SSE STAR Market's Industry Integration Accelerating, High-quality Cases Implemented Progressively
Translated from Securities Daily Mao Yirong
Driven by favorable policies, the heat of the SSE STAR Market's M&A market continues to rise, becoming a powerful engine for industrial integration and upgrading. Drafts for several transactions such as the acquisition of Jiangsu Auto Electronic Control System Technology Co., Ltd. (AECS) by Wuhan Lincontrol Automotive Electronic Systems Co., Ltd., and the acquisition of Tianjin Sigma Microelectronics Technology Co., Ltd. by Naruida Technology Co., Ltd. have been released one after another, and will be submitted to the General Meetings for deliberation on June 13, 16 and 23 respectively.
After the release of the Eight Measures on Deepening the SSE STAR Market Reform and Supporting Scientific and Technological Innovation and the Development of New Quality Productive Forces (the "Eight Measures"), 105 new M&A transactions were disclosed, with a transaction amount exceeding 33.3 billion yuan. Among them, some large transactions were eye-catching, including the acquisition of minority shares in a holding subsidiary for 7.04 billion yuan by National Silicon Industry Group Co., Ltd., and the acquisition of Xinlian Yuezhou Integrated Circuit Manufacturing (Shaoxing) Co., Ltd. for 5.897 billion yuan by United Nova Technology Co., Ltd. Since the beginning of this year, the SSE STAR Market has disclosed 44 new M&A transactions, 15 of which purchased assets by issuing shares or convertible bonds, and five conducted major asset restructuring using cash.
SSE STAR Market's industry integration is accelerating
Driven by favorable policies, companies on the SSE STAR Market are actively employing M&A strategies for high-quality growth. M&A transactions are mostly concentrated in new quality productive forces such as semiconductors and biomedicine. Hygon Information Technology Co., Ltd. aims to merge with Dawning Information Industry Co., Ltd. through a stock swap, optimizing its industry layout from chips to software and systems, pooling high-quality resources in the industrial chain, and enhancing the "strengthening, supplementing, and extending" effects on the semiconductor industry chain.
Many companies that disclosed their plans in the early stage are progressing smoothly. United Nova Technology Co., Ltd. has completed the review inquiry response to the acquisition of Xinlian Yuezhou Integrated Circuit Manufacturing (Shaoxing) Co., Ltd., and review inquiries for several M&A transactions have been issued. Review inquiries for five projects have been issued, including Guangzhou Hexin Instrument Co., Ltd.'s acquisition of Shanghai Liangxi Technology Co., Ltd. Along with two other projects, this transaction has been approved by the General Meeting and is now awaiting application.
Intra-Industry M&A facilitate robust cooperation among companies listed on the SSE STAR Market
On May 29, Wuhan Lincontrol Automotive Electronic Systems Co., Ltd. acquired AECS by issuing shares and paying cash. Both are leading companies in automotive power electronic control systems. After the transaction is completed, the two parties will form synergies in the market, supply chain and technology, reduce costs, expand overseas markets, and enhance the ability to realize domestic substitution of engine management systems.
Upstream-downstream synergy helps companies listed on the SSE STAR Market consolidate industrial position
Recently, Jiaxing ZMAX Optech Co., Ltd.'s acquisition of 51% shares of DayOptics, Inc. was approved by the General Meeting. Both Jiaxing ZMAX Optech Co., Ltd. and DayOptics, Inc., belong to the optical and optoelectronics industry chain. DayOptics, Inc., as a "specialized, sophisticated, distinctive and innovative" company, can provide core optical components. In addition, it has also established stable cooperative relations with well-known domestic and foreign customers in various subdivided application fields such as industrial lasers, semiconductor equipment, and biomedicine. The two parties have achieved supply chain collaboration and complementary advantages by relying on upstream-downstream synergy.
The above information is provided for reference purposes only and does not constitute investment advice.