Foshan small and medium enterprises LED presents three kinds of feelings

Nanfang Daily News, A shares of listed company LED 65% yejiyuzeng, released from enterprises in Foshan nationstar Wright and before the report can be seen, the two companies are showing a rapid growth trend. By the end of the lighting market demand pull, China Star optoelectronics 2014 operating income and net profit rose 35% and the same year, respectively, snow Wright in 2014 operating income and net profit rose by 12% and 7% year on year, respectively, with an increase of 28%. In 2014, the trend of integration of industry mergers and acquisitions, over the years, the deployment of the vertical integration strategy of National Star optoelectronics, the relevant responsible person said: M & A is not deliberately, but at the right time to find the right person. "

But at the same time, small and medium enterprises closed down when LED news came. In October last year, Zhongshan Hua Liang lighting (Phoenix light legend) boss and his relatives lost contact will be pushed to the cusp of the LED business capital chain problems. The industry generally believe that LED industry overcapacity, will face a reshuffle".

Mergers and acquisitions of large enterprises

Foshan 3 LED listed companies, FSL has not yet released annual report.

State star photoelectric in 2014 handed over a beautiful report card. Last year, operating income of 1 billion 540 million yuan, an increase of 35.07%; attributable to shareholders of listed companies net profit of $145 million, an increase of 28.13%. According to its three quarter 2014 earnings report, only the first quarter of last year, the country has been basically completed in the first three quarters of the star in 2013 annual results. The main car LED lighting products snow Wright also maintained two digit growth in 2014 full year operating income of 440 million, an increase of 12.7%, attributable to shareholders of listed companies net profit of $17 million 260 thousand, an increase of 7%. FSL has not yet released the annual report, said in 2014 sales of lamps and lighting products contrarian growth of 400%.

Behind the growth in performance, we can see that in 2014 the three LED companies in Foshan are inseparable from the same move - mergers and acquisitions. In January 30th this year, Wright announced that has completed the underlying assets of Fushun Photoelectric Technology Co. Ltd. (hereinafter referred to as "Fushun photoelectric") 100% equity transfer procedures and related industrial and commercial registration, Fushun photoelectric has become a wholly owned subsidiary of wright. According to information, Fushun is the domestic LED lighting and display applications and systems solutions provider.

This transaction as early as September last year has foreshadowed, three years have no action to capture the snow Wright LED market action obvious. First in September 10, 2014 announced restructuring plan, intends to spend 495 million yuan acquisition of Fushun photoelectric 100% stake; September 15th, and announced that invested 10 million 856 thousand yuan in Shenzhen city lam-kawatech Photoelectric Technology Co., Ltd. 57.42% stake, the company focused on automotive LED lighting products.

In addition, the other two Foshan LED companies are also frequent action. With the help of China Xuan tech backdoor listing profit 300 million FSL last November 28th announcement that invested subscription Chuan-Feng photoelectric technology (Hongkong) Co., Ltd. shares the bill, but the bill in order to assess the net rate is too high and is not. The country star power announced in September 29th last year, Guangdong rising Assets Management Co. Ltd. and a wholly owned subsidiary of electronic group to subscribe for 20.07% shares of the company to become the largest shareholder.

M & A action for LED enterprises, the National Star photoelectric director, general manager Wang Sen said in an interview with reporters, said: M & A is not deliberately, but to find the right person at the right time. Samsung LED China General Manager Tang Guoqing had previously told the media that, for listed companies, as long as there is a suitable object and opportunity, whether it is a strong combination or strong and weak, should do.

Last year, the national LED industry mergers and acquisitions focus on the acquisition of enterprise applications. Wu Yulin, President of the Foshan Lighting Association believes that vertical integration is the first choice for most of the listed companies LED, he described the merger is to beat their own". For FSL to LED transformation, Wu Yulin think very successful.

Small and medium enterprises profit margins are squeezed

Compared to the bustling large enterprises, small and medium sized LED enterprises in 2014 are shrouded in the shadow of the foot gate. In October 22nd last year, Zhongshan Hua Liang lighting (Phoenix Legend) boss lost contact, owed about 70000000 yuan. December 6th, Guangzhou giant photovoltaic boss foot, the supplier was owed to 200 million yuan in arrears.

The emergence of a series of "foot gate" and "collapse tide" reflects the survival situation of small and medium sized LED enterprises. In Wu Yulin's opinion, the performance between large and small enterprises polarization, including policy reasons, "2010 national implementation of energy-saving emission reduction, technology subsidies for the LED industry, resulting in a large number of enterprises in transition like a swarm of bees do LED, now the state canceled the LED chip and equipment subsidies, there will be a natural effect on capital. On the other hand, the upper reaches of the real estate industry downturn brought cold air to further expand the capital chain broken chain so that many small and medium enterprises LED difficult. In addition, the same elements of artificial land and squeeze the profit margins of small and medium enterprises LED. "Labor is getting higher and higher, and the rent is growing at an annual rate of 5%-10%. "Wu Yulin, general manager of Guangdong Western Europe Lighting Co., Ltd., said entrepreneurs distress.

Different from other traditional industries, electronic products belonging to the LED industry is also facing Moore's law plagued. That is, every 18 months, product performance doubled, but the price has dropped by half, still looking for a way out in the red sea. "And the price of LED products is basically changing every two months. "Foshan Fairview tomorrow building materials Co., Ltd. chairman Wang Tiancai told reporters, Kam