The explosive growth of the LED lighting market in 2014 led to major changes in the market structure. Enterprises in all segments of the upper, middle and lower reaches have seized more market share and the competition has become fiercer. In order to cope with competition and consolidate the existing market position, M&A, as one of the most convenient and effective “rises”, has been favored by LED companies. Compared with previous years, the current mergers and acquisitions between enterprises are more frequent, and the integration direction has also changed from 'strong mergers and acquisitions weak' to 'strong mergers and acquisitions strong'. The purpose of LED mergers and acquisitions is to extend the industrial chain to achieve diversified development. In addition, more is to consider the strength of the channel, brand and capacity, and expand the scale.

Since the beginning of this year, the integration and mergers and acquisitions of the LED industry have emerged in an endless stream. Whether it is the horizontal integration of 100% acquisition of competitors or the vertical acquisition of large proportion of equity of downstream enterprises, these acquisitions bring a new atmosphere to the LED industry. LED companies treat The integrated enterprises must have spent "big money", of course, this has brought new development opportunities to the LED industry.

Inventory of the top ten M&A events in the LED industry in 2014

Tongfang shares acquired Zhen Mingli, THTF ES holds 51.6% equity

On June 19, Tongfang shares subscribed for 1 billion new shares issued by Zhen Mingli Holdings Co., Ltd. (hereinafter referred to as “Zhen Mingli”) through its wholly-owned overseas subsidiary THTF Energy-Saving Holding Limited at a price of HK$0.9/share. The face value is HK$0.1). The subscription price totaled HK$900 million. Upon completion of this share subscription, Tongfang Shares will hold a 51.6% stake in Zhen Mingli through THTF ES and issue a comprehensive tender offer to Zhen Mingli shareholders.

In this wave of consolidation, Tongfang’s 900 million Hong Kong dollar is also a representative case of enterprise integration in the industry.

As early as the beginning of the new year in 2014, the industry had a heavy news of Tongfang’s shares, which was a somewhat incomprehensible expansion. Because no one had ever thought that the former "lighting hegemony" Zhen Mingli would be acquired by Tongfang.

It is understood that Zhen Mingli has changed from a performance in 2011, and after a year-end loss of 1.43 billion Hong Kong dollars, it has never recovered. In just two or three years, its sales have fallen sharply, the market share at home and abroad has shrunk sharply, the top management has been frequently replaced, and elite talents have been lost.

The lighting "empire", which used to have a complete industrial chain from upstream epitaxial chips to downstream LED lighting applications, was struggling in the storm, almost to the end.

The reason for this is that it is attributed to the chaotic management of Zhen Mingli, the arbitrarily foreign investment, and the weak bank financing ability. • The impaired loss on the goodwill and the acquisition of available-for-sale investments, and the gross profit margin decreased as a result of the surge in labour costs and operating expenses, as a result of the impairment loss on the property, plant and equipment In order to make provision for inventories and prepare for bad debts in response to the weak economic situation, it has accrued operating losses.

Hongli Photoelectric Curve Acquires Smide

On the evening of October 13, Hongli Optoelectronics, which did not meet the domestic leading white LED packaging company, claimed that it had decided to accept the decision of the China Securities Regulatory Commission to not approve the company to issue assets to Anmao and to raise matching funds. The revised plan plans to spend 170 million yuan in cash to acquire Shenzhen Smide Company (hereinafter referred to as “Smide”) to strengthen its advantage.

It is understood that the acquisition of Hongli Optoelectronics was not reviewed on September 1 this year in the review of the working conference held by the M&A and Reorganization Committee of the listed company of the China Securities Regulatory Commission. The company’s share issuance and payment of cash to purchase assets and raise matching funds have not been obtained. Passing the audit opinion is not clear about the equity change and its disclosure.

Smect has certain complementarity with Hongli Optoelectronics in many aspects such as products, customers and sales channels. Its excellent assets, good development prospects and strong profitability are conducive to increasing the value of listed companies and bringing better returns to shareholders of listed companies.

Through this transaction, Hongli Optoelectronics not only acquired the quality assets of Smect, but also included the management team of Smect in the listed company, which is beneficial to the long-term sustainable development of listed companies. Simai has complemented Hongli Optoelectronics in terms of customers and sales channels. The two parties will deepen integration in technology, market, management and finance to achieve synergy.

Moso Power's nearly 200 million purchase of Founder's 55% stake

On November 18, Maoshuo Power announced that the company intends to issue 18.7 million shares at a price of 8.64 yuan per share and pay 30.90 million yuan in cash. The purchase of Fang Xiaoqi and Lan Shunming is the total of Hunan Fangzhengda Electronic Technology. 55% equity of the company. At the same time, the company intends to issue 3,316,650 shares to Zong Peimin and Cao Guoxiong at the same price, raising 53.85 million yuan to pay cash considerations and intermediate fees, and the remaining portion will increase capital to Fang Zhengda.

According to the data, on February 24 this year, the Zhongjing Electronic Disclosure Plan, which was suspended for three months, plans to purchase 100% of the shares of Founder. In June of this year, the program failed to be released at the company's shareholders meeting, which led to the reorganization of the company.

Unexpectedly, five months later, Fang Zhengda will invest in the arms of another listed company, Maoshuo Power. It is worth noting that, although only a few months apart, the two valuations vary greatly. In the Zhongjing Electronics Solution, the valuation of Founder's 100% equity is 286 million yuan. However, the estimated value of the acquisition of Founder's 55% equity is 1920.56 million yuan, and the overall valuation of the company is about 350 million yuan, an increase of 22% over the previous period. While reviewing the information, Founder did not have any capital increase or acquisition during this period.

Founder is mainly engaged in the development, production and sales of flexible printed circuit boards (FPC). The products are mainly used in the field of LED energy-saving lighting, and the new application areas of FPC are mobile intelligent terminals and wearable fields.

For the media to question the problem that Founder's gross profit margin is higher than the average of the peers, Maoshuo Power said that first, Fangzhengda's shipments have increased in recent years, and the scale effect is reflected, and some raw materials, such as FCCL substrates and cover films, are reduced. The production cost; Second, Founder through the printed circuit acid etching solution recycling project, effectively recycling the waste copper generated in the process of circuit board recycling, this year Fangzhengda is expected to recover about 200 tons of copper through the recycling process It is estimated that the direct economic benefit will be about 6 million yuan; the third is that Fangzhengda is located in Pingjiang County, Changsha City, Hunan Province, with the advantages of low labor and factory costs.

In addition to consolidating and expanding its current market position in the field of LED lighting, Fangzhengda will strengthen its technology research and development, gradually increase its investment in mobile smart terminals and wearable devices, and actively explore overseas markets.

Zhouming Technology's acquisition of Lanpu Technology

In August of this year, Liu Ming, director of Zhouming Technology, said at the frontier forum of the Shanghai Stock Exchange that the company will not easily conduct mergers and acquisitions in the current industry, and the industry needs to think about the significance of mergers and acquisitions to the company and the industry.

At the end of September, Zhouming Technology announced that it would further enhance the company's competitiveness and market share in small-pitch products and overseas high-end rental LED screens, in order to implement the company's strategy of expanding and strengthening the company's main LED display business. With the existing project resources and business network related advantages of Shenzhen Lanpu Technology Co., Ltd., through the synergy effect to create a competitive advantage in the market segment, the company intends to attract investment with Zhan Hongshui, Fang Rongzhen, Wu Yuesheng, Yu Silin, Weng Xiaoyong and Shenzhen. Bureau of Technology Investment Co., Ltd., Huaxi Jinzhi Investment Co., Ltd., Beijing Borui Shengde Venture Capital Co., Ltd., Shenzhen Zhaoke Innovation Investment Fund Partnership (Limited Partnership), a total of nine shareholders signed the "Equity Transfer Agreement", agreed to There is a capital of 68 million yuan to acquire 100% equity of Lanpu Technology.

Zhouming Technology said that during the reporting period, the company firmly implemented the established strategic guidelines at the beginning of the year, introduced a refined management model, vigorously promoted the progress of various tasks and achieved results, and continuously improved operational efficiency. The company's comprehensive strength and core competitiveness continued. Enhanced. At present, both LED display and lighting applications are in a period of rapid rise, challenges and opportunities coexist, and the company firmly grasps the development trend of LED display and LED lighting.

The core competitiveness of Lanpu is the high-quality channels of small pitch and overseas high-end rental screen market. Lanpu's revenue in 2013 exceeded 180 million (the display business of Chau Ming is 600 million), nearly 120 million in the first half of 2014, and it is expected to reach 250-300 million in the whole year (including a small spacing of about 100 million, and a high gross profit of about 20 million overseas). The US dollar), after the merger, has significantly increased the scale of the display screen.

Due to the lack of scale effect and more personnel, Lanpu only achieved breakeven in January-July 2014. After the integration of Lanpu into Zhouming, the two companies will be deeply integrated in the fields of production and market, and it is expected to have a greater impact on cost and cost control. Therefore, this merger will not only drive the growth of Chau Ming’s display business. And it will help the company to release profit, and in the future will have a stronger competitive advantage in the small-pitch market through synergy.


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