On the evening of April 25, NVC Lighting (02222.HK) announced that the company entered into a legally binding agreement with Jadestone China High-technology Industry Investment Fund LP ("Jadestone") on April 25, 2018. Program (hereinafter referred to as the "Agreement Program"). Accordingly, the company intends to acquire 100% equity of Yixun (Hong Kong) Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Yixunâ€) to Jadestone for RMB900 million. The terms of the agreement and the conditions and conditions of the proposed acquisition agreement will be subject to the signing of the formal share purchase agreement by the parties. Upon completion of the proposed acquisition, the Target Company and its subsidiaries will become wholly-owned subsidiaries of NVC Lighting. According to the announcement, Yixun was wholly-owned by Dehao Runda before the transaction, and Dehao Runda is also a major shareholder of Yixun, holding 24.30% of the equity. As is known to all, Dehao Runda is principally engaged in the production and sales of small household appliances and LED products in China. As early as December 2016, Dehao Runda sold the entire equity of Yixun to Jadestone for RMB190 million. Jadestone also agreed to repay the debts that Yixun owed to Dehao Runda and its subsidiaries of approximately RMB377 million. Also, past transactions were completed on December 30, 2016. So, what kind of company is Yi Xun? It is understood that Yixun was established in Hong Kong on May 31, 2010. Its main business involves the design, manufacture and sale of LED lighting products to the North American market. Yixun Optoelectronics is headquartered in Hong Kong and has offices in Chicago and Atlanta, USA. The plants are located in Zhuhai and Wuhu, China. Since its inception, Yi Xun has been designing, manufacturing and selling lighting products for the North American market for about six years and has established long-term relationships with major retailers and distributors such as Home Depot, Rexel and Graybar. In particular, Yi Xun has been awarded Home Depot's Global Supplier of the Year for four consecutive years. NVC Lighting is a leading supplier of lighting products in China, engaged in the design, development, production, marketing and sales of various lighting products, with particular emphasis on energy-saving products. In the past two years, as some metal raw materials, components and labor costs continue to rise, the profit margin of lighting products manufacturers has been compressed. In order to enhance its core competitiveness and achieve sustainable development, NVC Lighting has developed a strategy of gradually transforming from manufacturing to channel-based enterprises in 2018. In addition, NVC Lighting disclosed in its 2017 business announcement that the company is expanding its business to international markets such as Europe, the Middle East, Southeast Asia and South America. At the same time, due to the huge lighting market in North America, NVC Lighting has always wanted to enter this market. However, to enter this market, you need to have a local operating team, have a deep understanding of the local market conditions, and make long-term capital and labor investment. Therefore, the above needs to limit the expansion that NVC lighting hopes. Undoubtedly, the acquisition of Yi Xun has made it possible for NVC Lighting to enter the North American market and increase its overseas sales. In addition, NVC Lighting can also learn from the successful experience and feasible business model of the Yixun management team when establishing business in other overseas markets. However, despite the acquisition of Yi Xun, can NVC Lighting enter the North American market as it wished? Especially in the context of the continuous escalation of the Sino-US trade war, the results remain to be verified. The Sino-US trade friction provoked by the United States, from $3 billion to $50 billion to $100 billion in tariffs on related products, is getting bigger and bigger. On April 4th, the United States announced a list of products that would increase tariffs on Chinese exports, including LED (light-emitting diode) components, although this time more involved in the middle and upper reaches of the LED. At present, the Sino-US trade war is in full swing and the situation is not very clear. Once the Sino-US trade war is fully upgraded, it is not clear whether the United States will once again expand the range of products that increase tariffs on Chinese exports. In the context of the continuous escalation of the Sino-US trade war, NVC Lighting intends to enter the North American market through the acquisition of Yi Xun, which should have an impact in the short term; but in the long run, it is indeed conducive to achieving its global strategic layout. 60V Battery Pack ,Battery Pack With Outlet,Back Up Battery Pack,Ev Battery Pack Zhejiang Casnovo Materials Co., Ltd. , https://www.casnovo-new-energy.com