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The acquisition proposal of Sunlong Bus is adopted in the Dongxu Optoelectronic shareholders’ meeting

通告时间:2017-07-05
Source:    

      The fourth annual interim shareholders’ meeting of Dongxu Optoelectronic Technology Co., Ltd. (Dongxu Optoelectronic, 000413.SZ) was held on June 26th, 2017.

      The proposal in which Dongxu Optoelectronic acquires a 100% stake in Shanghai Sunlong Bus Co., Ltd. (Sunlong Bus) for RMB 3 billion was examined and adopted in this meeting.

      Before this meeting, in March and May, Plans and drafts of the acquisition have been considered and passed separately in the boarding meeting of Dongxu Optoelectronic. Information shows that this acquisition proposal shall be submitted to the China Securities Regulatory Commission (CSRC) for approval after approval by adopted by the general meeting of shareholders.

      Sunlong Bus is one of the leading bus manufacturers in China. Sunlong Bus sold 216 buses in this April, rising 300% from a year earlier, and surpassed the famous bus manufacturers like Asiastar, ranking ninth in monthly sales. In the May, the company produced 372 buses, ranking third in electric vehicle monthly production, just behind the Yutong and Zhong Tong Bus.

      In fact, before the acquisition, Sunlong Bus has been on the upswing. So it can be said that the acquisition for Dongxu Optoelectronic is a treasure hunt action. The data shows that the annual revenues of Dongxu Optoelectronic was RMB1.6 billion and RMB 2.12 billion respectively in 2015 and 2016, increasing 31.78%, and the net profit attributable to owners of the parent company reached RMB196 million.

      After the acquisition, the development strategy of Sunlong Bus becomes more ambitious. Sunlong Bus signed a new energy vehicle production base investment agreement with Nanning Municipal Government to build a Science and Technology Industrial Park of new energy vehicles in Nangning. The project not only shows the ambition of Sunlong Bus, but also has great meaning to Dongxu Optoelectronic, since the subsidy policy for new energy vehicles is gradually consummating, and express-delivery business is growing fast, and logistic vehicle is attracting attention of  more and more companies.

      Additionally, some of the former regulations in subsidy for the new energy vehicles issued by the government may be adjusted. So it provides an opportunity for the new energy vehicle manufacturers to boost output and change the current status.

      “The new energy vehicle manufacturers are now transforming the  large-sized and medium-sized bus market which has been controlled by the three top bus manufacturers for a long time. Sunlong Bus, with the help of Dongxu Optoelectronic, is also working for the market transformation, and has great chance to become a leading company in this industry”, an insider said.