LED industry chain integration from "blind spot" to "hot spot""

The so-called "industrial chain integration" is one of the leading enterprises in the industry chain by adjusting and optimizing related enterprise relationship, the collaborative action, improve operational effectiveness of the whole industry chain, and ultimately enhance the competitive advantage of enterprises.

At present, the industry chain integration in the LED lighting industry is the trend, is the trend, but also a hot spot. Read the first half of 2013, the annual report of listed companies, acquisitions, mergers and acquisitions, partnership, capital injection, shares and other words and words can be described as a common occurrence". The specific case of industrial chain integration is countless.

As the domestic chip leader Sanan Optoelectronics in 2013 "semi annual report" as soon as possible to complete the implementation of the company's shares wrote: Taiwan canyuan photoelectric lumens with the acquisition of the U.S. equity issues, to further improve product quality, improve product structure, enhance the core competitiveness and brand influence.

In the downstream of LED applications, an optoelectronic also moves frequently, has cited concern. On the one hand, Sanan optoelectronics and Yankon joint venture in Xiamen sun three Lighting Technology Co. Ltd., the registered capital of 30 million yuan, and Yankon Sanan optoelectronics were invested 40% and 60% joint venture companies, business scope covers the new LED light source, the new development of lighting products and lighting market channel development. On the other hand, Sanan optoelectronics also announced with Jiawei shares together to create a LED App Co, the total investment is expected to exceed 1 billion yuan.

And other listed companies "active integration of industrial chain is quite high, and the potential of the race each other. As early as the lighting industry's most concerned about the radar love, and recently came a new action. Elec-Tech announcement: proposed and NVC jointly funded the establishment of a company engaged in LED (light emitting diode) in Guangdong Huizhou packaging business. Among them, China invested 40 million 800 thousand yuan in cash, with NVC equipment and cash after assessment, invested 39 million 200 thousand yuan, the shareholding ratio of 51% and 49% respectively. As the domestic packaging manufacturers REFOND announced that with the TCL group, a wholly owned subsidiary of Taiwan canyuan photoelectric Yuxing enterprise jointly invested 200 million yuan to set up Huarui photoelectric technology (Huizhou) Co., ltd.. The Jiangxi LIAN photoelectric announcement said: will be 16 million 720 thousand yuan acquisition of Shanghai letter Mao's stake in the layout of the East China LED business.

Industry veteran said: as a new generation of light sources, LED is not only a product revolution, but also an industrial revolution. It will be very difficult for any enterprise to move forward in this revolution. Integration of resources, leveraging each other, enterprises can live better, go further.

"With whom" decided to go far"

As the saying goes: "a person can go far, to see who he peers". Cooperation between enterprises and the game is also the case. "Integration" industry chain is committed to enterprises in different sectors of the industry chain through the power of capital "or" win-win situation "together tightly, and" sharing weal and woe "effect in the later period of cooperation. Thus, the integration of the industry chain sounds very interesting, looks very good, but it is also behind the thorns, there are risks. In fact, in addition to the integration of the industry chain, the cooperation between any form of listed companies have both positive and negative sides, need to be treated with caution.

The 2013 semi annual report issued after the media began to pay attention to the performance, had announced a high-profile "NVC and the Elec-Tech affair". In August 29th, NVC released the first half of 2013 performance report. The report shows that NVC revenue 1 billion 689 million yuan in the first half, an increase of 4.6%; attributable to shareholders of listed companies should be accounted for a net profit of 81 million 234 thousand yuan, an increase of 92.3%. Elec-Tech and mid 2013 report shows that during the reporting period, the operating income of 1 billion 353 million yuan, an increase of 10.52%; attributable to shareholders of listed companies should be accounted for a net profit of 50 million 501 thousand yuan, down 59.38% over the same period last year. In the first half net profit attributable to shareholders, NVC rose 92.3%, Elec-Tech fell 59.38%, both far. Thus, the media began to question the value of cooperation between the two sides is not worth".

Let the media for cooperation between the two sides there is another reason for doubt is that the two sides together to create "NVC, BDO" brand in the market performance of the overall channel too dull. Although at present already can see "brand image stores, in the BDO NVC" terminal market, but on the whole channel layout efforts as well as the level of market activity, performance is not outstanding.

It is reported that as of the end of 2012, NVC has 3231 stores in the country, has more than 97% prefecture level city coverage. As a good brand of lighting industry, how to balance the relationship between NVC "and" BDO NVC NVC "-" in the channel, but also by some industry insiders questioned one of the factors that can bring win-win cooperation between the two sides.

Of course, at this stage, determine the "NVC and cooperation can Elec-Tech win-win" is premature. However, in a number of listed companies to actively seek cooperation, sharing of resources at present, to remind one, choose partners is very important, it is very necessary.