The explosive growth of the LED lighting market in 2014 led to major changes in the market structure. Companies in all links of the upstream, midstream and downstream sectors competed increasingly fiercely to seize more market shares. In order to cope with competition and consolidate existing market positions, mergers and acquisitions, as one of the most convenient and fastest-effective ways to "rise", are favored by LED companies. Compared with previous years, the current integration and mergers and acquisitions between enterprises are more frequent, and the direction of integration has also changed from 'the strong acquires the weak' to 'the strong acquires the strong'. In addition to extending the industrial chain to achieve diversified development, the purpose of LED enterprise mergers and acquisitions is to consider channels, brands and production capacity to strengthen strength and expand scale.
Since the beginning of this year, there have been an endless stream of mergers and acquisitions in the LED industry. Whether it is a horizontal integration of 100% acquisition of competitors or a vertical acquisition of a large proportion of equity in downstream companies, these acquisitions have brought a new atmosphere to the LED industry. LED companies must have spent "big money" on the integrated companies. Of course, this has also brought new development opportunities to the LED industry.
Unilumin Technology acquires Lamp Technology "with small and big potential"
In August this year, Liu Jiao, director of Unilumin Technology, said at the Shanghai Stock Exchange Industry Frontier Forum that now that the industry is generally undergoing mergers and acquisitions for expansion, companies will not easily carry out mergers and acquisitions. The industry needs to think about the significance of mergers and acquisitions to the company and the industry.
At the end of September, Unilumin Technology issued an announcement stating that in order to implement the corporate strategy of enlarging and strengthening the company's main LED display business and further improve the company's competitiveness and market share in market segments such as small spacing products and overseas high-end rental LED screens, it will leverage Shenzhen Lamp Technology Co., Ltd.'s existing project resources and business network related advantages to create competitive advantages in market segments through synergy. , the company plans to sign an "Equity Transfer Agreement" with a total of nine shareholders including Zhan Hongshui, Fang Rongzi, Wu Yuesheng, Yu Silin, Weng Xiaoyong, Shenzhen China Merchants Technology Investment Co., Ltd., West China Jinzhi Investment Co., Ltd., Beijing Borui Shengde Venture Capital Co., Ltd., and Shenzhen Zhaoke Innovation Investment Fund Partnership (Limited Partnership), agreeing to acquire 100% of the equity of Lamp Technology with its own funds of 68 million yuan.
Unilumin Technology stated that during the reporting period, the company resolutely implemented the strategic guidelines established at the beginning of the year, introduced a refined management model, vigorously promoted the progress of various tasks and achieved results, the operating efficiency continued to improve, and the company's comprehensive strength and core competitiveness continued to enhance. At present, both the LED display and lighting application markets are in a period of rapid growth, with both challenges and opportunities. The company is firmly grasping the development trends of LED display and LED lighting.
Lamp’s core competitiveness lies in high-quality channels for small spacing and overseas high-end rental screen markets. Lamp's revenue in 2013 exceeded 180 million (Unilumin's display business was 600 million), nearly 120 million in the first half of 2014, and is expected to reach 250-300 million for the full year (of which small spacing is about 100 million, and high-margin overseas revenue is about 20 million US dollars). After the merger, Unilumin's scale will be significantly increased.
Due to factors such as the insignificant effect of scale and the large number of personnel, LAMP only achieved breakeven profits and losses from January to July 2014. In the future, after Lamp merges with Unilumin, the two companies will be deeply integrated in production, marketing and other fields, and are also expected to make greater achievements in cost and expense control. Therefore, this merger will not only vigorously drive the growth of Unilumin's display business, but also help Lamp release profits. In the future, it will have a stronger competitive advantage in the small-pitch market through synergy.
Why did Lianjian Optoelectronics acquire Youtuo Public Relations and Easystar for 950 million
On September 26, Lianjian Optoelectronics released a restructuring plan. The company plans to acquire 100% equity of each of Shanghai Youtuo Public Relations Consulting Co., Ltd. (hereinafter referred to as Youtuo Public Relations) and Shenzhen Easystar Electronics Co., Ltd. (hereinafter referred to as Easystar) through a combination of payment of cash and issuance of shares, and raise supporting funds. The overall price of the underlying assets is approximately 950 million yuan. After the reorganization is completed, the company will further strengthen the service capabilities of the media business of listed companies. The company will complete the layout of the large outdoor media industry chain, while consolidating and enhancing its competitive advantages in the field of LED display applications. The prototype of the large outdoor media group has begun to emerge.
It is reported that Youtuo Public Relations is a professional agency that provides public relations services. It is headquartered in Beijing and has a branch in Shanghai with more than 200 employees. Currently, the cooperative customers include eight major fields: fast moving consumer goods, finance, IT, communications, energy, real estate, Internet, and medicine. Services include strategic consulting, strategic consulting, crisis public relations, media relations, brand management, event marketing, interactive marketing, creative execution, etc. The implication of Lianjian Optoelectronics' acquisition of Youtuo is obvious. On the one hand, it has a professional team to maintain the brand in brand building, which has a unique advantage in establishing the company's brand image. Secondly, in the Internet era, Youtuo's existing channel resources and experience can be used to better enable Lianjian to better adapt to the big data era of the Internet.
Easystar is a manufacturer specializing in the research and development, production, sales and related services of LED full-color displays. The company has been fully engaged in the LED industry since 2007, and it has been more than eight years now. This Lianjian Optoelectronics business is in the same direction. This acquisition shows that the company's production capacity is insufficient and it needs to expand production quickly. If you rebuild again, you may miss the opportunity.
Lianjian Optoelectronics has both LED display manufacturing and outdoor media, and has unique advantages in building a large outdoor industry chain. After the acquisition of Easystar, Lianjian Optoelectronics' LED display production will surpass Leyard and Absen, becoming the largest LED display manufacturer in China (calculated based on 2013 data), and will further enhance the company's overall overseas business expansion capabilities. After acquiring Youtuo Public Relations, Lianjian Optoelectronics will upgrade from the original one-way advertising to online and offline two-way interactive communication. Through the combination of public relations business and advertising business, Lianjian Optoelectronics can better provide a full range of services to brand customers.
Jiawei Co., Ltd. acquired 100% equity of Pinshang Lighting for 122 million yuan
On the evening of May 21, Jiawei Co., Ltd. announced that the company signed an equity transfer agreement with all shareholders of Zhongshan Pinshang Lighting Co., Ltd. on the 19th, agreeing to transfer 100% of the equity of Pinshang Lighting in cash. The parties to the agreement took Pinshang Lighting’s estimated value of RMB 122.5 million as the initial transfer consideration. Pending the formal appraisal report issued by the appraisal agency, if the appraisal result differs by more than 10% from the initial transfer consideration of the target assets, the parties to the agreement will separately negotiate to determine the transfer consideration of the target assets; otherwise, the initial transfer consideration of the target assets shall be the transfer consideration. On July 16, Jiawei Co., Ltd. delivered another good news, announcing that it had successfully acquired 100% of the shares of Pinshang Lighting in cash. This acquisition will not only enable it to effectively integrate related resources and complement its advantages, but will also take a solid step towards further consolidating and deepening its position and share in the LED lighting market.
Pinshang Lighting has an experienced operations team and management system, stable customer resources, dealer channels, and intangible assets such as a good market brand and industry reputation, but there are big problems with its funding. Jiawei Co., Ltd. has strong financial strength, and also values Pinshang Lighting’s years of business accumulation and market development experience, so it can acquire it smoothly.
Although the industry has mixed reviews for the marriage between Jiawei and Pinshang Lighting, most of them are positive. "Jiawei Co., Ltd. has made the right move. With the joining of Pinshang Lighting, Jiawei Co., Ltd. will be 'even more powerful' and will achieve new leap-forward development." said an industry insider.
It can be seen that the transfer of all shares of Pinshang Lighting by Jiawei Co., Ltd., which is in a period of rapid growth, is an important part of its strategy to develop the domestic market. As the company's wholly-owned subsidiary and main sub-brand, Pinshang Lighting will also accelerate its development with the continued investment of superior resources by listed companies, and actively prepare to become a first-class brand in the domestic commercial lighting field.
Snowlett spent 495 million to acquire Fushun Optoelectronics
On the evening of September 10, Sherlett disclosed a major asset restructuring matter of issuing shares and paying cash to purchase assets. It planned to purchase Chen Jianshun, Chen Jiantong, Zhao Chaohui, Fujian Sanhe Venture Capital Co., Ltd. (hereinafter referred to as "Sanhe Ventures"), Shanghai Anyi Wenheng Investment Center (Limited Partnership) through a combination of non-public issuance of shares to specific objects and payment of cash. ) (hereinafter referred to as "An Yi Wenheng"), Zhangzhou Yinfu Weiye Investment Co., Ltd. (hereinafter referred to as "Yinfu Weiye"), Yang Weiyi, Huang Zhigang, Zeng Xiaofeng, Yang Baicheng, Chen Jinying, Yang Wenfang, Lin Jianxin, Zhang Zhipeng, Lin Limei, He Zhong Quan, Dai Longhuang, Cai Weijie, Lin Zhuqin, and Cai Zhizhong, a total of 20 shareholders of Fushun Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Fushun Optoelectronics", "Target Company"), hold 100% of the equity of Fushun Optoelectronics and raise supporting funds.
After the completion of this transaction, Sherlite's business scale and profitability will be greatly improved. Using the capital operation platform of a listed company to acquire Fushun Optoelectronics, a leading domestic solution provider in the field of LED lighting and display applications, through the issuance of shares and payment of cash will help Sherlite actively seize major industry opportunities arising from the rapid development of LED applications.
On the one hand, Fushun Optoelectronics has rich customer resources such as governments, banks and transportation, and will also maximize the resource inventory capacity of Sherlite and achieve a comprehensive integration of both parties in terms of technology, core business, customer resources, etc.
Snowlett's products are mainly concentrated in indoor lighting, automotive lighting and environmental engineering lighting. After the acquisition is completed, Sherlite is expected to break through the current market dominated by indoor energy-saving lighting products, expand into areas such as LED display systems and counter service products, and open up a broader outdoor high-power lighting market.
Qinshang Optoelectronics acquires 51% equity of Caiyida
Qinshang Optoelectronics announced at noon on the 17th that in order to enrich and improve the company's industrial chain and expand its market share, the company plans to use its own funds of 37.6125 million yuan to acquire 51% of the equity of Beijing Caiyida Technology Development Co., Ltd. ("Caiyida"). After the acquisition is completed, Caiyida will become a holding subsidiary of the company.
Caiyida is also an excellent channel seller. Caiyida has obvious comprehensive competitive advantages in the Indonesian LED display factory and rental market through its subordinate channels, ranking first in market share.
Qinshang Optoelectronics said that Caiyida’s customers are mainly system integrators. These intermediaries are mostly large and medium-sized system integrators and intermediaries with extensive and concentrated network resources. This not only provides conditions for the rapid growth of high-density display business in these fields, but also has a high degree of overlap between the sales channels of LED displays and LED lighting products. This equity acquisition will help the company further expand the LED industry market with Caiyida’s high-quality channel resources.
Qinshang Optoelectronics predicts that Caiyida’s operating income in 2014 is expected to reach 100 million yuan and net profit to reach 10 million yuan. The completion of this acquisition will have a positive impact on the company’s 2014 performance.
Tongfang Shares acquired Zhenmingli, and THTF ES held 51.6% of the equity
On June 19, Tongfang Shares, through its wholly-owned overseas subsidiary THTF Energy-Saving Holding Limited, subscribed for 1 billion new shares (par value of HK$0.1 per share) issued by Zhenmingli Holdings Co., Ltd. (hereinafter referred to as "Zhenmingli") at a price of HK$0.9 per share. The subscription price totals HK$900 million. Upon completion of this share subscription, Tongfang will hold 51.6% of Zhenmingli’s equity through THTF ES and issue a comprehensive tender offer to Zhenmingli’s shareholders.
In this wave of consolidation, Tongfang's HK$900 million acquisition of Zhenmingli is also a representative corporate consolidation case in the industry.
As early as the beginning of the new year in 2014, the industry came out with the blockbuster news that Tongfang Co., Ltd. had taken over Zhenmingli. This was an expansion that was somewhat incomprehensible. Because no one thought that the former "lighting overlord" Zhenmingli would be acquired by Tongfang Shares.
It is understood that Zhenmingli has been in trouble since its performance changed dramatically in 2011, with a full-year loss of HK$1.43 billion. In just two or three years, its sales fell sharply, its market share at home and abroad shrank sharply, senior management changed frequently, and elite talents were lost in large numbers.
This lighting "empire", which was one of the first in the world to have a complete industrial chain from upstream epitaxial chips to downstream LED lighting application products, is struggling in the precarious situation and has almost come to an end.
The reason is still attributed to Zhenmingli’s chaotic and extensive management, haphazard foreign investment, and weak bank financing capabilities. Zhenmingli believes that due to impairment losses on property, plant and equipment last year, as well as impairment losses on goodwill and deposits for the acquisition of available-for-sale investments, coupled with a decrease in gross profit margin due to soaring labor costs and operating expenses, inventory provisions and bad and bad debt provisions were made in response to weak economic conditions, thus pushing up operating losses.
Hongli Optoelectronics Curve Acquires Smede
On the evening of October 13, Hongli Optoelectronics, which is not satisfied with the title of the leading domestic white light LED packaging company, announced that due to receipt of the China Securities Regulatory Commission’s decision not to approve the company’s decision to issue shares to An Maoling and other companies to purchase assets and raise supporting funds, the company decided to modify the plan to spend 170 million yuan in cash to acquire Shenzhen Smede Company (hereinafter referred to as "Smede") to strengthen its advantages.
It is understood that the acquisition of Hongli Optoelectronics was reviewed at a working meeting held by the Listed Company Mergers, Acquisitions and Reorganization Committee of the China Securities Regulatory Commission on September 1 this year. The company’s restructuring matters of issuing shares and paying cash to purchase assets and raising supporting funds were not approved. The review opinion was that the equity change and its disclosure were unclear.
Smart Optoelectronics has certain complementarities with Hongli Optoelectronics in terms of products, customers, sales channels, etc. It has excellent assets, good development prospects and strong profitability, which is conducive to increasing the value of listed companies and bringing better returns to shareholders of listed companies.
Through this transaction, Hongli Optoelectronics not only obtained the high-quality assets of Smed, but also incorporated Smed’s management team into the listed company, which is conducive to the long-term sustainable development of the listed company. Smart Optoelectronics complements Hongli Optoelectronics in many aspects such as customers and sales channels. The two parties will deeply integrate in technology, market, management, finance and other aspects to exert synergy.
Maoshuo Power purchased 55% of Founder’s equity for nearly 200 million
On November 18, Maoshuo Power issued an announcement that the company planned to issue 18.7 million shares at a price of 8.64 yuan per share and pay 30.096 million yuan in cash to purchase the 55% stake in Hunan Founder Electronic Technology Co., Ltd. jointly held by Fang Xiaoqiu and Lan Shunming. At the same time, the company plans to issue 3.11665 million shares each to Zong Peimin and Cao Guoxiong at the same price, raising 53.85 million yuan to pay cash consideration and intermediate expenses, and the remaining part will increase capital to Founder.
Information shows that on February 24 this year, Zhongjing Electronics, which had been suspended from trading for three months, disclosed plans to acquire 100% of Founder’s equity. In June this year, the plan failed to be approved at the company's shareholders' meeting, causing the restructuring to be shelved.
Unexpectedly, five months later, Founder would fall into the arms of another listed company, Moshuo Power Supply. It is worth noting that despite being only a few months apart, the two valuations are very different.
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