Dec 13, 2016: Leading Chinese LED manufacturer Elech-Tech International (ETI) said that it will sell the company to Jadestone China High-technology Industry Investment Fund, and transfer all its international lighting business assets to its Hong Kong subsidiary.
Jadestone will acquire 100% shares in its Hong Kong unit for US $27.48 million (RMB 190 million).
Jadestone is an Exempted Limited Partnership investment firm, with a funding capital of about US$82.48 million (HK $640 million).
ETI (HK) generated a revenue of RMB 400 million in the first nine months of 2016. In 2015, it generated RMB 480 million with net profits of RMB 25.8 million. However, the Hong Kong subsidiary reported a a loss of RMB 5.41 million.
ETI has taken the decision to spin off its international lighting business to meet operation demands. This strategy of concentrating company resources would help it to focus on the lighting business in China. It estimates to generate a revenue of RMB 195 million in 2017.
ETI’s foundation in the LED industry was built on its LED chip technology. The company had invested significantly in LED epiwafer production. In 2013, it had acquired a stake in NVC Lighting, which had invested hugely in LED lighting.