In the past, people in the circle met each other and asked if they had earned. Now, everyone has asked if they have turned. At the high-tech LED industry summit held recently, the CEO of an LED company said humorously. The forum held in Guangzhou attracted more than 20 LED companies to participate in the conference. The main topic was to explore the industrial outlets during the change period. Most entrepreneurs believe that after two years of rapid development, the LED industry is about to bid farewell to the melee, and mergers and acquisitions will be the best way for enterprises to compete in the fierce market. 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 non-listed companies. Although the ownership of the company is handed over, the shareholder of the acquired party obtains the listed shares of the acquirer through the resale equity, which is equivalent to the indirect listing of the enterprise, and in most cases of mergers and acquisitions, the original shareholders will not lose management rights. However, listed companies clearly have an advantage in M&A activities. Lianjian Optoelectronics announced on September 26 that it will acquire Shenzhen Yishida Electronics Co., Ltd. in the form of stock cash. Easystar's main business is LED display. Before the IPO was planned, the company's profitability is not inferior to its peers. Zhang Xiaofei, president of Gaogong LED, believes that the M&A boom that began in March 2013 is further fermenting and is currently in the best period of mergers and acquisitions. Whether it is from the development track of both parties, or from the support of national policies, or the current rising market environment, M&A seems to be the best way to avoid risks and gain competitive advantage in the industry reshuffle. In the upstream of the industrial chain, LED chips benefit from the rapid development of the terminal LED lighting market. The market for LED chips in the first half of this year is still continuing. Zhang Xiaofei believes that the number of domestic enterprises with high-power chip production capacity is scarce, and domestic enterprises should be aligned with the high-end market. In the future, the trend of the corporate giant Evergrande will become more apparent. In the middle of the industry chain, domestic LED packaging companies have little difference in technology, the only difference is the scale of production capacity 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., believes that the decisive factors for the competition of packaging companies in the future will be management capabilities, cost control, scale and brand. In the downstream of the industrial chain, the LED lighting market as a whole is improving in 2014, but it is plagued by product homogenization. The competition of lighting products is often limited to the price level. Some companies have developed a differentiated competitive strategy by integrating with the upstream. For example, Hong Kong-listed Zhen Mingli has completed the integration with Tongfang shares. In the view of Jiang Guangjun, deputy general manager of Zhenmingli Domestic Center, from the development of the industry last year, LED lighting products will be separated from pure price competition and turned to products. Value competition. He introduced that the smart building/home lighting solution launched by Zhen Mingli this year is the action to adapt to the market development in the light of the general trend of smart cities. Of course, M&A integration is not a panacea. The industry believes that mergers and acquisitions are not only the integration of capital markets, but also the integration of corporate culture. If the parties to the merger fail to achieve a unified goal, and mergers and acquisitions may have a negative effect, they will face a situation between Dehao Runda and NVC Lighting.
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