LED industry bid farewell to the wave of mergers and acquisitions1

In the past, people in the circle asked each other if they had earned money. Now, everyone has asked if they have turned. The boss of an LED company said humorously. Most entrepreneurs believe that after two years of rapid development, the LED industry is about to bid farewell to the scuffle, and mergers and acquisitions will be a good way for enterprises in the fierce market competition. The above-mentioned corporate CEOs believe that the current wave of mergers and acquisitions in the LED industry is not only an opportunity for listed companies, but also an opportunity for unlisted companies. Although the ownership of the enterprise is handed over, the shareholder of the acquirer obtains the listed stock of the acquirer by reselling the equity, which is equivalent to the indirect listing of the enterprise. Moreover, in most merger cases, the original shareholders will not lose their management rights. However, listed companies obviously have more advantages in M & A activities. Lianjian Optoelectronics announced on September 26 that it acquired Shenzhen yishida Electronics Co. , Ltd. in the form of stock cash. The main business of yishida is LED display. It has previously planned an IPO, and the profitability of the company is not inferior to that of its peers. In the upstream of the industrial chain, LED chips have benefited from the rapid development of the Terminal LED lighting market. In the first half of this year, the market for LED chips is still continuing. In the middle of the industrial chain, there is little difference in technology among domestic LED packaging enterprises, but the only difference is the capacity scale of enterprises. Some companies integrate other small business resources through mergers and acquisitions to achieve the purpose of expanding production capacity. Gong Wen, general manager of Jingtai Co. , Ltd. believes that the decisive factors for the competition of packaging enterprises in the future will be management capabilities, cost control, scale and brand. In the downstream of the industrial chain, the LED Lighting Market 2014 as a whole is improving, but due to the homogenization of products, the competition of lighting products is often limited to the price level. Some enterprises open up a competitive strategy of business alienation through integration with the upstream. For example, Hong Kong-listed Zhen Mingli has completed the integration with Tongfang's shares. In the view of Jiang Guangjun, deputy general manager of Zhen Mingli's domestic Center, from the development of the industry last year, LED lighting products will break away from pure price competition and turn to value competition of products. He said that the intelligent building/home lighting solution launched by Zhen Mingli this year is precisely the trend of smart city and the action to adapt to market development. Of course, M & A integration is not a panacea. The industry believes that mergers and acquisitions are not only the integration of the capital market, but also the integration of corporate culture. If the merger and acquisition parties fail to reach a unified goal, the merger and acquisition integration may bring negative effects, and they will face a situation between Dehao Runda and NVC Lighting.