In 2015, under the background of the “new normal†of the global economy entering deep adjustment and rebalancing, the LED industry structure adjustment pains followed. Standing at the crossroads of industry development, LED lighting listed companies have chosen to exert their strength in the capital market, once again set off a new round of "mergers and acquisitions."
From the beginning of the year, the LED lighting industry mergers and acquisitions have emerged in an endless stream, whether it is horizontal integration or vertical extension, or "cross-border" acquisitions, the wave of mergers and acquisitions surge. With the rise of mergers and acquisitions and the exit of a number of small and medium-sized enterprises, the concentration of LED industry will be further improved in 2015. Leading enterprises with technological advantages and economies of scale will stand out in the industry competition.
Mergers and acquisitions, industrial integration and upgrading
Continuing the integration heat in 2014, the LED industry merger and integration continued to fertilize in 2015. Up to now, there have been more than 25 cases of LED industry mergers and acquisitions, and the amount is close to 30 billion yuan.
By the middle of the year, the merger of LED listed companies will not stop, and billions of acquisitions frequently appear. In June, Chau Ming Technology acquired a 40% stake in Redio, achieving 100% holding of Redio; Ruifeng Optoelectronics acquired an 85% stake in Lingtao Optoelectronics, cut into the LED backlight industry, and completed LED backlight business from large to small Coverage of size products; Lianchuang Optoelectronics 100 million yuan acquisition and increase of Zhejiang Fangda Zhikong Technology Co., Ltd., will hold 72.37% stake in Fangda Zhizhi; Alto Electronics plans to acquire 250% equity of Qianbaihui to increase LED lighting Business scale.
In July, Liard acquired an 81% stake in Mingji Electronic Technology (Beijing) Co., Ltd. after 1.62 yuan, and increased its capital of 55% to Huaneng Optoelectronics Technology (Shanghai) Co., Ltd. for 27 million yuan. It is worth mentioning that as early as January, Liard announced that it intends to acquire 100% of Lifeng Culture and 100% of Jinlixiang with a consideration of 890 million yuan. Through this acquisition, it will contribute to the LED culture media field.
In addition, Lehman Optoelectronics announced on the 13th that it plans to invest 230 million yuan to acquire 100% equity of Tuoqi Technology; Xiamen Xinda resumed trading on the 14th, and announced that its holding subsidiary Fujian Xinda Optoelectronics plans to acquire 75% equity of Haotian Optoelectronics; Guoxing Optoelectronics 14 On the day of the resumption of trading, it announced that it intends to acquire 100% equity of Guangdong Deyi with a maximum of RMB 250 million.
With the continuous maturity of the LED industry, the industry will face deep adjustment, the industry pattern is diverging, mergers and acquisitions will become more frequent, mergers and acquisitions, mergers and acquisitions will also become more diversified, LED industry mergers and acquisitions continue to ferment. In this regard, Zhou Yuanjun, general manager of Jingyuan Optoelectronics, said at the LEDinside meeting in June this year that the integration and reshuffle of enterprises in the LED industry chain has accelerated, and domestic LED downstream manufacturers have begun to fully integrate mergers and acquisitions. The LED industry can only continue to go on with continuous mergers and acquisitions.
Intention to patents, cross-border mergers and acquisitions into the norm
In 2015, affected by the global economic development, mergers and acquisitions have become a powerful means for LED companies to integrate resources. With the acceleration of the global integration process, Chinese LED companies have gradually turned their attention to higher and farther, and cross-border mergers and acquisitions have become an important way for Chinese national enterprises to enter the international market. Through cross-border mergers and acquisitions, we can not only gain core technology and management experience, but also quickly and effectively enhance the core competitiveness of enterprises, and also break through the threshold of advanced technology patents of foreign companies.
Among them, the most notable is the Jinshajiang Venture Capital Group's acquisition of Lumileds, a subsidiary of Royal Philips of the Netherlands. According to the Jinshajiang announcement, after the completion of the acquisition, Philips will transfer more than 600 patents on LED production and automotive lighting to Lumileds. In addition, Jinsha River plans to push Lumileds to the capital market and conduct IPOs in the international market, which is expected to create a leading enterprise in the industry.
Also, the acquisition of foreign well-known LED companies due to technology and patents is also the development of crystal. In July, Shenzhen Technology announced that its subsidiary, Jingjing Lighting (Xiamen) Co., Ltd., and strategic investors will jointly acquire Bridgelux, a LED chip, package and optical module product, for US$130 million (equivalent to RMB807 million). US companies in R&D and manufacturing operations currently have more than 750 technology patents on LED chips and packaging worldwide and are cross-licensed with Cree patents.
According to relevant sources, if the acquisition is successful, the development of crystal is equivalent to controlling the patent and interactive license owned by Bridgelux, involving vertical product integration from chip to module and development of silicon chip on GaN, mastering chips, epitaxial wafers, A number of core technologies, such as packaging, white light, and optical design, have entered the global high-end LED industry supply chain such as Europe, America, Japan and South Korea.
In addition, cross-border acquisitions are also beneficial for companies to develop international channels. For example, Huacan Optoelectronics Hong Kong's wholly-owned subsidiary has expanded its sales in the international high-end market by subscribing to the newly issued shares of Semicon Light of Korea Co., Ltd.; the company has acquired the “DURACELL†brand in China and North America through the acquisition of European L&D Company. External authorization, gradually landing in North America, Europe and other overseas markets. In addition, Feile Audio recently announced that it expects to acquire the channel business of Germany Osram's planned spin-off to obtain its world-renowned brands OSRAM and Sylvania and cover a huge sales channel in about 150 countries.
Cross-border people, complementary acquisitions
By counting the LED industry mergers and acquisitions in the first half of this year, it is not difficult to find that cross-border mergers and acquisitions have become the norm in this year's mergers and acquisitions, both LED industry cross-border and other areas, as well as "outsiders" to choose cross-border LED field.
With the development of the LED industry and the influx of large capital, competition has entered a stage of white-hot. In order to better resist market competition, enterprises must form an industrial scale, open up the industrial chain vertically, and benefit from scale. LED companies are no longer satisfied with a certain field of LED, but choose a deep industrial chain to produce and sell high value-added products. For example, Xiamen Xinda not only does LED lighting packaging and application, but also the LED display produced by Shenzhen Anpu Optoelectronics Technology Co., Ltd. is developing in the direction of high definition and high density. Another example is Dongshan Precision, which not only does LED devices, but also LED devices in the lighting industry and LED full color display industry, as well as small-pitch LED displays.
At present, most LED listed companies are not only engaged in one field of business. Many listed companies in the upper, middle and lower reaches of LED are diversified, and cross-border “doing business†has become the norm. It can be seen from the analysis that most of the listed companies that are mainly engaged in LED are cultural media companies, mobile internet, financial institutions or related service companies.
In terms of cultural media, LED display manufacturers such as Lianjian Optoelectronics and Liard are “unwilling to be lonely†and aim at outdoor media. In particular, Lianjian Optoelectronics, in order to better create the "Digital Outdoor Media Group", recently acquired the "Youto Public Relations" in the public relations industry and the digital communication industry, and the LED channel equipment manufacturers with abundant overseas resources. Easystar has formed a digital online and offline communication service platform from digital communication equipment production customization, brand public relations and digital marketing to outdoor media distribution network. The next goal of Lianjian Optoelectronics is mobile internet. The acquisition of Accurate Focus Media this year is the first step of its mobile internet.
In terms of finance, more and more LED listed companies are now involved in financial business. For example, Hongli Optoelectronics has increased its capital to Cayman Network for 10 million US dollars, thus indirectly involved in the Internet finance field. Yan Wei's financial institutions set up a supply chain financing platform and Qinshang Optoelectronics directly invested in Xiamen International Bank.
The big one is Evergrande, the global pattern is reshaping
For listed companies with an important position in the capital market, through active mergers and acquisitions, they can not only strengthen their comprehensive strength, but also drive industrial transformation and upgrading. In the LED market where industrial capital is continuously injected, mergers and acquisitions and industrial upgrading will accelerate the integration of the market and further increase the concentration of the industry. The technological advantages and scale effects of leading enterprises will also gradually become prominent in the integration. The LED lighting pattern is undergoing tremendous changes. .
In this industry merger with the LED listed companies, the industry resources are increasingly concentrated, it can be seen that the LED industry is accelerating the speed of survival of the fittest. LED listed companies do not expand the LED industry chain through vertical integration, or integrate horizontally into large enterprises or diversify through cross-border acquisitions, in order to reduce competitors, expand the original market share, or drill for larger market segments. The purpose of the market space. But for small and medium-sized enterprises, the high concentration of industry resources is squeezing their living space. Recently, Ai Biesen clearly stated in the agency research that the LED display industry has been accelerating in recent years, especially in the past two years. All listed companies have a certain degree of mergers and acquisitions, and the future industry will tend to be more Focusing on competition among several large companies, small businesses may have difficulty in survival, differentiated development or may be able to gain more living space for market segments.
At present, under the opportunity of continuous development and maturity of the LED lighting industry, integration will undoubtedly become an industry trend, and the situation of the larger ones and the stronger ones will be fully manifested. Whether it is for technology or channel integration, enterprises will further integrate the advantages of the industry chain, form a more mature business layout, and catalyze the formation of a new LED market structure. It is not difficult to foresee that in the next period of time, LED companies will welcome the LED lighting era of the arrow on the string with a new pattern and appearance.
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