FSL's board of directors cited dissatisfaction

With the popularity of energy-saving lighting, LED industry competition intensifies, many lighting companies have integrated mergers and acquisitions to enhance competitiveness. Over the past two years, the completion of the acquisition and integration of a number of lighting companies want to share a big cake from the LED industry. However, in the lighting industry, one after another in the case of mergers and acquisitions and mergers and acquisitions industry leader FSL (000541) figure. Statistics show that in recent years, FSL launched only in 2014, a takeover plan, but ultimately the board of directors of the target company's earnings is not obvious for the veto. FSL executives expressed concern about the company's current situation, that if the Board continues to not as the company will be difficult to survive in the increasingly competitive lighting industry.

It is understood that FSL was the Foshan SASAC holding company in 2005, Foshan SASAC will hold its 23.97% FSL state-owned shares were transferred to the German OSRAM Youchang Holdings Limited and Hongkong Youchang lighting equipment Co., Ltd., after the transfer, the two shares were 13.47% and 10.50% cases, OSRAM became the largest shareholder of FSL.

However, in the past 10 years, FSL and OSRAM cooperation is not happy. OSRAM's former employees have revealed that since the completion of the acquisition in 2005, the contradiction between FSL and OSRAM management has existed, and with the growth of OSRAM in China, this contradiction was intensified. OSRAM entered the FSL, just to develop their own channels with FSL. "

Insider told the news network, the main market in Germany in Europe and North America, due to the fear of competition with the industry, OSRAM has been suppressed FSL plans to open up overseas markets. In 2014, FSL launched a takeover of Hongkong Chuan-Feng plan, but director Wu Shengbo and Hoffman for Hongkong Chuan-Feng revaluation rate have objections to vote against. Two directors said that Hongkong Chuan-Feng so far continued losses, synergistic effect of three years of financial return analysis mainly relies on FSL, the current valuation is based on FSL's future investment and cooperation on the basis of this part should not again pay equity merger price.

It is understood that the founder of Hongkong Chuan-Feng in 80s in the United States has set up an electronic rectifier technology company, the company acquired by PHILPS in early 90s, the founder of the company has been appointed as the general manager of PHILPS North America and global electronic rectifier CEO. He later founded his own company (Hongkong Chuan-Feng). A senior FSL said: "the company had done a lot of product development and the North American preparation, preparation is certainly not making money, but we think this is a great opportunity, channels and products have standard, the price is low. "

The source told the news network, said OSRAM is opposed to the acquisition of the surface is the price problem, in fact, is worried that the company entered the North American competition with OSRAM formation. "OSRAM is doing lighting, traditional lighting level of two stalls, no obvious competition, are now LED, high-grade tends to be low, OSRAM and we sell things, the price is almost the same, the formation of direct conflict of interest, and now has become more and more serious. "

In the eyes of the people, if you stand on the position of OSRAM voted against it can be understood, then the other shareholders of the company choose to abstain from some executives are difficult to accept. The reason, he believes that the board of directors of the company is conservative approach because of the lack of understanding of overseas, "before is to do foreign trade business with foreign habits, business is more price competition, they don't really go out to see, do not know the situation, worried about the risk of overseas rejection. "

In addition, since the company had been punished for violations of information disclosure by the Commission, after which the shareholders have been part of the collective complaints become more timid".

Statistics show that in July 2012, FSL in the 2009 annual report, 2010 report and annual report disclosure and the number of the company's related party transactions and relationships in 2011 report and annual report, by the Guangdong Securities Regulatory Bureau fined 400 thousand yuan, shall be ordered to make corrections and give a warning, the relevant parties to be sentenced to administrative punishment. Since then, FSL and on suspicion of false statements by the collective investors sued, the court ordered the company to make the first 955 claims compensation for compensation of $60 million 410 thousand and 800, while the burden of 1 million 27 thousand and 500 yuan case acceptance fee.

FSL executives said the company since 2011 by the Commission of punishment, the board does not have any action, the board of directors of the company after the incident to be very conservative, risk averse, pressing plus big OSRAM shareholders, leading the company to a kind of like the same industry competitors through a large number of mergers and acquisitions to expand the size of the company, to expand overseas business.

It is understood that FSL was founded in 1958, is the national electric light source industry, a large backbone enterprises, the State Council approved the export base of mechanical and electrical products, enjoy the right to operate their own export business. And it is this in 1993 listed on the old lighting companies, since 2011 has been caught in crisis. Despite the current situation, the business situation is still good, but several executives still revealed the company's future worries, they think that if we do not seize the time for the expansion of the company, the company may soon be squeezing out competitors.

LED lighting industry consumer electronics, the domestic production capacity of a serious excess, exports are controlled by some overseas trading company, the formation of a vicious price war between domestic manufacturers, earnings difficult. as