"In March 2018, dongshan precision released the asset purchase plan again, and planned to acquire the relevant entity (Multek) of FLEX's PCB manufacturing business for us $292.5 million."
When it comes to LED packaging, it is natural not to open the dongshan precision.
Today, however, dongshan is a huge, publicly traded company that spans everything from printed circuit boards to electronics and communications equipment.
Recently, dongshan precision in the circuit board business has successfully achieved a major boost.
According to the data shows, dongshan precision listed in 2010 after successful, began to strategic development, industrial structure created by LED encapsulation, the printed circuit board electronics business, has now formed in printed circuit board, electronics and communications equipment for the business world.
Is also used on the market opportunity, dongshan precision by investing in a new and merger, acquisition and reorganization to realize the electronics and printed circuit board business strategic layout, establish and improve to meet the requirements of the future development target and industry management system, improve the management level.
So far, dongshan precision has become the world's top five flexible circuit board manufacturers, industry one of the famous base station antenna communication equipment parts suppliers, LED in part small spacing niche market share first.
Dongshan precision achieved 15.39 billion yuan in operating revenue in 2017, up 83.14 percent year on year, according to the high-tech LED's financial report.
Among them, the operating revenue of LED and its display devices was 3.278 billion yuan, accounting for 21.30% of its total revenue, an increase of 30.76% over the previous year.
The operating revenue of printed circuit boards reached 6.39 billion yuan, an increase of 224.35 percent over the same period last year, accounting for 41.52 percent of the total operating revenue.
Enter 2018, dongshan precision continue to constantly optimize the business structure, after TV OEM business, low gross profit margin of the touch panel and LCM module business is expected to shed, and LED part is the main development high gross profit margin of the small spacing shows that encapsulate business.
Dongshan precision said, the future will use its own years of experience and advantage, to the upstream or downstream industry chain extension, continue to do big, do strong, existing industries, through constant innovation to implement industrial upgrading.
When it comes to industrial upgrading, we have to mention dongshan's acquisition of multi-fineline Electronix, Inc.(MFLX).
As early as 2016, dongshan precision succeeded in acquiring 100% equity of MFLX company with 3.984 billion yuan, becoming its indirect wholly owned subsidiary.
After one year's development, in 2017, MFLX has a remarkable research and development capacity in new energy vehicle FPC products, which has won high recognition from customers.
In March 2018, dongshan precision issued the asset purchase plan again, and planned to purchase the PCB manufacturing business related to FLEX (Multek) for us $292.5 million.
It is understood that Multek main products are rigid circuit board (HDI) and the combination of hard and soft board, is mainly used in telecommunications, consumer electronics, automobile and medical fields, Ericsson, cisco, Google, ford and other high-end customers.
And dongshan precision FPC soft board is mainly used in consumer electronics, apple and other high-end customers, after the completion of the acquisition, dongshan precision to realize the diversity of circuit board products cover, two pieces of business can better complementary advantages, and mutual penetration.
It is worth noting that although Multek has good technical capability and customer resources, its profitability is still low.
According to the data, Multek's gross profit rate in January 2015, 2016 and September 2017 was only 14.4%, 11.8% and 11.9%, which was still far behind similar enterprises in China.
At the same time, some of Multek's factories are still operating at low capacity.
But the personage inside course of study thinks, dongshan precision after completion of the acquisition, Multek is expected to be like before buying MFLX, through integration of management, internal authors synergies, capacity expansion and strengthening customer relationships, to achieve profitability increase greatly.
Dongshan precision said that in the second half of the year, new big customers are expected to achieve sales, we will benefit significantly and achieve rapid growth.
In addition, dongshan precision FPC soft board business to enhance comprehensive strength, won the focus of the large customers support, in 2019 the new machine in the big customer stand-alone value is expected to continue to improve, to the most expensive soft board module development.
There is no doubt that the industrial integration of the next city, dongshan precision circuit board business will be added.
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