Merger of TONG HSING ELECTRONIC IND., LTD. and Kingpak Technology Inc.
TONG HSING ELECTRONIC IND., LTD. (Stock Code: 6271, hereinafter referred to as TONG HSING ELECTRONIC IND., LTD.) and Kingpak Technology Inc. (Stock Code: 6238, hereinafter referred to as Kingpak Technology Inc.) held a board meeting today (December 27, 2019) to approve the share conversion. Upon the completion of the share conversion, Kingpak Technology Inc. will continue to be listed by TONG HSING ELECTRONIC IND. The conversion ratio is 1.244 ordinary shares of TONG HSING ELECTRONIC IND., LTD. for every 1 ordinary share held by the shareholders of Kingpak Technology Inc. Kingpak Technology Inc. will become a 100% owned subsidiary of TONG HSING ELECTRONIC IND. The base date of the share conversion is tentatively set at 30 June 2020.
TONG HSING ELECTRONIC IND., LTD. is a leading manufacturer of niche polycrystalline modules and optical components for packaging in Taiwan, and the largest manufacturer of Ceramic Metalized Substrate in Taiwan. Recently, the demand for CMOS image sensors has doubled due to the upgrading of smartphone specifications, such as multi-lens, 3D sensing and on-screen fingerprint recognition, which has led to significant growth in the imaging business.
Kingpak Technology Inc. is a leading packaging and testing company for automotive CMOS image sensors, with nearly 80% of its products used in automotive electronics. The company has been actively involved in the development of automotive CMOS image sensor products since its early days, and has already obtained certification from Tier 1 manufacturers in Europe, the US and Japan. In recent years, the company has been leading the industry in terms of market share, benefiting from the upgrading of in-vehicle lens quality and the booming trend of autonomous driving and advanced driver assistance systems.
CMOS image sensor is a very important element in the entire lens module. Recently, there are growing opportunities in high-end mobile phone lenses, 3D sensing, car networking, advanced driver assistance systems, drones, virtual reality and other applications, leading to the continuous expansion of the CMOS image sensor market. It is a key component of the entire lens module with high value.
The merger of TONG HSING ELECTRONIC IND., LTD. and Kingpak Technology Inc. is a strong alliance. By combining the excellent management team, R&D, production management and customer service resources of both companies, we will not only achieve the combined effect of complementing each other's product lines and customer base, but will also integrate technology and enhance the efficiency of production resources to continuously refine CMOS image sensor product technology. In line with Yageo Corporation Limited's group strategies in automotive electronics, industrial products, 5G and Internet of Things, TONG HSING ELECTRONIC IND. The Group's CMOS image sensors for consumer electronics and Kingpak Technology Inc. for automotive electronics are expanding their applications in the smart phone, Internet of Things, advanced driving, connected car, virtual and augmented reality markets, providing customers with more complete CMOS image sensor packaging and testing services to capture the key component market.