China Electric Manufacturing Corp. has announced its acquisition of GIO Optoelectronics Corp. in hopes to meet their operation goal of increasing LED lighting revenue share by 20 percent next year. The company announced yesterday its acquisition of 160 million shares at NT $ 0.8 per share with allocated funds reaching NT $83.9 million. Main shareholder of GIO, Chimei Corp. sold its 39.2 percent stake to China Electric and relinquished chairmanship. China Electric will join GIO in LED lighting product R&D, but will not interfere with the company’s operations.
With poor tablet manufacturing prices this year, China Electric has slashed backlight application prices. The company has therefore temporarily ceased OEM for backlight applications due to low profitability, leading to a drop in operation revenue for the year. October consolidated revenue reached NT $207 million, a yearly decrease of 63.24 percent. Consolidated revenue for the first 10 months of 2013 was NT $2.77 billion, a yearly decrease of 53.24 percent.
China Electric’s lighting brand TOA is a conventional lighting leader in Taiwan.