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Gree to invest in Wingtech structure to access Nexperia
Posted on Tuesday, 04 December 2018 14:53
Gree Electric is gaining exposure to the semiconductor sector by becoming a significant investor of two subsidiaries of Wingtech Technology, which in turn is acquiring a multi-billion-dollar majority stake in Nexperia Holdings. The Netherlands-based chip maker was originally part of television and electronics manufacturer Philips; it then became part of NXP before separating into its own independent company in 2017. Nexperia core downstream customers are in the auto industry, though its business spans mobile and wearable devices, industrial and telecom infrastructure, consumer electronics and computers. The Nijmegen-headquartered company produces 90.00 billion components annually, and some of its largest clients include Apple, Huawei and Samsung Electronics, according to the website. Meanwhile, Gree started expanding into the smart industry in 2013 but intends to use the investment in Wingtech to support the expansion into, and the development of, smart equipment and 5G technology to achieve steady growth. The deal will also give the household appliance powerhouse exposure to the semiconductor industry via Nexperia. Gree will inject a total CNY 3.00 billion (USD 432.30 million) in Hefei Zhongwen Jintai and Zhuhai Ronglin through a share subscription worth CNY 885.00 million and CNY 2.15 billion, respectively. The company is diversifying revenue streams to offset a slowdown in China’s home electronics market following a sharp hike in fiscal 2017. Its top line reached CNY 148.29 billion in the 12 months ended 31st December 2017, up from CNY 108.30 billion in FY 2016, and net profit attributable to shareholders totalled CNY 22.40 billion (FY 2016: CNY 15.53 billion). Revenue and net profit for the first nine months of 2018 amounted to CNY 148.70 billion and CNY 21.12 billion, respectively. © Zephus Ltd