Bomin Electronics (603936.SH) plans to acquire 86.85% of the equity of Benevision Electronics to address the production bottleneck of HDI during the peak season.

Bomin Electronics (603936.SH) announced that the company plans to acquire 86.85% of the equity of Meizhou Benchuang Electronics Co., Ltd. (referred to as "Benchuang Electronics") with cash not exceeding RMB 250 million. Upon completion of the acquisition, the company will hold 100% of Benchuang Electronics' equity, making Benchuang Electronics a wholly-owned subsidiary of the company. It is reported that Benchuang Electronics is one of the few local manufacturers in Meizhou with full-process capability for HDI boards. Its geographical location is close to the company, and it is a company with strong comprehensive strength in HDI technology and production capacity in the local Meizhou area. Especially in the HDI aspect, there are good prospects for synergistic development with the company in terms of business, customers, production capacity, etc., which can help alleviate the structural production bottleneck of the company in the peak season of HDI. On the other hand, acquiring Benchuang Electronics will help the company reduce the outsourcing procurement links in the production of some products, reduce the scale and cost of outsourcing services procurement, optimize and improve the efficiency and quality of the company's related product production. In 2021, the company initiated a new generation of electronic information industry investment expansion project (Phase I), which is expected to start production by the end of 2024. The project focuses on high-layer and HDI high-end PCB products, with applications in 5G communication, servers, industrial control, automotive electronics and other fields. Prior to this, the company faced certain structural production bottlenecks in high-end PCB products, especially in the server field, and needs to further secure the relevant production capacity of Benchuang Electronics to meet customer demands. Therefore, this acquisition is beneficial for the company to meet the product and capacity requirements of high-end customers before the completion of the new project construction, and to advance reserve customer resources and orders in the relevant product application fields for the construction and production of the new project.