MLS plans to acquire 18.77% stake in PURE Optoelectronics.

On July 5, MLS issued an announcement regarding its overseas investment and equity purchase, stating that its German subsidiary, LEDVANCE GmbH, plans to use its own funds or self-raised funds of approximately RMB 256 million to purchase 18.7722% of the equity of its investee company, PURE Optoelectronics (Xiamen) Co., Ltd. (hereinafter referred to as "PURE Optoelectronics").

The company plans to acquire an 18.77% stake in PURE Optoelectronics for RMB 256 million . Specifically, PURE Optoelectronics, formerly known as Kaifajing Lighting (Xiamen) Co., Ltd. (hereinafter referred to as "Kaifajing"), was established in 2011 with a registered capital of RMB 300 million. The company positions itself as a leading enterprise in the LED patent device industry and an important supplier of semiconductor power devices.

PURE Optoelectronics' business scope covers the research, development, manufacturing, and sales of LED epitaxial chips, packaging (SMD, COB), phosphors, power devices, and lighting modules. It owns two internationally renowned LED brands: "Bridgelux" and "Intematix." In the first quarter of this year, PURE Optoelectronics achieved revenue of approximately 448 million yuan and net profit of approximately 11.0362 million yuan.

In terms of products, PURE Optoelectronics has also entered the field of elderly-friendly lighting, which is currently a key focus of the LED lighting industry. At the Guangzhou International Lighting Exhibition in June this year, it created a health and wellness lighting experimental space and adopted an upgraded Thrive™ natural spectrum technology. By optimizing the chip, phosphor and packaging process, it achieves a spectrum close to natural light and reduces the harm of blue light.

The buyer, LEDVANCE GmbH, was established on August 6, 2015, and its main business includes the development and manufacturing of lamps, lighting equipment, and optoelectronic products. Upon completion of this transaction, LEDVANCE GmbH will hold 18.7722% of the equity of PURE Optoelectronics, becoming the third largest shareholder of PURE Optoelectronics.

MLS stated that this equity purchase will deepen the company's collaboration with PURE Optoelectronics in technology, supply chain integration, and market linkage, thereby enhancing the technological content and market competitiveness of its products and laying a solid foundation for the company's sustainable development.

MLS has increased its investment in PURE Optoelectronics (developing crystals) multiple times.
A closer look reveals a close equity partnership between PURE Optoelectronics and MLS.

Back on July 20, 2015, Development Crystal's holding subsidiary, PwC, signed an agreement with FORTIS ADVISORS LLC to acquire 100% of the equity of BridgeLux, a US company, for US$130 million. After the acquisition, Development Crystal indirectly controlled BridgeLux's patents and technologies by holding a controlling stake in BridgeLux.

In September of the same year, Mulinsen issued an announcement stating that it would invest 180 million yuan to develop Jing, acquiring a 10.91% stake in it.

At the time, MLS's announcement indicated that PREE Optoelectronics, Inc. held over 750 patents globally related to LED chips and packaging, and also had a cross-licensing agreement with Cree (CREE.O). Its high-power, high-brightness LED packaging technology was on par with Cree, Philips, and Citizen. This investment was expected to positively impact the company's brand image.

In June 2016, MLS invested another 300 million yuan in Development Crystal, increasing its shareholding to 25.50%.

Currently, MLS is the fourth largest shareholder of PURE Optoelectronics, holding 17.3369% of the shares. If the 18.7722% stake acquired by LEDVANCE GmbH is added, MLS will hold a total of 36.1091% of PURE Optoelectronics' shares.

Post-transaction equity structure of PURE Optoelectronics

Following the completion of the transaction, MLS is expected to be better positioned to develop overseas markets, leveraging the technological and patent advantages of PURE Optoelectronics, as well as LEDVANCE's channels and brand influence in overseas markets, to further enhance its competitiveness in the global market.

In 2025, MLS made several acquisitions . MLS engages in LED packaging and lighting applications within the semiconductor lighting industry, with products covering general lighting, smart lighting, landscape lighting, automotive lighting, and other fields. In terms of brand portfolio, MLS owns two major international brands, "LEDVANCE" and "SYLVANIA," as well as several other brands including "木林森" (Mulinsen), 光光世家 (Light Source Family), and 空净视界 (Air Purification Vision).

In 2017, MLS acquired LEDVANCE (formerly Osram's general lighting business), the world's second-largest general lighting brand. The following year (2018), MLS's total revenue and total assets saw significant growth, with revenue reaching RMB 17.952 billion, a year-on-year increase of 119.76%, and net profit reaching RMB 720 million, a year-on-year increase of 7.75%.

Today, MLS has achieved a global strategic layout, with overseas revenue of RMB 10.015 billion in 2024, accounting for nearly 60% of total revenue. Among them, the "Landvance" brand accounts for the largest share, at RMB 9.647 billion.

In early 2025, Ledvance announced an acquisition agreement with LOBLICHT, a German lighting brand known for its high-quality design products. LOBLICHT primarily provides solutions for workspaces, modern office environments, and public spaces. This acquisition marks a significant step for Ledvance in the field of lighting engineering.

In addition, in order to seize the emerging market of aviation lighting, MLS established an aviation lighting division in December 2024, extending the company's technological advantages in the field of LED lighting to the aviation field.

In January of this year, MLS announced its intention to acquire a 51% stake in Xinhang Technology. The two parties will jointly carry out cooperation in low-altitude lighting and aviation lighting. After the acquisition is completed, MLS will support Xinhang Technology's independent listing when conditions are ripe.

Looking back, MLS's move is closely related to the development of the LED lighting industry in recent years.

The "2024 Global LED Lighting Market Analysis - 2H24" (Read the report>) analysis points out that the LED general lighting industry is experiencing "consumption downgrade". The current situation of both volume and price decline not only affects the growth expectations of the LED general lighting industry, but also forces traditional lighting industry players to re-examine their market strategies and focus on more promising niche application areas.

Clearly, MLS's series of actions are a proactive response to industry changes and a search for new growth points. With the increasing prevalence of low-altitude flight equipment such as drones and small aircraft, and the growing demand for efficient and safe lighting equipment in the aviation industry, the low-altitude lighting and aviation lighting market is gradually developing, leaving ample room for growth for companies with technological strength.

Summary <br /> In fact, MLS's series of acquisitions are a proactive attempt to achieve transformation and upgrading and expand into emerging markets in the current market environment. If it can effectively integrate resources from all parties and give full play to synergies, these acquisitions will bring new growth opportunities to MLS and further consolidate its position in the LED lighting industry.

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