Photoelectric Liu Hujun: to become the big media leaders

In September 26th, the construction of Au Optronics Co in Shenzhen City suspended for more than two months (hereinafter referred to as the "daylight" or the "company") announced a major asset restructuring plan, the company intends to cash of about 262 million yuan and 31 yuan issued approximately 22 million shares, the total price of about 950 million yuan to buy Shanghai Youtuo The Pr People Consultancy Limited (hereinafter referred to as "Youtuo the public relations") and Shenzhen yishida electronic Limited by Share Ltd (hereinafter referred to as "yishida") 100% stake. After the completion of the restructuring, the company will complete the layout of large foreign media industry chain, the embryonic form of the big outdoor media group.

Large media leaders

"Chinese has grown into the world's second largest advertising market, we strive to become the major foreign media leader China. "The photoelectric chairman Liu Hujun says.

The breakdown of the company's development process, in 2011 before the listing, has been ranked LED outdoor advertising screen industry leader status; the 2012 anniversary of the listing, investment in the establishment of linkage culture, enter the LED outdoor advertising market in 2013; two years, $860 million acquisition of timeshare media, in-depth layout of the outdoor advertising industry; the three anniversary of the 2014 listing release of Youtuo, yishida and PR mergers and acquisitions, in order to become the largest communication equipment manufacturers and into the public relations communication and digital service industry, to lay a solid foundation for the large outdoor media group.

Extension strategy to help the rapid development of mergers and acquisitions

At present, the construction of photovoltaic market value has exceeded 6 billion yuan, the price is 3 years ago, the issue price rose more than 180%. The company's main business, 3 years ago, the photoelectric is only an annual income of only 500 million yuan of professional LED display manufacturers, the merger is completed, according to the relevant data show that the photoelectric 2015 merger of the pro forma income will reach 1 billion 680 million yuan.

"At the beginning of the development of enterprises, mergers and acquisitions epitaxial rapid development is our important driving factor," Liu Hujun said, "a lot of domestic and foreign acquisition targets, but to find the right team, to the industry, the concept is not easy, otherwise, not only difficult to play a wide range of M & A to 1+1 greater than the synergistic effect 2, it is very easy to play many negative effects".

This acquisition scheme launched ESOP, ESOP shares 3 million 600 thousand shares, the subscription price of 31 yuan, Liu Hujun said: this can be the backbone of the staff for listed companies in the business module were holding shares of the company, the company and the backbone of the staff convergence of interests, cooperation in unison company, the company bigger and stronger. As for why the acquisition target performance commitment is 5 years, Liu Hujun said, this is to let the photoelectric have enough time to layout large outdoor industry chain, the formation of software and hardware integration, both digital and mobile Internet gene, customer service gene; both the core of media resources, and resources of precision marketing services, online data the integrated media group.

For the LED display manufacturing industry, Liu Hujun think this is the foundation of the photoelectric development in the upstream, outdoor LED digital equipment company is not only a large outdoor industry chain providers, and it also helps in extending downstream outdoor media industry chain, to promote the relationship between large outdoor media industry network establishment; and it can avoid the main business a single business, reduce enterprise development under the influence of traditional economic cycle fluctuation probability.

Large outdoor media market space

Relevant data show that the current domestic outdoor media delivery volume of about 50 billion per year, about an annual growth rate of about 10%. Liu Hujun believes that the entire large foreign media industry chain integration if successful, there will be a huge synergies.

First of all, LED display market demand every year nearly 30 billion, has just listed companies (including new board) LED display in 2013 operating income of 3 billion 540 million (according to the 2013 annual report disclosure: Riyadh 760 million, Abison 680 million, Zhou Ming 600 million, science and technology 580 million, 290 million, yishida photoelectric Yuanheng photoelectric 240 million, alto electronics 220 million, Lehman photoelectric, accounting for 170 million) less than 15%, more than 85% are small and medium enterprises to share, the market concentration is low, the integration of the larger space.

Secondly, from the outdoor media industry, excellent foreign enterprises (tachco benchmark (JCDecaux) annual income of more than 20 billion yuan; the market value of more than 6 billion euros, the domestic Focus Media listed overseas and outstanding in the delisting of the company (FMCN), an annual income of 7 billion yuan, the left and right; another part of the business to domestic listed companies have a brilliant outdoor spread, province wide shares, BlueFocus, new culture, Guangdong Media etc.. The total number of these companies are also related to outdoor business income is less than 20% of the industry, some outdoor media companies expect to be integrated. While both LED photoelectric display manufacturing and outdoor media, large outdoor industry chain construction is richly endowed by nature advantage. After the acquisition of yishida photoelectric display, LED output will be more than Riyadh and Abison, to become the largest manufacturer of LED display (2013 data), and will further enhance the ability to expand the company's overseas business overall. The acquisition of Youtuo PR, the photoelectric will be from the original one-way advertising promotion for online and offline two-way interactive communication, through the combination of public business and advertising business, provide a full range of services for clients.

"Before we extend from the manufacturing industry to the media industry, and now, we are upgrading from product manufacturing to platform operations," Liu Hujun said confidently.

Turning to the further development of the future, Liu Hujun believes that there are two key points, one is