On July 15th, Furi Electronics announced that it plans to issue a non-public offering of 50 million shares at a price of 6.41 yuan/share for the acquisition of 92.8% equity of Shenzhen Mairui Optoelectronics Co., Ltd. and repayment of borrowings. This is also the first refinancing since the company went public.
Talking about the reasons for the company's fixed acquisition of Mairui Optoelectronics, Xu Zhengsheng told reporters that Furi Electronics, which has been plagued by the main business, has not been operating for many years. After the new board of directors determined energy-saving and emission reduction of LED lighting energy conservation, industrial energy conservation, energy-saving home appliances and communication products and domestic and foreign trade as the three main businesses, the company has been looking for mergers and acquisitions targets that are compatible with the company's business.
Xu Zhengsheng introduced that the initial contact between Furi Electronics and Mairui Optoelectronics was at the end of April this year, when Mairui Optoelectronics was already conducting IPO counseling, and its competitive advantage in LED business attracted Furi Electronics.
According to public information, Mairui Optoelectronics is mainly engaged in LED display. In 2012 and the first half of this year, the operating income was 320 million yuan and 177 million yuan respectively; the net profit was 25.42 million yuan and 10.525 million yuan respectively.
It is understood that as a professional LED display manufacturer, Mai Rui Optoelectronics overseas orders account for more than 50% of its business. In addition, the company has established a comprehensive international market network. Last year, LED large screen exports ranked the top three in China. The company's partners are mostly first-line customers such as NBA Alliance and TOM Media. In terms of market positioning, the company's main sports event LED big-screen market dominates. Xu Zhengsheng said that this is all lacking by Furi Electronics.
Xu Zhengsheng also revealed that the company's acquisition was not smooth. In the initial stage of contact between the two parties, Mairui Optoelectronics fluctuated between IPOs and mergers and acquisitions. In the process of M&A negotiations, there are also other domestic listed companies participating in the competition. The price of Furi Electronics is not the highest.
It is reported that the main LED display of Mairui Optoelectronics is widely used in outdoor advertising, sports venues, transportation and performances. According to the China Industrial Economic Research Network, it is estimated that by 2015, the global LED display market will reach 21 billion US dollars, of which the domestic market is about 30 billion yuan.
According to Qi Zhihang, chairman of Furi Electronics, the cake in the LED industry is growing at a compound annual growth rate of around 30%. It is entirely possible for the company to realize leap-forward development with the LED business in the future.
Qi Zhihang said that the LED industry is mixed in the early development process, and now is a good time for mergers and acquisitions. Furi Electronics carried out internal business integration last year, splitting the original LED business into two. Among them, Furi Lighting is responsible for LED lighting business, and Furi Optoelectronics is mainly engaged in LED large screen. At present, the company's LED large-screen business volume is still relatively small. If it takes time to build up on its own, it may miss the best opportunity. The company hopes to quickly enlarge and strengthen the LED industry with the acquisition of Mairui Optoelectronics.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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