[Source: "High-tech LED" magazine December issue (total 60th issue) Wen | reporter Zhao Hui] "This is the best era, this is a worst era; this is a bright era, and It is a dark age." - Dickens "The Tale of Two Cities."
This description is used to describe the current industry turning point in the LED industry.
In 2014, the LED industry mergers and acquisitions continued to heat up.
"By taking advantage of the potential of capital, to showcase the LED industry", this is already an important way for LED companies, especially the listed companies in the LED industry. "Listed companies actively use capital operations to accelerate development, is already the trend of the times." A LED listed company secretary told the "High-tech LED" reporter.
Moreover, the policy environment is also conducive to the merger and reorganization of the LED industry. Since last year, the State Council has issued a number of policies to support mergers and acquisitions, and the CSRC has also actively optimized the approval procedures for mergers and acquisitions.
From the market environment, the LED lighting industry is also shuffling. This year, many companies, including Sichuan Yuanli and Zhongshan Fengguang Lighting, lost their joint ventures and closed down. At the same time, Samsung LED, one of the world's top ten LED manufacturers, also announced its withdrawal from the global LED lighting business.
“Samsung’s exit means that the LED lighting industry has entered the deep water area of ​​the industry integration. Those who can’t stand it will consider withdrawing, and the competition in the back will be even more fierce.†Dr. Zhang Xiaofei, senior engineer of LED, believes that the LED industry has entered a historical The era of change.
Since the change of LED <br> <br> enter 2014, the LED industry downstream industry chain links have entered the fast lane, major companies provided loans, all aspects of integration and optimization of their resources, accelerate product layout, solid existing channels To enhance the core competitiveness of enterprises has formed a consensus within the industry.
However, from the current segmentation of the LED industry, low-end disorderly competition, price wars, and product homogeneity have led to problems such as low gross profit margins and other issues that affect the profitability of LED companies and the healthy and sustainable development of the entire industry. .
As Dr. Zhang Xiaofei said, the LED industry is already in a period of change, and various companies have already been gearing up. In addition to the previous price wars, competition for brands and channels has begun.
From the three quarterly reports of the listed LED listed companies, driven by the downstream market of the downstream lighting application, most LED listed companies have achieved good overall results in the first three quarters of this year, both in terms of revenue and net profit. . However, some enterprises have not met the annual target due to factors such as internal management, cost, and excessively high marketing expenses.
According to the statistics of the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry will reach 344.50 billion yuan in 2014, a year-on-year increase of 31%. Among them, the output value of LED upstream epitaxial chips, midstream packaging and downstream applications were 12 billion yuan, 56.8 billion yuan and 275.7 billion yuan respectively, up 43%, 20% and 32% respectively.
In the field of upstream epitaxial chips, it has gradually improved since last year after spending a period of overcapacity and a serious shortage of operating rates in previous years. According to GLII forecast, in the downstream lighting application market demand, in 2014, the domestic LED chip output value is expected to exceed 10 billion yuan.
This year's chip prices have remained basically stable, because the technology and market have been relatively stable, and the capacity of many companies has not been fully utilized. This year, with the maturity of the technology and the market, the production capacity has gradually opened. Chip demand has been increasing, but as the supply of chips has expanded accordingly, the actual situation is barely maintaining a balance between supply and demand.
At the package side, scale has become the best choice for many packaging companies. Since last year, packaging companies, especially listed companies, have accelerated the pace of expansion and mergers and acquisitions.
As the industry has said, the winning factors for packaging companies will be management capabilities, cost control, and scale and brand.
In reality, domestic first-line packaging companies are still giving priority to scale, and on this basis, they gradually close the technological gap with international manufacturers, especially quality.
Under the premise of scale, the new packaging market segment has gradually begun to show its unique charm. A variety of new packaging technologies such as COB and flip chip packaging have emerged to become a high-margin product that is rare for packaging companies.
Application links, especially lighting applications, as the largest market has always been the most competitive part of LED companies. In this link, the serious homogenization of many domestic LED lighting companies has led to price wars, which have made the company's profits dilute and the consumers can't see the authenticity.
In terms of industry development trends, LED lighting in the future will shift from pure price competition to product value competition.
As an important resource in the field of lighting, the channel has fallen into the madness of lighting companies in the past two years. Large-scale channel investment, multi-fold marketing costs have not brought significant results to lighting companies. Since the beginning of this year, lighting companies have paid more attention to stabilizing their original advantages in the expansion of channels, and at the same time, they have quickly entered through mergers and acquisitions.
Mergers and acquisitions integration continued in November, although it has entered the late autumn, but in the LED industry, mergers and acquisitions integration boom has not cooled.
On November 17th and 18th, two consecutive heavy acquisitions stirred up the LED industry. First, LED outdoor lighting giant Qinshang Optoelectronics (002638.SZ) announced that it will invest 376.125 million yuan to acquire a 51% stake in display maker Beijing Caiyida; followed by LED power supply, Daisuke Power (002660.SZ) announced cash and stock The total consideration is nearly 200 million yuan to control 55% of Fangzhengda, a leading manufacturer of flexible printed circuit boards.
Mao Shuo Power Dongjun Fang Jibin said that Moso Power and Founder have a large number of common customers and potential target customers. The acquisition will promote the integration of resources and enhance the overall business scale.
Moso Power is negotiating with Founder to purchase circuit boards, and this move will further optimize the company's supply chain structure.
In the acquisition announcement, Qinshang Optoelectronics also believes that through this equity acquisition, the company will further optimize the company's industrial layout and strengthen the company's LED segmentation application through the technical advantages, brand advantages and channel advantages of Caiyida in the display field. Market leading position in the field.
All of this is just a microcosm of the integration of mergers and acquisitions in the LED industry shuffling process in 2014.
According to GLII statistics, as of November 2014, there were more than 80 related concept stocks in the LED lighting industry. Among them, 22 companies have listed through the LED industry chain related concepts, mainly LED chips, packaging, display, outdoor lighting, supporting materials and supporting equipment. In the process of the LED lighting industry gradually mature, mergers and acquisitions integration is an inevitable process.
GLII is not fully statistical. In 2014, listed companies involved in mergers and acquisitions include Maoshuo Power, Lehman Optoelectronics, Chau Ming Technology, Lian Jian Optoelectronics, Jufei Optoelectronics, Wanrun Technology, Liard, Changfang Lighting, Hongli Optoelectronics, Sanan Optoelectronics, Dehao Runda, Lianchuang Optoelectronics, and Weiwei have 13 shares, accounting for nearly 60% of the total number of listed companies.
“M&A is the best way out.†Dr. Zhang Xiaofei made the above judgments from the policy environment, industry market opportunities, the degree of benefit of both mergers and acquisitions, and the merger and acquisition tide that LED has set up since 2013.
In his view, the LED concept is very good, the industry is in a period of rapid rise, and the M&A boom that began in March 2013 is further fermenting and is currently in the best period of M&A. Through appropriate mergers and acquisitions, companies are likely to take a favorable position in the industry reshuffle.
Guan Yong, general manager of the domestic lighting industry giant Sunshine Lighting (600261.SH), also recognized this point. “The leading lighting companies have gone through the stage of product and brand, entering the stage of capital and social resources integration. Lighting companies want to stand out from the competition and find New innovations are critical."
“In 2014, the M&A of listed companies in the LED industry chain showed active cross-border mergers and acquisitions, and complementary M&A. The proportion of horizontal integration of the main business of the enterprise was very small. The merger case of horizontal expansion of the main business was only the acquisition of Yi Shida by Lianguang Optoelectronics. Acquired Smect, Zhouming Technology acquired Lanpu Technology.†Zhang Hongbiao, research director of Gaogong LED Industry Research Institute, also pointed out that indoor lighting companies have basically absent from the M&A feast in the past two years. At the same time, the mutual cooperation between traditional lighting companies and LED lighting companies Integration is not obvious.
Despite this, Dr. Zhang Xiaofei is obviously more optimistic about the development of downstream industries. “LED general lighting is in the golden period of development, the industry is in a period of rapid integration, and there will be more and more mergers and acquisitions. The competitive pressure of non-listed downstream application companies will be greater. The elimination of industry competition is accelerating."
This description is used to describe the current industry turning point in the LED industry.
In 2014, the LED industry mergers and acquisitions continued to heat up.
"By taking advantage of the potential of capital, to showcase the LED industry", this is already an important way for LED companies, especially the listed companies in the LED industry. "Listed companies actively use capital operations to accelerate development, is already the trend of the times." A LED listed company secretary told the "High-tech LED" reporter.
Moreover, the policy environment is also conducive to the merger and reorganization of the LED industry. Since last year, the State Council has issued a number of policies to support mergers and acquisitions, and the CSRC has also actively optimized the approval procedures for mergers and acquisitions.
From the market environment, the LED lighting industry is also shuffling. This year, many companies, including Sichuan Yuanli and Zhongshan Fengguang Lighting, lost their joint ventures and closed down. At the same time, Samsung LED, one of the world's top ten LED manufacturers, also announced its withdrawal from the global LED lighting business.
“Samsung’s exit means that the LED lighting industry has entered the deep water area of ​​the industry integration. Those who can’t stand it will consider withdrawing, and the competition in the back will be even more fierce.†Dr. Zhang Xiaofei, senior engineer of LED, believes that the LED industry has entered a historical The era of change.
Since the change of LED <br> <br> enter 2014, the LED industry downstream industry chain links have entered the fast lane, major companies provided loans, all aspects of integration and optimization of their resources, accelerate product layout, solid existing channels To enhance the core competitiveness of enterprises has formed a consensus within the industry.
However, from the current segmentation of the LED industry, low-end disorderly competition, price wars, and product homogeneity have led to problems such as low gross profit margins and other issues that affect the profitability of LED companies and the healthy and sustainable development of the entire industry. .
As Dr. Zhang Xiaofei said, the LED industry is already in a period of change, and various companies have already been gearing up. In addition to the previous price wars, competition for brands and channels has begun.
From the three quarterly reports of the listed LED listed companies, driven by the downstream market of the downstream lighting application, most LED listed companies have achieved good overall results in the first three quarters of this year, both in terms of revenue and net profit. . However, some enterprises have not met the annual target due to factors such as internal management, cost, and excessively high marketing expenses.
According to the statistics of the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry will reach 344.50 billion yuan in 2014, a year-on-year increase of 31%. Among them, the output value of LED upstream epitaxial chips, midstream packaging and downstream applications were 12 billion yuan, 56.8 billion yuan and 275.7 billion yuan respectively, up 43%, 20% and 32% respectively.
In the field of upstream epitaxial chips, it has gradually improved since last year after spending a period of overcapacity and a serious shortage of operating rates in previous years. According to GLII forecast, in the downstream lighting application market demand, in 2014, the domestic LED chip output value is expected to exceed 10 billion yuan.
This year's chip prices have remained basically stable, because the technology and market have been relatively stable, and the capacity of many companies has not been fully utilized. This year, with the maturity of the technology and the market, the production capacity has gradually opened. Chip demand has been increasing, but as the supply of chips has expanded accordingly, the actual situation is barely maintaining a balance between supply and demand.
At the package side, scale has become the best choice for many packaging companies. Since last year, packaging companies, especially listed companies, have accelerated the pace of expansion and mergers and acquisitions.
As the industry has said, the winning factors for packaging companies will be management capabilities, cost control, and scale and brand.
In reality, domestic first-line packaging companies are still giving priority to scale, and on this basis, they gradually close the technological gap with international manufacturers, especially quality.
Under the premise of scale, the new packaging market segment has gradually begun to show its unique charm. A variety of new packaging technologies such as COB and flip chip packaging have emerged to become a high-margin product that is rare for packaging companies.
Application links, especially lighting applications, as the largest market has always been the most competitive part of LED companies. In this link, the serious homogenization of many domestic LED lighting companies has led to price wars, which have made the company's profits dilute and the consumers can't see the authenticity.
In terms of industry development trends, LED lighting in the future will shift from pure price competition to product value competition.
As an important resource in the field of lighting, the channel has fallen into the madness of lighting companies in the past two years. Large-scale channel investment, multi-fold marketing costs have not brought significant results to lighting companies. Since the beginning of this year, lighting companies have paid more attention to stabilizing their original advantages in the expansion of channels, and at the same time, they have quickly entered through mergers and acquisitions.
Mergers and acquisitions integration continued in November, although it has entered the late autumn, but in the LED industry, mergers and acquisitions integration boom has not cooled.
On November 17th and 18th, two consecutive heavy acquisitions stirred up the LED industry. First, LED outdoor lighting giant Qinshang Optoelectronics (002638.SZ) announced that it will invest 376.125 million yuan to acquire a 51% stake in display maker Beijing Caiyida; followed by LED power supply, Daisuke Power (002660.SZ) announced cash and stock The total consideration is nearly 200 million yuan to control 55% of Fangzhengda, a leading manufacturer of flexible printed circuit boards.
Mao Shuo Power Dongjun Fang Jibin said that Moso Power and Founder have a large number of common customers and potential target customers. The acquisition will promote the integration of resources and enhance the overall business scale.
Moso Power is negotiating with Founder to purchase circuit boards, and this move will further optimize the company's supply chain structure.
In the acquisition announcement, Qinshang Optoelectronics also believes that through this equity acquisition, the company will further optimize the company's industrial layout and strengthen the company's LED segmentation application through the technical advantages, brand advantages and channel advantages of Caiyida in the display field. Market leading position in the field.
All of this is just a microcosm of the integration of mergers and acquisitions in the LED industry shuffling process in 2014.
According to GLII statistics, as of November 2014, there were more than 80 related concept stocks in the LED lighting industry. Among them, 22 companies have listed through the LED industry chain related concepts, mainly LED chips, packaging, display, outdoor lighting, supporting materials and supporting equipment. In the process of the LED lighting industry gradually mature, mergers and acquisitions integration is an inevitable process.
GLII is not fully statistical. In 2014, listed companies involved in mergers and acquisitions include Maoshuo Power, Lehman Optoelectronics, Chau Ming Technology, Lian Jian Optoelectronics, Jufei Optoelectronics, Wanrun Technology, Liard, Changfang Lighting, Hongli Optoelectronics, Sanan Optoelectronics, Dehao Runda, Lianchuang Optoelectronics, and Weiwei have 13 shares, accounting for nearly 60% of the total number of listed companies.
“M&A is the best way out.†Dr. Zhang Xiaofei made the above judgments from the policy environment, industry market opportunities, the degree of benefit of both mergers and acquisitions, and the merger and acquisition tide that LED has set up since 2013.
In his view, the LED concept is very good, the industry is in a period of rapid rise, and the M&A boom that began in March 2013 is further fermenting and is currently in the best period of M&A. Through appropriate mergers and acquisitions, companies are likely to take a favorable position in the industry reshuffle.
Guan Yong, general manager of the domestic lighting industry giant Sunshine Lighting (600261.SH), also recognized this point. “The leading lighting companies have gone through the stage of product and brand, entering the stage of capital and social resources integration. Lighting companies want to stand out from the competition and find New innovations are critical."
“In 2014, the M&A of listed companies in the LED industry chain showed active cross-border mergers and acquisitions, and complementary M&A. The proportion of horizontal integration of the main business of the enterprise was very small. The merger case of horizontal expansion of the main business was only the acquisition of Yi Shida by Lianguang Optoelectronics. Acquired Smect, Zhouming Technology acquired Lanpu Technology.†Zhang Hongbiao, research director of Gaogong LED Industry Research Institute, also pointed out that indoor lighting companies have basically absent from the M&A feast in the past two years. At the same time, the mutual cooperation between traditional lighting companies and LED lighting companies Integration is not obvious.
Despite this, Dr. Zhang Xiaofei is obviously more optimistic about the development of downstream industries. “LED general lighting is in the golden period of development, the industry is in a period of rapid integration, and there will be more and more mergers and acquisitions. The competitive pressure of non-listed downstream application companies will be greater. The elimination of industry competition is accelerating."
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