are Liao Jianwen and You Guoyu, who hold 90% and 10% equity of Liangyou Hardware respectively. From January to June of 2014 and 2013, it realized operating income of 5,770,900 yuan and 29.74 million yuan respectively, and net profit of 4,906,300 yuan and 277,600 yuan respectively.

Liao Jianwen and You Guozhen promised that the net profit realized by Liangyou Hardware in 2014, 2015 and 2016 will not be less than 10 million yuan, 14 million yuan and 18 million yuan respectively.

"This is a win-win cooperation." Hongli Optoelectronics Secretary-General Deng Shou-ti said in an interview with industry organizations that the acquisition of Liangyou Hardware aims to effectively reduce the cost of the company's LED packaging raw materials and improve profitability. "On the other hand, in the case of the same quality, we will give priority to the support of Liangyou Hardware, which is also a big advantage for Liangyou Hardware."

In addition, according to Deng Shoutie, Liangyou Hardware also produces and sells lenses in addition to the LED bracket business. “Similarly, in the case of the same quality, we will also give priority to the use of lenses to further reduce the cost of raw materials.”

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