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LED Industry Mergers And Acquisitions This Year, Nearly 30 Of Merger Cases Occurred Frequently

Feb 07, 2017

 recent LED stadium lights industry mergers and acquisitions frequently occur: Guangdong Province Electronic Information Industry Group 2.62 billion over Osram Foshan Lighting 13.47% stake held; HC SemiTek 1.08 billion yuan wholly acquired aquamarine Technology; Feile Audio-Visual proposed acquisition Osram lighting projects; Optical going to spend on the ground $ 100 million to take over Philips held Lumileds' 6.15% stake \u0026 hellip; \u0026 hellip; Although the popularity of LED lighting dawn strike through, but prices fell sharply, profit levels drop sharply, the LED stadium lighting industry consolidation and restructuring climaxes. Incomplete statistics, so far this year, nearly 30 of merger cases, the overall acquisition of more than 28 billion yuan of funds; and the case of mergers and acquisitions have more frequent occurrence, one after another. backpfrontp Unlike in the past, the industry's profits to the bottom, so that some multinational companies are down-hearted, Osram, Philips and other multinational giants to shrink the front in the field of LED lighting, it is a great opportunity for Chinese enterprises rise. Industry experts predict that China LED tunnel lights companies will be more and more cross-border mergers and acquisitions in the future. backpfrontp LED low profit era backpfrontp LED industry has entered the era of meager profit, as industry consolidation provides ample power. Countries China, the United States are in the process of speeding up the phase-out of incandescent, LED lighting prices continue to decline, like 40W of LED has dropped to $ 4.9, LED lighting time has come. LED industry consolidation progressive peak of 2015 domestic LED high bay lights output value will reach 430 billion yuan, the growth rate reached 27%, but the intense competition in the industry, especially in LED packaging, applications, industry concentration is low, to provide the necessary consolidation conditions. backpfrontp Foshan Lighting has been known as China Light King. However, the first half of 2015, operating income of 1.52 billion yuan Foshan Lighting, edged down 1.21 percent year on year, net profit of about 100 million yuan, down 46.94 percent. One reason for the decline in performance should be the transfer of Osram Foshan Lighting equity. backpfrontp September 9, Foshan led arena Lighting announcement, Osram Foshan Lighting Holdings Limited to hold about 170 million shares of A shares, at a price of about 2.62 billion yuan, the transfer to the Guangdong Provincial Electronics and Information Industry Group. After completion of the transaction, Guangdong Province Electronic Information Industry Group will hold 13.47% stake in Foshan Lighting, becoming the largest shareholder of Foshan lighting. backpfrontp As one of the leading enterprises in the lighting industry, Foshan Lighting this year and Linsen (002,745), Op and other companies together, at significantly lower prices LED products, accelerate the popularization of LED lights, and continue to expand market share in LED lighting. Its LED lamp prices have dropped 10 yuan less, so revenue and profits are also affected. backpfrontp However, under SASAC's Guangdong Province, Guangdong Province, Guang Sheng Electronics Information Industry Group, or another domestic LED tennis court lights listed companies in the country star power (002,449) of the actual controller. After Guangdong Province Electronic Information Industry Group has become the largest shareholder of Foshan lighting, Rising from the package is expected to open up, to channel the LED lighting industry chain. Another evidence backpfrontp profit era, the data Engineering LED Industry Research Institute show that from January to June this year, the domestic LED sales increased by 100% year on year, but sales increased by only 10%, because the price of the main LED products declined 50%; in August this year, Chinese exports amounted LED down from 10 percent in July, exports did not fall, because falling prices, leading 1000W led flood light exports decline. Zhang standard backpfrontp Engineering Financial Services Project Director believes that mergers and acquisitions are now different from before, whether acquired or to be acquired before both parties to live more moisture; now the acquisition is \u0026 lsquo; \u0026 rsquo ;, integrate some were acquirer is not live, some had thought, but not on the listed market, even though three new board will melt not money. backpfrontp four acquisitions directions backpfrontp Engineering LED Industry Research Institute, according to data from the beginning of the year so far, LED industry, there were nearly 30 cases from the merger integration, the overall amount has been more than 28 billion yuan merger. Divided into horizontal mergers and acquisitions to enhance the core competitiveness, optimize the industrial chain complementary acquisitions, cross-border mergers and acquisitions to find new profit growth point, to go abroad for better cross-border mergers and acquisitions and other four categories, the ratio of 6:13: 4: 5. backpfrontp horizontal mergers and acquisitions, such as this year Ruifeng power (300,241) to 200 million yuan acquisition of 85% stake Ling Tao Optoelectronics, expand small high power LED flood light packaging business, to consolidate his position in the field of LED packaging; complementary acquisitions, such as HC SemiTek upstream acquisitions Sapphire Technology Enterprises aquamarine; cross-border mergers and acquisitions, such as Lehman photoelectric actual control of Iron Man Lee proposed by the holding company set up in Hong Kong contributed no more than 25 million euros and the Wanda Group, IDG, the Chinese Cultural Foundation, the Oriental Pearl (600637), and other common parties involved in equity investment group, Lehman photoelectric half revenue fell 16.38%, which is now expanding from the stadium LED flood light screen to the sports industry to seek new growth. backpfrontp In addition, cross-border mergers and acquisitions increased significantly intention. With the LED lighting industry profit levels continued to decline, which in the eyes of multinational companies, from meat and potatoes has become tasteless. Like Osram Foshan Lighting is not only the sale of shares held by the field itself is also part of the LED tunnel lights fade. backpfrontp Feile Audio-Visual September 10 announcement said, intends to acquire its Osram lighting business, the company was officially July 22 OSRAM Langti acquisition of its lighting business to pay a non-binding letter. Feile Audio-Visual has set up an experienced international team to support the potential acquisition opportunities, but the acquisition of lighting business Osram final agreement has yet to be reached in the future for further discussion. backpfrontp there is a contraction in front of giant Philips. Kingsun September 18 announcement said, intends to spend 100 million US dollars (about 655 million yuan), 6.15% of its holdings to the acquisition of Philips Lumileds (Chinese name Liang Rui commerce) company. backpfrontp Osram, Philips, the global lighting industry are one of the four King Kong, why in the LED lighting to accelerate the popularization of good background, we have to withdraw part of the LED business do? Zhang marked think, because it can not earn money. Price competition is too fierce, multinationals did not fight back, China is larger than the entire lighting industry before impact. Therefore, OSRAM LED lighting is ready to sell the business and distribution channels, own only lighting projects, RGB LED flood lights packaging business. backpfrontp four largest lighting company in 2014 and 2015 since the results are in decline, their traditional lighting business in rapid decline, but the income of LED lighting does not fully compensate. Zhang standard expects the next US company GE's lighting business, there is also the possibility of the sale. backpfrontp opportunities for Chinese enterprises rise backpfrontp 2014 top ten global LED stadium lights business, the basic swept by the Europe, America, Japan, Korea and China Taiwan enterprises, China's largest LED companies Sanan Optoelectronics (600703) can only placing him 11th bit. Patents, brand heritage, customer channels are cross-Terrier in front of mainland China LED companies need to cross the railing. backpfrontp Today, multinationals profits thinned LED down-hearted, it is a good opportunity for Chinese enterprises to upper level. This year, after being split Philips Corporation, Philips Lumileds Lumileds company has been renamed by the Jinsha River - Philips venture capital fund holding a 80.1%, Philips holds a 19.9% stake only. Kingsun want invested $ 100 million to acquire 6.15% stake in the company from Philips Lumileds hands, open up the upstream chip, packaging chain. On backpfrontp Kingsun in a research report that, compared to Europe and other developed countries, the Chinese LED enterprises, greater potential for emerging markets. In addition to emerging markets overseas, LED high bay lights market is rapidly growing emerging applications, including smart lighting, automotive LED, small pitch displays. The Lumileds, technical, customer resources, now is a good time shares. backpfrontp of Chinese LED industry a greater good in the upstream LED chip industry matures. Three safety optoelectronics, BDO Runda (002,005), HC SemiTek already among the world's nine major LED chip companies, and increasing the overall share, down LED chip of the present degree of increase and the price of land for Chinese LED midstream and downstream businesses It equipped with a more adequate bullets. backpfrontp September 11, HC SemiTek published reports, it intends to spend 1.08 billion yuan to acquire the entire share capital of Yunnan aquamarine technology companies, and has additional fund-raising 600 million yuan, so as to extend to the upstream sapphire business, improve the industrial chain. backpfrontp sapphire substrate is a raw material of LED epitaxial wafers, aquamarine sapphire substrate technology is set research and development, production and sales of high-tech enterprises. According to Zhang standard presentation, aquamarine science and technology has been planning an IPO for a long time, the process has gone half, but unfortunately encounter a bear, had instead sold to the listed company HC SemiTek downstream, in order to achieve indirect listing. The HC SemiTek this acquisition will enhance its position in the industry in the LED epitaxial wafers and chips fields. backpfrontp year, many LED listed in the first half net profit fell, Zhang standard view, the question now is not how much money is to survive. I expect the beginning of the elimination rate of domestic LED airport lights companies 10% this year, now estimated annual attrition rate will reach 20%, if the phase-out rate is 20 percent next year, it will mean more than 10000 LED enterprises in China, there will be 40 % -50% out of the market, which is about thousands of LED companies will be eliminated. backpfrontp Zhang standard is also expected that future expansion LED manufacturers will continue to further squeeze the living space of small businesses. LED technology is now mature, many companies mass production of LED products, small businesses will be more difficult. Expected in the fourth quarter of this year, LED price war will continue, small businesses only in the market segments in order to find a way out, such as the stage lights, lamps and the like. backpfrontp in this round of mergers and acquisitions, survival of the fittest wave of Chinese leading LED companies will Hengqiang, have the opportunity to become a global industry leader. In the first half of this year, three safety optoelectronics, country star power, the sun lighting (600261) and other listed companies continue to maintain revenue, net of double growth, can be seen. Standard, said Zhang, the future Chinese LED enterprises more and more cross-border mergers and acquisitions, cross-border M \u0026 A target companies from manufacturing companies to extend the service class. backp