Kangping Technology plans to acquire LED company Solu Electronics for 198 million yuan

On May 19, Kangping Technology (Suzhou) Co., Ltd. (hereinafter referred to as "Kangping Technology") announced that the company planned to acquire 100% equity of Shanghai Solu Electronics Co., Ltd. (hereinafter referred to as "Soulu Electronics") for RMB 198 million. The motion has been reviewed and approved by the board of directors.

According to the announcement, Kangping Technology will acquire its 90% stake in Solu Electronics from Hainan Citron Venture Capital Partnership, with a transaction amount of 178.2 million yuan; and at the same time, it will acquire its 10% stake in Solu Electronics from Jiangsu Kangping Holding Group Co., Ltd. (hereinafter referred to as "Kangping Holdings"), with a transaction amount of 19.8 million yuan. After the transaction is completed, Kangping Technology will hold 100% of the equity of Solu Electronics, and Solu Electronics will be included in the company's consolidated statements.

It is worth noting that, in fact, Kangping Technology announced as early as 2022 that it planned to acquire 100% of Solu Electronics from related parties for 150 million yuan. Two years later, Kangping Technology officially confirmed the acquisition proposal.

Information shows that Solu Electronics was founded in 2004. It is mainly engaged in the production, processing and sales of instruments. It has the ability to independently develop, manufacture, sell and export PCBAs, motor control modules, electronic laser products, LED series products, home appliance components, inverters and other products for various electronic power tools. Among them, LED series products include lighting LED power supplies for power tools, lighting LED PCB components.

The sales of PCBA products and LED products are the main sources of income for Solu Electronics, accounting for more than 80% of sales in total. Its products are mainly targeted at overseas markets. In 2024, Solu Electronics achieved revenue of 99.12 million yuan, net profit of 18.1357 million yuan, and net cash flow generated from operating activities of 21.95 million yuan, both increased compared to 2023.

As the acquirer of this transaction, Kangping Technology mainly focuses on the business of motors for power tools and complete power tool machines. Its main products include motors for power tools, complete power tool machines, machining shafts and other accessories, injection molded parts and other accessories.

Kangping Technology stated that this acquisition will help the company and Solu Electronics realize complementary advantages in technology, products, markets, etc., actively exert synergy effects, and promote in-depth industry vertical and business integration. After the transaction is completed, the company's layout and resource advantages in the power tool industry will be enriched, and its influence will be further expanded.