On August 7, 2018, Kangda New Materials released the Announcement on the Acquisition of 25% Equity Interests in Shenzhen Easy Come Technology Co., Ltd., which showed that Kangda New Materials and Easy Come major shareholders Xinyu Easy came to venture capital companies and Yi Come and sign the "Equity Transfer Agreement" in Shanghai on August 7, 2018. Kangda New Materials acquired 11.33575 million shares held by the original shareholder Xinyuyi with its own funds of 11.25 million yuan and cash. After the completion of the second acquisition, Kangda New Materials will hold a 25% stake in Easel.
This also means that the valuation of Easere has reached 450 million yuan. Easere's performance commitment is after the non-recurring profit and loss of the consolidated statement attributable to the parent company's owners in 2018, 2019 and 2020. The net profit ("committed net profit") is not less than 30 million yuan, 40 million yuan, and 50 million yuan, respectively.
As the largest on-cell LCD touch display module and naked-eye 3D display manufacturer on the market, Easy Come is mainly engaged in research and development, design, production and sales of small and medium-sized LCD display modules, specifically high-end high-definition small and medium-sized displays, High-tech, high-value products and services such as embedded displays, naked-eye 3D displays, and AMOLED displays.
Easy to come LCD products are mainly used in the mobile phone industry, and customers include Duowei, VESTEL, Mickey, Legend, and Bird. The ODM business is a foundry for mobile phone brands such as Tianlong Mobile, TCL Communications, Fortune Boat, Konka, JDI. At present, Easycom has established good cooperation channels with international and domestic first-line LCD panel manufacturers, such as Taiwan-based AU Optronics, Innolux Optoelectronics, Hanyu Caijing, domestic BOE and Tianma.
Easy Coming currently has two production bases in Huizhou and Yancheng. Shenzhen, Huizhou and Yancheng all have R & D centers. The core team members of Easy Come have a deep understanding of various new products, new technologies and new processes in the liquid crystal display industry. They have obtained the full support of downstream customers and formed a strong ability to respond quickly. Easy Coming landed on the New Third Board on December 22, 2015, and was listed for public transfer in the national stock transfer system. From January 31, 2018, the listing was terminated in the national SME share transfer system.
According to the research data of the Rising Sun Big Data, in 2017, global mobile phone shipments were about 2 billion units, of which, Chinese brand shipments exceeded 900 million units, accounting for about 45%, which was 2 percentage points higher than in 2016. In 2017, the shipment volume of Chinese mobile phone brands achieved a year-on-year growth of 7.8%. The overall increase of Chinese brand mobile phones in the global market share has also increased the brand influence of domestic brands, while expanding the right to speak in the supply chain and other aspects. The main screen types of smartphones are LCD and OLED, so one of the direct beneficiaries of the rise of Chinese smartphone manufacturers is the local display-related upstream and downstream, including liquid crystal display modules.
Kangda New Materials said that the purpose of the transaction is twofold. One is that the company's adhesive products have an in-depth market layout in the field of consumer electronics. The products are mainly used for panel bonding, assembly and assembly of mobile phones, tablets, notebooks, and wearable devices. Parts bonding, etc. Easy Come is mainly engaged in R & D, design, production and sales of small and medium-sized LCD modules. The products are used in mobile phones, smart speakers, automotive and other fields. In the future, the two parties can jointly reserve and share cooperation resources in the use of adhesive products and market resources, fully integrate their respective resource advantages and professional capabilities, and achieve mutual benefit and win-win cooperation.
The second is that the company has research advantages in military policy and requirements in the military industry, and also has certain customer resources in the field of military informatization. Yi Yilai has begun its multi-faceted business layout in the fields of military electronics and military IoT systems. The company will provide resource assistance to Yiyi soon after it participates in the shareholding, so that Yiyi will give full play to its advantages in technology, products, and talents. Under the background of the national military-civilian intensive development development plan, expand and strengthen the military business and improve Profitability, thus achieving stable performance growth, enhancing shareholder returns, and enabling Kangda New Materials to obtain long-term investment returns.
The predecessor of Kangda New Material Company was Shanghai Kangda Chemical Experimental Plant, which was established in July 1988. In August 1993, Shanghai Kangda Chemical Experimental Plant was transformed into a joint-stock cooperative enterprise. In July 2002, Shanghai Kangda Chemical Experimental Plant was restructured into Shanghai Kangda Chemical Co., Ltd. In August 2010, Shanghai Kangda Chemical Co., Ltd. was changed into Shanghai Kangda Chemical New Materials Co., Ltd. as a whole.
After 30 years of development, Kangda New Materials has become one of the leading domestic fine chemical high-end manufacturing enterprises, mainly engaged in the research and development, production and sales of high-end adhesives and new materials. More than 98% of its products have independent intellectual property rights and possess Necessary qualifications for industry research and development, production, testing and supply. The main products include epoxy glue, polyurethane glue, acrylic glue, SBS adhesive and other types, with hundreds of specifications and models. Products are widely used in wind power generation, soft material composite packaging, rail transportation, ship engineering, automotive, electronics, construction, solar energy, machinery and equipment, and industrial maintenance.Among them, epoxy adhesives, polyurethane adhesives, acrylic adhesives for wind power blades, etc. The performance of this product has reached the level of similar international products.
Kangda New Material's annual report shows that in 2017, it realized operating income of 549.623 million yuan, a decrease of 7.42% over the same period last year; net profit attributable to shareholders of listed companies was 43.783 million yuan, a decrease of 47.02% over the same period last year.