Today, the resumption of de ho Yun Da is still going ahead with the integration of Rex.

In the evening of June 29th, de Hao run Da announced that the company planned to make a major asset reorganization for the merger and acquisition of NVC controlled manufacturing operations and related enterprises in China. Up to now, some items have not been approved by the Hongkong stock exchange as scheduled, and the relevant work is still in progress. Therefore, the two parties have not yet signed the formal agreement, and the final plan is still uncertain. The company can not disclose the major asset reorganization plan in the scheduled time according to the original plan. The company's stock will resume trading in July 2, 2018. After the stock is resumed, the company will continue to actively promote this major asset reorganization.

The assets to be acquired by NVC are related to the production of related assets. The industry believes that this is based on the long-term division of labor between the two sides. If we can successfully complete the integration, the two will complement each other, eliminate related transactions, get rid of low price competition, and further promote the healthy development of the company. De Hao run Da will rely on its perfect supply chain system to enhance the level of production to be injected into the assets, and strengthen the layout of the whole industry chain of LED production, brand and sale, so as to achieve scale. Revenue and industrial upgrading; NVC can further expand its channel business on the basis of its strong terminal operation capability.

That is to say, if we can complete the integration, we will focus more on R & D and production. NVC will focus more on channel business, and the two sides will become the upstream and downstream partners in the value chain. The strategic synergy effect has been significantly improved, which will directly enhance the profitability of both sides and further transmit to the two tier market.

However, even though the merger and acquisition of de ho run DA and NVC has been brewing for many years, the progress is not satisfactory. At the end of last year, de Hao run Da announced that it intends to acquire NVC controlled manufacturing operations and related enterprises in China. However, there is no further information about mergers and acquisitions.

The industry believes that the integration of the two sides is inevitable, and based on the results of the current industrial integration, it can be speculated that if the company is able to acquire NVC, the effect of industrial integration will be further enlarged, and both the profit level and market share will be improved.

Source: China Securities Journal

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