Since entering the internet advertising sector last year, Wanrun Technology appears to have found its niche. On September 1st, the company announced its intention to acquire 100% of Xinli Media’s equity for 765 million yuan, marking another step in expanding its advertising media business. Launched in May this year, Wanrun Technology initially planned to buy out two firms—Hangzhou Xinli Media and Shanghai Yutou Network—by issuing shares. However, due to delays in submitting subsequent reports, the acquisition of Shanghai Yutou couldn’t proceed. On August 31st, the Wanrun Technology board approved the acquisition plan for Xinli Media. The deal involves purchasing 100% of Xinli Media's equity held by Orange Investment, Xinli Investment, Yongsheng Investment, Jintou Zhihui, and Boss Electric, through both share issuance and cash payments. As of June 30th, Xinli Media’s net asset value stood at 151 million yuan. Using the income approach, the valuation came to 768 million yuan, reflecting a 409% increase. The final agreed price was set at 765 million yuan. Of this amount, 584 million yuan will come from new shares, equivalent to around 51.46 million additional shares. The remaining 181 million yuan will be paid in cash. Additionally, Wanrun Technology plans to raise up to 200 million yuan through a rights issue to cover cash payments and other related expenses. Notably, Boss Electric owns a 4.9% stake in Xinli Media. Based on the valuation of 765 million yuan, the stake’s book value would be approximately 37.49 million yuan. However, in this transaction, Boss Electric’s shares were purchased entirely in cash, with a transaction price of just 19.45 million yuan. Previously a LED packaging and lighting solutions provider, Wanrun Technology ventured into the internet advertising industry in 2016 via the acquisitions of Dingsheng Yixuan and Yiwan Wireless. This year, the company’s advertising media business generated 774 million yuan in revenue during the first half, representing 60.41% of total revenue. Xinli Media specializes in TV media advertising services, combining agency and content marketing. For Wanrun Technology, acquiring Xinli Media is seen as a strategic move to deepen its presence in the internet advertising space and consolidate industry resources. Interestingly, back in January 2016, Jinli Huadian had proposed acquiring Xinli Media for 675 million yuan. A year later, however, Jinli Huadian abandoned the deal. Now, after over a year, Xinli Media has resurfaced, this time valued at nearly 100 million yuan higher. In this acquisition, Wanrun Technology’s counterparties have committed that Xinli Media’s net profits for 2017-2020 will reach at least 60 million, 75 million, 90 million, and 97.2 million yuan, respectively. While the decision to acquire Xinli Media is bold, it reflects Wanrun Technology’s growing confidence in the advertising industry. Over the past few years, the company has shown a willingness to adapt to market demands, transitioning from traditional industries like LED manufacturing to digital platforms. Xinli Media, with its strong TV advertising presence, complements Wanrun Technology’s existing portfolio, offering opportunities for cross-promotion and diversification. Moreover, the current valuation hike compared to the previous attempt by Jinli Huadian suggests that Xinli Media’s performance has improved significantly. This growth trajectory aligns well with Wanrun Technology’s long-term goals of enhancing profitability and expanding its market footprint. Despite the challenges of managing a larger, more complex organization post-acquisition, Wanrun Technology remains optimistic. The commitment from Xinli Media’s management team to deliver strong financial results adds to the company’s confidence. However, integrating such a large-scale acquisition while maintaining operational efficiency will require careful planning and execution. Overall, this acquisition marks a significant milestone for Wanrun Technology as it seeks to solidify its position within the competitive internet advertising landscape. Whether the company can fully capitalize on the potential synergies remains to be seen, but the initial steps seem promising.
TWS, means true wireless stereo. The implementation of this technology is based on the development of bluetooth chip technology. Technically speaking, it means that the mobile phone is connected to the main speaker, and then the main speaker is connected to the speaker through the Bluetooth wireless mode, thereby realizing the true separation of the left and right channels of the Bluetooth. When the slave speaker is not connected, the main speaker returns to the mono sound quality. TWS technology is used in the field of Bluetooth Headsets, so it has also spawned a new product - TWS Bluetooth headset.Since the TWS Bluetooth headset does not require a wired connection, the left and right earphones form a stereo system through Bluetooth, and the convenience of listening, talking, and wearing are improved.
Advantages:
1. True wireless structure, completely abandon wired troubles, and exercise more freely.
2. Various ways of use, both exclusive and shared, and can also be used as two earphones.
Headphones Earbuds,Bluetooth Earbuds,Earbud Bluetooth,Ear Buds Shenzhen Linx Technology Co., Ltd. , https://www.linxheadphone.com
