With the development of LED industry, in recent years there has been a wave of wave of mergers and acquisitions in the industry wave of companies through mergers and acquisitions to achieve cross-industry, cross-sector or extension of business extension, to deepen the industry in the high-end market, cut into the industry segments Areas.But based on the constraints of their own conditions, to achieve the integration of resources through mergers and acquisitions, capital restructuring are mostly listed companies.Some people say that mergers and acquisitions is the capital game listed companies, some people say that M & A is the only way for SMEs. Well, today we take a look at the series of mergers and acquisitions of Chau Ming Technology in the second half of 2017, specifically analyzing the reasons for mergers and acquisitions and the impact on the industry.
Chau Ming Technology M & A can not stop
Chau Ming Technology frequently issued mergers and acquisitions announcement in 2017, becoming a hot topic in the LED industry.
Recently, Chau Ming Technology proposed 2.55 billion yuan of cash acquisition of Shandong Tsinghua University Conrad City Lighting Research and Design Institute Co., Ltd. 100% stake in each other's commitment to 2018 -2020 net profit of not less than 41 million yuan, 51 million yuan and 60 million yuan.
October 30, Chau Ming Technology intends to own funds, bank loans, etc. to subscribe for RMB0.6 billion Shenzhen Rose Technology Co., Ltd. 100% stake in the equity transfer is completed, rose science and technology will be Chau Ming Technology Subsidiary companies.
On October 10, Zhouming Technology announced a cash acquisition of part of its equity interests in Hangzhou Bainian Intelligent Optoelectronics Co., Ltd. and increased its capital to subscribe for 30.49 million shares of Hangzhou Bainian at a consideration of RMB50 million, of which RMB30.49 million was included in Hangzhou Bainian Of the registered capital, the remaining 19.51 million yuan as a capital premium included in Hangzhou Bainian capital reserve, after the completion of the transaction, the registered capital of Hangzhou Bainian changed from RMB14,382 million to RMB17,431 million, becoming the controlling shareholder of Chau Ming Technology the company.
On September 5, Chau Ming Technology said it intends to acquire 100% equity interest in Hangzhou Xihe Optoelectronics Co., Ltd. for RMB 25 million by way of its own funds and bank loans. After the equity transfer is completed, Xihe Optoelectronics will become the wholly-owned subsidiary of Chau Ming Technology Subsidiary companies.
July 27, Chau Ming Technology and Agatha signed an agreement, Chau Ming Technology intends to use its own funds and bank loans to acquire a 49% stake in Agatha for RMB40 million, while the proposed plan to use its own funds to love Plus lighting capital increase of 20 million yuan.After the completion of this equity transfer and capital increase, Chau Ming Technology will hold a 60% stake in Aga Lighting, became the controlling shareholder of Aga Lighting, Aga Lighting will become the controlling stake in Chau Ming Technology the company.
M & A reasons: around the main business continue to expand
Chau Ming Technology vigorously mergers and acquisitions LED companies, mergers and acquisitions Main LED lighting, LED display Related businesses, which is very fit with Chau Ming main technology business.Thus, Chau Ming Technology frequently mergers and acquisitions is still horizontal development around the main industry.
Chau Ming acquisition of Tsinghua University, Tsinghua University, Tsinghua University is Kanfan both urban landscape lighting planning, design, construction business, after the acquisition is conducive to deep plowing the landscape lighting, and existing road lighting, smart street lamp business merger and enhance the company's comprehensive Competitiveness.
Hope photoelectric main LED equipment lighting and related accessories, Chau Ming said Xi and photoelectric located in Yuhang Economic Development Zone, the geographical location is excellent, through this acquisition, intended to Greek and photoelectric as the basis for construction of Chau Ming-technology base in east China , Intensively market in East China, enhance the company's radiation to customers nationwide, and further enhance the company's regional service construction.
As a famous brand in the field of high-end lighting, A-home lighting has a great influence in the professional lighting industry and has a large customer base of high-end owners, lighting design companies and interior design companies. After this acquisition, Integration with its business to expand the business in the high-end lighting market influence and scope of business.
In summary, Chau Ming Technology acquired LED lighting business, the purpose is to seek development in the urban landscape lighting and high-end lighting in order to occupy the LED lighting in the high-end market.The acquisition of Rose Technology and Hangzhou Bainian main purpose is to further expand LED display Screen market segments. Rose Technology Main LED transparent screen business, in the existing LED transparent screen market has formed a brand, creating a lot of LED transparent screen project, is a professional manufacturer of LED transparent screen business. in display Screen logo signage business, customer base covering a wide range of Chau Ming technology acquisition Rose Technology and Hangzhou Bainian, in the transparent screen, signage screen area will have greater development.
Prospects: Dividends now dividends
Chau Ming Technology M & A LED lighting, LED display Business in addition to fancy mergers and acquisitions their own advantages, the development of the industry is an important factor. Chau Ming Technology acquired Tsinghua University, Likang layout of landscape lighting, acquisition of rose science and technology layout LED transparent screen, the acquisition of Hangzhou Bainian focus display Screen identification business, these segments are the hot sectors in the current industry.
Research firm data show that penetration of global LED lighting in 2017 is about 39% and will exceed 50% by 2019. The output of LED lighting products will account for more than 80% of the world's total output. At the 2016 G20 Summit in Hangzhou, Urban landscape lighting is widely praised, LED outdoor landscape lighting LED industry has become a veritable market outlet.According to the agency estimates that in 2017, China's outdoor LED lighting output is expected to exceed 100 billion yuan.
LED display Screen market is also equally bright.At present, LED display products and applications are more and more subdivided, the market is the most popular LED small pitch display, and LED transparent screen, LED shaped screen, LED grille screen It is understood that this year, LED transparent screen to achieve a huge technological breakthroughs, the successful launch of glass LED glass curtain wall screen, for its market development has laid a solid foundation. LED transparent display of the market value of about 87.2 billion US dollars by 2025. So, in the face of huge market prospects, Chau Ming technology layout is not hard to understand.
Impact: LED industry fill stronger competitors
Chau Ming Technology Main LED display and LED lighting-related business, a series of mergers and acquisitions of five LED companies is a response to the current situation and the market, reflecting the development of the industry for the industry insight.Meanwhile, also embodies the Chau Ming Technology strong capital Operational ability to spend one after another to spend heavily on the acquisition of a number of LED companies, this is not just a business will be able to accomplish, not to mention every acquisition is carrying a huge capital risk.
Although M & A related companies, Chau Ming Technology can achieve the breakdown of the area layout and the main industry to strengthen.But different companies in the management philosophy, corporate culture, organizational structure and other aspects of the need to integrate process, which requires capital in addition to operating capacity, but also need Enterprises with advanced management capabilities.
LED industry in 2017 as a whole to the better, in the wave of industrial upgrading, not only the Chau Ming technology, major companies are also frequently moves through the series of acquisitions, the LED industry will usher in a comprehensive strength of the industry competitors , Which has become the normal phenomenon LED industry.
