News Releases
Konica Minolta Announces Changes in the Equity Transfer Agreement with Luxvisions Innovation Technology for Optical Components Business
January 24, 2025
Tokyo (January 24, 2025) - Konica Minolta, Inc. (Konica Minolta) announced that the Company concluded an amendment agreement with Guangzhou Luxvisions Innovation Technology Limited (Luxvisions), a major Chinese electronic components company, to transfer 80% of the equity of Konica Minolta Optical Products (Shanghai) Co., Ltd. in the optical components business.
With this transfer, Konica Minolta Optical Products (Shanghai) Co., Ltd. becomes an affiliated company accounted for by the equity method of Konica Minolta. Due to this amendment, the transfer price is about 3.6 billion yen. The impact on Konica Minolta’s consolidated business performance in the second half of the year ending March 2025 is currently being examined. Any new items that should be disclosed will be notified promptly.
* The final loss due to this equity transfer is subject to change due to foreign exchange fluctuations and other factors. The exchange rate in this document is based on 1 Chinese yuan = 20 yen (planned rate).
Background of the Amendment
On October 26, 2023, Konica Minolta announced that the Company had concluded an agreement to transfer 80% of the equity of its two manufacturing subsidiaries in China to Luxvisions. However, an amendment agreement was concluded to transfer 80% of the equity of Konica Minolta Optical Products (Shanghai) Co., Ltd.
In the negotiations toward closing, a conclusion was reached that the initial objective of the alliance between the two companies would become clear through consolidation of the functions at Konica Minolta Optical Products (Shanghai) Co., Ltd. and acceleration of growth of enterprise optical units in the mobility and other fields by leveraging mutual strengths. Konica Minolta Opto (Dalian) Co., Ltd. will consolidate the production of non-Industry lens units, which Konica Minolta continues to sell, in stages to increase the production efficiency. This way, the role of Konica Minolta Opto (Dalian) Co., Ltd. will be reorganized to enhance profitability.
Through these measures, Konica Minolta will promote its Medium-term Business Plan which aims to transform the structure of the optical components business.
* News release dated October 26, 2023 “Konica Minolta Concludes Strategic Alliance Agreement with Luxvisions Innovation Technology for Optical Components Business”
https://www.konicaminolta.com/global-en/newsroom/2023/1026-01-01.html
Initial plan
After amendment
OC: Optical Component Business Unit
ODC: Konica Minolta Opto (Dalian) Co., Ltd.
OMS: Konica Minolta Optical Products (Shanghai) Co., Ltd.
Purpose of the Alliance
- Transform Konica Minolta's optical components business into a sustainable, high-profit business. This is also part of its Medium-term Business Plan to accelerate the expansion in the mobility, inspection and other Industry fields.
- Optimize the structure to accelerate the growth of the enterprise optical unit business in the mobility field by combining Luxvisions’ wide-ranging global customer contact points, centered on the mobility field, along with its manufacturing capabilities based on thorough automation and modularization technologies, and Konica Minolta's core technologies, such as optical design capability, high-level production technologies, and unit assembly technologies.
- Provide new value in response to the evolution and diversity of customers by delivering key components to the Industry field such as mobility and inspection, and by feeding back to Konica Minolta's materials and processing technology development the information obtained from Luxvisions’ wide-ranging customer contact points through its initiatives aimed at expanding the enterprise domain including mobility and related infrastructure.