On September 10, Juguang Technology announced that it planned to acquire 100% equity of COWIN DSTCO, LTD., South Korea, with its own capital of 350 million yuan in cash.
COWIN DSTCO, LTD., hereinafter referred to as "Target", was established in August 2005 and is a world leading provider of display panel repair equipment, mask (mask) repair equipment and pan semiconductor optical testing equipment.
It is understood that in 2021, the target company will achieve an operating income of 86 million yuan, a net profit of 87 million yuan, and a recognized investment income of 150 million yuan from the disposal of part of the equity of foreign investment. If the above-mentioned investment income is deducted, the company will lose money; In the first half of 2022, the company realized operating revenue of 42 million yuan and net profit of 26 million yuan, which is in a loss state.
We all have doubts about why Juguang Technology would choose to acquire a company that has lost money continuously？
As early as July this year, Juguang Technology held the third extraordinary general meeting of shareholders, and passed the Proposal on Using Part of the Over raised Funds and Own Funds to Invest in the Construction of Juguang Technology Pan semiconductor Photon Application Solution Industrial Base Project. This also means that Juguang Technology will be committed to the research and development of photonic application solutions for pan semiconductor process, and use its accumulated technical advantages and rich product development experience in the field of pan semiconductor process applications, as well as a strong technical team, to carry out research and development, production and sales of products related to pan semiconductor process applications.
Pan semiconductor process business (integrated circuit/flat panel display/emerging display/photovoltaic solar energy, etc.) is the development direction of national strategic emerging industries. At present, many key process equipment are monopolized by the United States, Japan and South Korea. Juguang Technology invested in the Pan semiconductor process project to realize the localization of laser application systems in the sub field of pan semiconductor process, improve the company's market share and break through new profit growth areas.
The target company is the world's leading supplier of Pan semiconductor optical detection equipment. Although it has suffered losses for a long time, it has made a lot of research and development investment in the early stage and has an internationally leading technical level. According to the audit report of the target assets, in 2021, the R&D expenses of the target company will be RMB 10.0234 million, accounting for 11.72% of the operating revenue; In the first half of 2022, the R&D expenses of the target company will be 4.459 million yuan, accounting for 10.53% of the operating income. The R&D expenses of the target company accounted for about 10% of the operating revenue.
Therefore, this acquisition is not a purely financial acquisition, but a strategic acquisition based on the company's development. After the completion of this acquisition, Juguang technology will obtain the system integration ability and process development ability in the field of Pan semiconductor process, as well as the understanding of the advanced pan semiconductor equipment market and the accumulation of high-quality customer resources, and provide complete systems and overall solutions for specific applications, so as to complete the development of the pan semiconductor process from core components and raw materials, to application modules, modules and subsystems, to specific application systems The overall layout of the overall solution.
However, the company cannot ignore the financial risks brought by the merger and acquisition. Juguang Technology said that the company has done a lot of research, and the target company is expected to achieve sales revenue growth in 2022. Based on the current market situation and the customer feedback from the research, the Company and the target company have strengthened their synergy. The target company's new business (mask repair and pan semiconductor optical detection) is expected to be rapidly launched in 2023.
Source: OFweek
