Wan Sixiang, the proposed controlling shareholder of AICA, increases investment in new energy

On November 19, AICA issued an announcement announcing that the company planned to purchase the controlling stake of Dongguan Sixiang Insulation Materials Co., Ltd. ("Dongguan Sixiang") by issuing shares and paying cash. In view of the uncertainty in this matter, the company's shares have been suspended from trading today. Information shows that Dongguan Silicon Xiang was established in 2008, and its legal representative is Yan Ruohong. The company’s main business includes overall thermal management solutions for new energy vehicle power batteries, flexible circuit integration, and other insulation and new material products. It is reported that Dongguan Silicon Xiang launched China's first power battery heating film in 2011. Today, its market share in the field of new energy vehicle power battery thermal management exceeds 70%, and it has become a major supplier to CATL, BYD, NIO, Audi and other companies. For this transaction to acquire the equity of Dongguan Silicon Xiang, AICA has signed a "Letter of Intent for Equity Acquisition" with Yan Ruohong, the largest shareholder of Dongguan Silicon Xiang (directly holding 31.34% of the equity of the target company). AICA stated that the company will disclose the specific plan for this transaction by December 3 at the latest. AICA continues to expand its new energy business
As relevant transactions continue to be implemented, AICA will continue to accelerate its deployment from LED lighting business to the new energy field. Founded in 2009, AICA mainly focuses on LED intelligent lighting and control system business. In the first half of this year, AICA’s LED-related business revenue was 239 million yuan, which is still the company’s main source of revenue. However, in the face of fierce competition and slow demand recovery in the LED lighting industry in recent years, AICA has also actively deployed new businesses across industries, with new energy-related businesses being its focus. As early as 2022, AICA announced that it would acquire 80% of the equity of Yongchuang Xiangyi, a lithium battery cell material company, for 192 million; In May 2023, AICA announced a 5 billion yuan investment project. The construction content includes module production, intelligent controllers, product research and development and intelligent control platform system development, high-power chips, new energy energy storage, etc.; In October of the same year, AICA established Shanghai AICA Tiancheng Energy Co., Ltd., with its business scope covering new energy technology research and development, power transmission and distribution equipment manufacturing, auto parts, battery manufacturing, and sales of new energy vehicle battery swap facilities. In April this year, AICA completed the acquisition of 64.87% equity of its holding subsidiary and automobile mold company Wuxi Shuguang, deepening the business layout of new energy vehicles. Today, AICA's new energy sector includes smart charging piles, self-developed smart charging systems, innovative light storage and charging integrated solutions, new energy battery auxiliary materials, automotive supporting parts and other businesses, which has become another important performance growth point of AICA in addition to the LED lighting sector. Summary
In addition to AICA's continued expansion of its new energy business, many LED lighting-related companies have chosen to expand their business outside the lighting field this year to look for more new opportunities. For example, the landscape lighting company Spacetime Technology acquired the storage company Jiahe Jinwei; the landscape lighting company Roman Co., Ltd. acquired the computing server company Wutong Hi-Tech; the LED drive power company Songsheng Co., Ltd. established a new company to layout the robot business; Looking to the future, as the profit margins in the general lighting field continue to shrink, it will become the norm for LED lighting companies to develop across borders into high-growth fields.