After a temporary trade suspension last week, Kingsun Optoelectronic released an announcement yesterday reporting the company had acquired 51% shares on three lighting companies and will resume trading today, according to a report of cnstock.com.
Three lighting companies mentioned in Kingsun’s announcement are Lianhe Juchuang Technology（深圳聯合聚創科技發展有限公司）, YSH Lighting（中山市一聲喊照明燈具有限公司）and EMC（深圳萬城節能股份有限公司）. Companies involved had already signed stock purchase agreements. Kingsun does not have any relationship with the newly acquired companies, the company said.
Kingsun acquired the shares of the companies involved with less than RMB 300 million (US$ 48.37 million) equity fund after preliminary planning, according to the announcement.
The acquisition shows Kingsun’s intention to integrate its downstream distribution channels involving LED lighting fixtures and energy-saving products. It is worth pointing out YSH Lighting, which main products are lighting fixtures and home appliances, had a consolidated revenue of RMB 275 million for January to October 2014, with merely RMB 100 million registered capital.
The acquisition is expected to strengthen Kingsun’s industrial chain and form a better synergy for a greater market share in the future, Kingsun’s Board Secretary Zhu Duan said.
