Huacan optoelectronics, one of the global LED chip giants, suddenly changed its “boss”!
On the evening of January 22, Huacan optoelectronics announced that Zhuhai HUAFA entity Industrial Investment Holding Co., Ltd. (hereinafter referred to as “Huashi holding”) would transfer 14.44% of the shares of the listed company by agreement, further increasing its shareholding ratio to 24.87%, becoming the largest shareholder of the company. The equity transferors are Jing Tian capital I, Jing Tian capital II, Kai le and Shanghai Canrong. The transaction consideration is about 1.85 billion yuan.
Two backgrounds attract attention from all sides
Why has this deal attracted wide attention from LED industry and capital market?
First, there are two backgrounds. One is the industrial background.
With the release of Samsung’s new neoqled TV, the market generally believes that 2021 will be the first commercial year of mini led. According to yole, a market research organization, the global Mini LED display equipment is expected to grow from 3.24 million in 2019 to 80.7 million in 2023, with a compound annual growth rate of 90%.
Industry chain companies have been working hard. In the chip link, San’an optoelectronics announced that the mini led and micro LED chips had been supplied to Samsung in bulk, and Huacan optoelectronics announced the batch delivery of mini led in the fourth quarter of the year before last; in the packaging link, Ruifeng optoelectronics announced that it would spend 400 million yuan to build the mini LED backlight packaging production project, and Guoxing optoelectronics announced that it would invest no more than 1.9 billion yuan to focus on the production of mini led in the next five years LED products; panel link, BOE and csot have built Mini LED panel production lines
Second, equity background.
According to the disclosure, Jing Tian capital I, Jing Tian capital II and Kai Le intend to sell 159 million shares in this transaction, accounting for 12.83% of the total equity of Huacan optoelectronics.
These three funds belong to the well-known institutions to invest in IDG capital.
On the eve of the outbreak of the industry, why did IDG choose to sell the equity of Huacan optoelectronics?
According to people familiar with the matter, IDG capital began to invest in Huacan Optoelectronics in 2008, and then gradually increased its investment. Up to now, it has been 13 years, far exceeding the duration of general funds.
After the completion of this transaction, Yiwu harmony core light equity investment partnership and new sure limited, which are related to IDG capital, still hold nearly 20% equity of Huacan optoelectronics.
Data show that in the LED industry, IDG capital, through years of vertical and horizontal industrial expansion and release of synergy, has formed the LED industry chain layout of “substrate epitaxial chip packaging lighting application” around the two core A-share listed companies of Huacan optoelectronics and MuLinSen, and has become the industry leader with heavy discourse power in the LED industry chain.
At the same time, IDG capital has invested in a series of enterprises in the LED industry chain, including maoshuo power supply (LED lighting driving power supply), yimeixinguang (high brightness LED packaging), Taiwan Ruijie (ledpss), Beixing Technology (LED infrared obstacle avoidance module), bluecrystal technology, etc., forming an industrial cluster effect.
What is the strength of the receiver?
What is the strength of the receiver and how to find it?
According to public information, Huashi holdings is a wholly-owned subsidiary of HUAFA group. HUAFA group is a comprehensive state-owned enterprise group and a well-known leading enterprise in China. It now holds 5 main board listed companies and 2 new third board listed companies.
In 2019, based on the in-depth development of the original industrial investment business, HUAFA group will integrate the group’s entity industrial resources and formally establish an industrial investment cluster with Huashi holding as the core platform. Up to now, we have invested in leading enterprises and high growth innovative enterprises in Huada Zhizao, aixu technology, Youbisheng, Guanyu battery, Anheng information and other industries.
According to further inquiry, in December 2020, Huashi holdings participated in the refinancing of Huacan optoelectronics, obtained 10.43% of the shares of the listed company, and became the second largest shareholder.
The reporter learned that the key person who facilitated the transaction between the major shareholders was Dr. Zhou Jianhui, President of Huacan optoelectronics.
It all started with the 1.5 billion yuan fixed increase financing of Huacan optoelectronics last year
It is understood that in the process of leading the refinancing of Huacan optoelectronics last year, Zhou Jianhui learned that HUAFA Group intends to invest more in the semiconductor industry. At the same time, in addition to the LED chip field that Huacan has worked hard for many years, the fixed increase project also includes the third generation compound semiconductor, and the business further extends to Gan power devices. In the future, the downstream radiation field can expand from consumer electronics to automotive electronics and digital electronics According to the center and other applications.
Accordingly, Zhou Jianhui immediately introduced the situation of Huacan optoelectronics to HUAFA group. After a series of due diligence, the two sides soon reached an agreement on the fixed increase. Finally, HUAFA group subscribed for Huacan optoelectronics. In the process of fixed increase, HUAFA group recognized the management team led by Zhou Jianhui and the development strategy of Huacan optoelectronics, so after becoming a shareholder, it soon expressed the idea of continuing to increase its shareholding.
Zhou Jianhui took the lead in communicating with the old shareholders IDG capital and HUAFA group, persuading the former to sell some shares of the fund that would have been faced with reduction when it was due. Not surprisingly, this idea was quickly recognized by all parties, and it can be said that it was a hit that led to this transaction.
Check the announcement, after participating in the refinancing of Huacan optoelectronics, Huashi holdings expressed the possibility of continuing to increase its holdings.
After participating in the refinancing project of Huacan optoelectronics, the relevant person in charge of HUAFA group once said that the investment in Huacan optoelectronics is based on Huacan’s experience in LED chip field, especially in mini On the other hand, it is based on the need of expanding the industrial layout of the group in the field of chip semiconductors.
According to Huacan photoelectric 2020 semi annual report
According to the public information, Huacan optoelectronics is the industry leader with the second largest LED chip production capacity and the third largest income scale in the world. The mini LED chip products produced by Huacan optoelectronics take the lead in batch entering the market. It is one of the three enterprises with the capacity of mini chip mass production in the world, and actively cooperates with BOE and other international manufacturers in the more advanced micro led field. In addition to the LED chip field, Huacan optoelectronics has raised 300 million yuan to invest in the third generation compound semiconductor field, extending to power electronics, RF, filter and other industries.
“Although IDG has strong strength and has been with Huacan optoelectronics for more than 13 years, as an investment institution, it is inevitable to gradually reduce its holdings to exit. After Huashi holding took over, in fact, it formed a situation in which many parties cooperated to give full play to their respective advantages. “Wang Fang, a researcher at Dongfang securities electronics, thinks.
Reprint indicated source：Spark Global Limited information