Just now, Xinye "joined hands" with Lierda!

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Today, Xin Shiye learned that Xinye Electronics (Hong Kong) Co., Ltd., a subsidiary of Xinye Group, and Lierda Technology (Hong Kong) Co., Ltd. have reached a cooperation agreement to jointly establish a joint venture company that will be mainly responsible for the sales of semiconductors, passive components, electronic connectors and other related products in the Hong Kong and Chinese mainland markets, as well as exploring the possibility of other potential businesses.

According to the latest announcement of Xinye Group, the newly established Hong Kong joint venture Zhongxinye Electronics (Hong Kong) Co., Ltd. holds 49% of the shares, while Lierda Technology (Hong Kong) Co., Ltd. holds 51%. The following is the original announcement:

*The above announcement comes from the SGX (Singapore Stock Exchange) website

It is understood that Xinye Electronics (Hong Kong) Co., Ltd. is a wholly-owned subsidiary of Xinye Group. Lierda Group is mainly engaged in the distribution, design and manufacturing of semiconductors, passive components, electronic and connector products. Regarding this cooperation, Xinye Group said that it will help the group expand its product line and customers, which is a good supplement to the group's core business of electronic component distribution.

The electronic component distribution industry has been undergoing constant changes in recent years. In addition to the increasing competition and the entry of Internet giants, the distribution strategies of upstream original manufacturers have also been constantly adjusted. Among them, Xinye Electronics has unfortunately become the victim.

In September 2018, TI (Texas Instruments) kicked Xinye Electronics out of its agent list, leaving only four agents: Avnet, Arrow, WT Microelectronics and World Peace. As soon as this news came out, there was an uproar in the industry.

Some people are indignant about Xinye: "Xinye has built a strong foundation for TI and made great contributions, but now it is being abandoned?" There are also different voices saying: "Business is business, and there is no need to let emotions get in the way. TI's strategy is to go the direct sales route, and agents should not stick to the old ways!"

Regarding this incident, Xinshiye also did an in-depth report: TI’s “open conspiracy”!

Regarding the cancellation of its agency rights by TI, Xinye also responded in an internal email, saying that it will actively face it and jointly deal with the sudden change.

Image source: Internet

Although TI cancelled its agency rights, according to the agreement between the two parties, the cooperation between Xinye and TI will not end until December 31, 2018. After that, how Xinye will deal with TI's business has also become a focus of the industry. During this period, it was also reported that Arrow Electronics would acquire some TI stocks held by Xinye for US$3 million.

*The above announcement comes from the SGX (Singapore Stock Exchange) website

However, according to the announcement of Xinye Electronics on December 14, 2018, Xinye did transfer TI's business to its authorized distributor, but did not specify the transferee. According to the Business Transition Agreement (BTA) signed by Xinye and TI, TI has agreed that Xinye will transfer TI's distribution business no later than June 30, 2019.

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*This article is original by Xin Shiye, some pictures are from the Internet, and the copyright ownership has not been verified. It is not for commercial use. If there is any infringement, please contact us at info@gsi24.com.