"Big fish eat small fish" and integrating industry advantageous resources to consolidate and expand the market are the general trends in the development of China's LED industry, especially in Guangdong, a major LED industry province. After extensive promotion and extensive development of LED companies, there is an urgent need to establish unified industry standards and end the chaotic development situation.
At the Guangzhou International Lighting Exhibition held on June 9, Wang Donglei, chairman of Dehao Runda, said in an interview with Nandu, "The current development stage of the LED industry is roughly equivalent to the home appliance industry in the early 1990s. The heroes are vying for the top spot, and the wave of industry consolidation has just begun." Some experts also said It is predicted that "the LED industry will undergo a major reshuffle in the next five years, and both listed companies, state-owned enterprises, and private enterprises will face a very severe situation." In the LED industry, big fish eat small fish, and fast fish eat slow fish. This will be the normal state of the industry. This is also the inevitable result of market rules. Non-listed companies may basically be eliminated or integrated.
Either annex others or be annexed by others. As a leading company in the LED industry in Guangzhou, Hongli Optoelectronics has already smelled the smoke of the integration war. While constantly developing new products and technologies, it is actively expanding production capacity and integrating horizontally.
Hongli Optoelectronics spent 180 million yuan to buy Smed, which also made Hongli Optoelectronic and Smed complementary to the company in terms of technology and customers, strengthening the company's competitiveness in the packaging process. Hongli Optoelectronics said that Smed has rich experience and technical reserves in the field of LED packaging, especially in the field of lighting-grade white light and EMC LED. Both parties have strong room for complementarity in terms of production technology, product structure, sales channels, etc. This transaction will help Hongli Optoelectronics optimize its product structure and further consolidate and strengthen the company's leading position in the white light LED industry.
However, the stock market is not buying this. Hongli Optoelectronics opened sharply lower when trading resumed on the 10th and quickly fell to the limit. On the 19th, Hongli Optoelectronics opened at 13.37 yuan. By the close, the stock fell 9.96% to 12.02 yuan, with an amplitude of 10.79% on the day, a change of hands of 10.33%, and a transaction value of 139 million yuan. The decline within 5 days was 16.21%. In the past month, Hongli Optoelectronics has only appeared on the Dragon and Tiger list once, indicating that Hongli Optoelectronics' stock performance is average.
The reason is closely related to Hongli Optoelectronics’ buyout of Smed. Although Smed has promised that the audited net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in 2014, 2015 and 2016 will be no less than RMB 28 million, RMB 32 million and RMB 35 million respectively, Smed's continued profitability and high debt ratio are still questioned.
Reporters found that Smed had a year-on-year decline in net profit in 2013. Data shows that from 2012 to the first quarter of 2014, the company's operating income was 104 million yuan, 160 million yuan and 55.6452 million yuan respectively, but its net profits were 19.109 million yuan, 8.4207 million yuan and 4.3053 million yuan respectively. From the above data, it is obvious that Smed's operating income has increased steadily in the past two years, while net profit dropped significantly by 55.93% year-on-year in 2013.
The company explained this mainly because Smed increased its R&D expenditure, labor and sales investment in 2013. Its R&D expenditure increased from 5.079 million yuan in 2012 to 9.3465 million yuan, an increase of 84.02%, and sales expenses also increased by 58.02%.
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