Buying and buying, China's LED enterprise globalization "industrial chain integration + filling strategy" unstoppable trend

The seven-day National Day holiday is over. In less than three months, it will be the final stage of the LED industry entering the finale of 2016.

From the pre-holiday light-hearted lighting boss to the road, to GE's announcement to reach an agreement with Chinese distributors, and then to Lumileds acquisition of new takeovers, it seems that there will be major events in the industry.

Sure enough, at the end of the National Day holiday, the German media reported that Sanan Optoelectronics may participate in the full acquisition of Osram. This is another major industry event after OSRAM sold its lighting department (independent subsidiary Roundmans) to the joint bidders such as Mulinsen and IDG for more than 400 million euros in July.

These events are the microcosm of the LED industry's entry into the last three years of competition.

"The major domestic LED giants are targeting overseas markets, which is in line with the law of industrial development, which is to extend from the Chinese domestic market to the global market." An industry source said that the current domestic LED industry has basically formed, and the overseas market is China LED. The important profit growth point of the enterprise in the future.

To open up overseas markets, patents, technology, channels and talents are the embarrassment for Chinese companies, and leveraging capital is one of the best means.

Nie Pengxiang, chairman of the incentive test for long-term work in the North American market, pointed out that overseas acquisitions are the fastest way for Chinese companies to obtain brands and channels, while domestic listed companies are currently generally undervalued, using high valuations to purchase relatively cheap overseas. Assets are of course cost-effective.

In the final three years of the LED industry, the numerous acquisitions have surprised many practitioners. It seems that people are bold, and it is time to have a lot of production. It is still the old saying "to die of timidity, starvation and timidity."

Behind these typical overseas acquisitions, the transmission is the general trend of the country's geo-economy.

This industrial war is a kind of stress reaction in the upstream and downstream of various countries and industrial chains. There are both industrial chain disputes between developed and developing countries, as well as market price disputes between energy resource suppliers and demand countries. The game between economic interests and geopolitical interests between big powers.

This industrial war will reshape the global economic structure, and the winners will take the lead in global economic development in the next 30 years, and the losers will be eliminated.

1. Sanan Optoelectronics overtook 7 billion euros to acquire Osram, which is 70% higher than the previous Siemens sales valuation.

According to "German Economic Weekly" reported on October 6, Chinese chip maker Sanan Optoelectronics (600703.SH) intends to acquire German lighting company Osram.

The report quoted sources as saying that Sanan Optoelectronics plans to offer a qualified offer for Osram by mid-October, at a price of about 70 euros per share. If fully acquired, the valuation of OSRAM is about 7.33 billion euros.

Previously, the Siemens Group announced that it is considering selling its remaining 17% stake in OSRAM with a valuation of 777 million euros ($872 million). Potential buyers include Chinese investor Jinshajiang Venture Capital.

Since September 29, affected by the information on the rights of Chinese investors to buy shares, Osram shares have risen by 20% in 7 trading days, from 50 euros per share to around 60 euros per share.

Don't forget, before the MOCVD giant Aixtron announced the acquisition of equity by the Chinese consortium, which may also have Sanan Optoelectronics. Behind this is an ambitious plan for the integration of global resources in China's integrated circuit industry.

2. Lumileds, which failed in the acquisition of Jinshajiang, a US-based investment institution is considering taking over

Recently, foreign media disclosed that, according to people familiar with the matter, Philips is negotiating with Apollo Global Management Company (Apollo) to sell LUMILEDS business assets.

Founded in 1990, Apollo Management Limited is a leader in hedge funds, debt and capital markets. Judging from its past investment style, its investment style is quite cautious. This time, Philips Lighting also shows that its future growth value is worthwhile.

The institutions that competed for the LUMILEDS business with the Jinsha River at the time included Blackstone Group, Onex, Melrose Industrial Group and Apollo Global Management. Therefore, this round of acquisition negotiations is not groundless.

On March 31, 2015, the Chinese and foreign syndicates led by GO Scale Capital of Jinshajiang and the Royal Philips of the Netherlands reached an agreement to “acquire 80.1% of the shares of Lumileds under Royal Philips”. The transaction was valued at approximately $3.3 billion, while Philips held the remaining 19.9%.

The acquisition has once attracted great attention from the global LED lighting industry, because this is the first time that China Capital has announced that it will acquire a multinational company that still has a large market value, and it is also a business with strong technical competitiveness and value of Philips Lighting. one.

However, in January 2016, the two sides decided to stop the transaction because they were unable to resolve the concerns of the US Foreign Investment Committee regarding national security. But Philips still plans to sell the Lumileds division.

3, LED lighting industry to accelerate the reshuffle, the traditional trade-type production enterprises crisis

On September 27th, the Guangdong Provincial Department of Human Resources and Social Security announced the list of 41 enterprises involved in major labor security violations in the province in the second quarter of this year and investigated and rectified the situation.

Among them, a lighting company attracts attention. The name of Zhongshan Weilai Lighting Co., Ltd. (hereinafter referred to as "Weilai Lighting") owed 71 workers to nearly 260,000 yuan and was ordered to rectify within a time limit.

This is not the first time this lighting company has been notified by the relevant government department. In the first quarter of this year, Zhongshan City employers announced the list of major labor security violations, Weilai Lighting has long been in arrears of wages, and failed to pay workers' labor remuneration in full and in time according to state regulations, and ordered rectification and refused to rectify.

Coincidentally, just last week, Shenzhen Lezi Lighting was also exposed to wages owed to workers, suppliers' money, and the company’s boss ran. The same as Weilai Lighting, the business registration information of the two companies are wholly-owned enterprises of Taiwan, Hong Kong and Macau.

Behind the reshuffle of the LED lighting industry is driven by various factors such as the weak global economy, rising labor costs, and restructuring of the LED lighting market.

In 2016, the global economy is still in the midst of a turbulent cycle. Traditional manufacturing costs have risen, profits have shrunk, and overseas markets have been weak. The LED lighting industry is no exception, especially in the export market.

According to statistics, from January to May 2016, China's exports of lighting products reached US$15 billion, down 10% year-on-year, of which LED lighting products reached US$6.2 billion, up only 1.7% year-on-year.

Winning or losing does not matter. Starting in the heyday of traditional lighting, these lighting companies engaged in foreign trade, under the LED tide, are facing a huge survival crisis.

4, this LED breakthrough backlight display technology, to encounter the fate of the middle of the road?

QD Vision, a quantum dot technology giant, was dismantled by major shareholders, and the news shocked the industry. Internally, it was said that the team's top management had announced the dissolution of the core team. Many projects have been suspended. Most of the employees have left, and the withdrawal of shareholders' irreparability has caused the company to face bankruptcy. This is embarrassing.

This incident has attracted the attention of domestic industry experts after exposure. According to sources, the bankruptcy of QD VISION Taiwan Company means that capital will see a decline in the future prospects of quantum dot TV.

The so-called "quantum dot TV" currently on the market is accurately called "quantum dot backlight LCD TV". More insiders pointed out that the current quantum dot TV on the market is actually one of the many color gamut enhancement technologies of LCD TVs, and the LCD TVs that ULED and GLED do not call "quantum dots" are essentially the same.

From the current industry situation, the future market capacity of LED enterprises' quantum dot technology still depends on the technical route selection of downstream TV host manufacturers.

5, landscape lighting is "wind", this is a market that has not yet seen a knife

On the 30th, Mingjiahui (300506) announced a plan to raise funds of no more than 1.7 billion yuan, which is only 6 times from the company's IPO in late March this year.

The raised funds are planned to be invested in three projects, namely, supplementary lighting project supporting funds, LED landscape art lighting research and development production base and experience display center construction, contract energy management working capital.

At the moment of diluting profits, low-price competition, and product homogenization, some companies have begun to shift their development focus to landscape lighting.

At the Forum on Outdoor Road Landscape Lighting Symposium jointly organized by the High-tech Research Institute LED Research Institute (GGII) and the Incentive Testing, Dr. Zhang Xiaofei, Chairman of the High-Technology Research Institute, said that the global landscape lighting market will continue to expand in 2016.

Benefiting from the promotion of policy promotion in various countries and regions around the world, the penetration rate of landscape lighting market is continuously improving. According to GGII statistics, the global landscape lighting market will reach 218 billion yuan in 2015. It is estimated that the global landscape lighting market will reach 233.5 billion yuan in 2016. .

Driven by positive fiscal policy and loose monetary policy, the real estate market gradually stabilized in 2016, and the real estate landscape lighting market developed rapidly. At the same time, cities along the high-speed rail and tourism and cultural cities have attached more importance to landscape lighting, and the urban landscape lighting market has continued to expand.

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