Recently, an announcement released by Suzhou Dongshan Precision Manufacturing Co., LTD. (hereinafter referred to as "Dongshan Precision"), a leading Chinese electronics manufacturing company, shows that The wholly-owned subsidiary of the company, Chao Yi Group (Hong Kong) Co., LTD., intends to acquire 100% of the shares of Source Photonics Holdings (Cayman) Limited (hereinafter referred to as "Source Photonics"), and simultaneously subscribe for its convertible bonds, with a total investment of no more than 5.935 billion yuan. If the transaction is successfully completed, Source Photonics will become a wholly-owned subsidiary of Dongshan Precision.

Dongshan Precision Introduction: As an enterprise with foreign capital background, Source is a leading company in the field of optical communication, specializing in the design, development, manufacturing and sales of optical communication modules and components. Its products are widely used in multiple key fields such as data centers, telecommunication networks, and 5G communications, and it has rich customer resources and high market recognition worldwide.

Through this acquisition, the company can quickly enter the optical communication market, leverage Source Photonics' technological and market advantages, improve its strategic layout in the electronic information industry, expand new business growth points, and enhance its comprehensive competitiveness in the global electronics industry. Dongshan Precision said.

As an important player in the electronic manufacturing field, Dongshan Precision's main business covers three major sectors: electronic circuits, optoelectronic displays, and precision manufacturing. It is one of the world's leading suppliers of FPC (Flexible Circuit Board) and LED backlight modules, as well as a leading manufacturer of printed circuit boards and metal structural components for new energy vehicles in China. It is also actively expanding into the touch display field. As of the time of publication, the company's total market value has reached 57.57 billion yuan.

According to the announcement of Dongshan Precision, this transaction adopts a dual-track model of "equity acquisition + convertible bond subscription". Specifically, the acquisition price for 100% of the shares of Source Photonics does not exceed 629 million US dollars. The consideration for the acquisition of its Employee Stock Option Incentive Plan (ESOP) equity does not exceed 58 million US dollars. Meanwhile, to support the daily operation of Source Photonics and repay its existing debts, Dongshan Precision plans to subscribe for no more than 1 billion yuan of convertible bonds.

Financial data shows that as of the end of March 2025, Source Photonics' total assets were 3.517 billion yuan, and the owner's equity attributable to the parent company was 1.155 billion yuan. In 2024 and the first quarter of 2025, the company achieved operating revenues of 2.932 billion yuan and 975 million yuan respectively, and net profits of 405 million yuan and 157 million yuan. As of the end of last year, Source's net assets were approximately 1 billion yuan. As assessed by the income approach, as of December 31, 2024, the market value of all equity of Source as of the assessment base date was 4.56 billion yuan.

Some analyses point out that in the long run, if Dongshan Precision can successfully integrate the technical and market resources of Source Photonics, it will establish a dual-wheel drive model of "PCB manufacturing + optical communication devices", significantly enhancing its position in the electronic information industry chain.

In fact, over the years, Dongshan Precision has continuously expanded its business territory through multiple acquisitions. For example:

In 2016, the company acquired MFLEX and entered the flexible circuit board (FPC) market.

In 2018, the acquisition of Multek, a subsidiary of Flextronics, significantly enhanced its design, manufacturing and global service capabilities in the high-end printed circuit board (PCB) field.

In 2022, it acquired Suzhou Jingduan, a subsidiary of JDI, and intensified its layout in the field of new energy vehicles.

In May this year, Dongshan Precision quickly entered the European automotive market, especially in the field of new energy vehicles, by acquiring 100% equity of Groupe Mecanique Decoupage (GMD Group), a French automotive parts manufacturer.

These acquisition measures have helped Dongshan Precision achieve business diversification and global expansion, making it a world-leading provider of intelligent interconnection solutions and significantly enhancing its overall competitiveness and risk resistance capacity.

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