Qinshang intends to invest 655 million acquisition of 6.15% stake in PHILPS lumens

According to China securities news, KingSun September 17th evening announcement said the company plans through all the remaining funds, the change of LED indoor lighting project, all the remaining funds raised, LED outdoor lighting and landscape lighting project funds, and all the remaining part of the company's working capital of Holland Royal PHILPS split PHILPS ($100 million lumens indirect investment equivalent to 654 million 840 thousand yuan) for the indirect acquisition of 6.15% stake in PHILPS lumens.

Change the use of funds raised

Statistics show that in early 2011, the company to 24 yuan / share price to the public offering of ordinary shares of 46 million 835 thousand shares, raising the total amount of funds of $1 billion 124 million 40 thousand, after deducting the actual issue of funds raised $1 billion 56 million 815 thousand and 400. And one of the investment projects to raise funds is LED indoor lighting projects".

The company said that the project was originally planned to build a new LED indoor lighting production system, to create a complete LED indoor lighting products manufacturing units, including die-casting, injection molding, machining, packaging and lighting fixtures. The total investment of the project is 141 million 119 thousand and 500 yuan.

In recent years, the overall economic downturn, LED lighting applications market slowdown, especially the market demand of indoor lighting release rate was significantly lower than the industry expected, coupled with the current LED indoor lighting products, the relative excess capacity, industry concentration, channel advantage is not obvious single enterprise or brand market share is relatively dispersed.

Notice that the company began to pay more attention to the channel construction from the year 2013, but is still in the initial stage of market development, if early accelerate investment to expand the production scale of equity investment projects, will cause the front stage production capacity of the project, the excess waste of money, and the resulting depreciation costs, management costs will have a greater impact the business operation of the company, the company postponed the construction schedule of the project. Combined with the actual development of the market situation and the company's latest strategic considerations, in order to save the operating costs, the company's directors approved the proposal to raise funds to invest in the project extension.

The company said that as of June 30, 2015, the project has invested to raise funds for 3 million 353 thousand and 200 yuan, accounting for a total investment of 2.38% projects, the remaining 153 million 481 thousand and 600 yuan of funds (including interest), the company plans to the project all the remaining funds for investment in PHILPS lumens.

PHILPS lumen

This PHILPS is a leading global technology company, mainly supplies the LED component to the lighting industry, and to the automotive industry supply LED and traditional lighting components, the automobile, LED flash and LED chip business area to gain a leading position in the market. The company's revenue in 2014 was approximately $2 billion, before interest and tax depreciation and amortization of approximately $410 million in profits in 2014. The company's business is mainly composed of general lighting, automotive lighting, consumer lighting.

Among them, in 2014, PHILPS lumen general lighting business sales of more than $400 million, products include high power, color, integrated package, medium power, low power, Matrix (L2) and anti loaded wafer and emerging products; traditional car product sales of nearly $900 million. In the same year, auto LED sales of nearly $300 million. Traditional automotive products include halogen lamp, xenon lamp, high efficiency bulb, signal lamp and mobile accessories. Automotive LED products include high power and medium power products; consumer products sales of nearly $400 million. Products include high power, medium power, low power, Matrix (2) as well as solid-state backlight LED solutions for TV, mobile devices and computer displays.

The company said that the implementation of the project in line with national industrial policy, through the integration of the industry to enhance and consolidate the company's leading position in the field of semiconductor lighting, strengthen the company's strength, enhance the image of the brand. The company plans to invest a total investment of $lumens for $100 million, the use of the company's own funds to invest in the above part of the lack of funds.

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