According to people familiar with the matter, China's insurance industry regulators are currently considering industry regulatory reforms, which may re-launch the expansion of overseas expansion of the industry's largest and most solvable companies.
At the same time, regarding the issue of registration, the signals of the relevant authorities to suspend the registration system have become more and more obvious. This will undoubtedly bring two major phenomena to the LED industry in 2017: IPO queuing and seeking mergers and acquisitions.
As we all know, the quickest means of resource integration is the merger and acquisition of enterprises. Whether it is the annexation of large enterprises or the acquisition of equity, it directly promotes the integration of resources between the two parties.
"With the development of the industry, a large amount of capital is constantly flowing in. LED companies are facing a cruel fate of survival of the fittest. Since 2015, the industry has integrated mergers and acquisitions frequently, and began to choose a deep industrial chain to produce and sell high value-added products." Dr. Zhang Xiaofei, Chairman of the Research Institute, pointed out.
Indeed, as early as 2015, the number of M&A cases in the LED lighting industry has exceeded 40, involving more than 30 billion yuan. Among them, there are 6 overseas mergers and acquisitions.
After entering 2016, international lighting giants began to spin off their original traditional business. Contrary to the shrinking business of international giants, Chinese local LED companies have risen rapidly. Mulinsen, Sanan Optoelectronics, Feile Audio, and Huacan Optoelectronics have frequently accelerated their overseas presence by acquiring overseas assets.
The High-tech Research Institute LED Research Institute (GGII) believes that China's LED industry has evolved to a certain stage of transformation, and the synchronization period from the introduction to the go-out has arrived.
“The mergers and acquisitions in the LED industry are frequent. Under the opportunity of accelerating the global integration process, Chinese LED companies must take a long-term view. They should realize that if a company wants to grow and develop, it is far from relying on endogenous forces. Not enough, but also need to rely on the external forces of mergers and acquisitions, internal forces and external forces complement each other, can be icing on the cake." Wang Liyang, deputy general manager of Hongli Zhihui proposed.
Mr. Sun Shaofeng, director of marketing at Mu Linsen, also believes that “Chinese LED companies have been weak from the past technical strength to the current level of technology. The products we make are good enough and the prices are cheap enough. These multinational giants have gradually abandoned these labor-intensive products. , transforming other products."
In addition, according to Fu Ying, a spokesperson for the National People's Congress, the revised draft of the Securities Law in April this year should be able to be submitted to the Standing Committee of the National People's Congress for deliberation. This means that the “Second Reading†of the Securities Law, which has been closely watched by the capital market, has finally been put on the agenda again.
However, the "Second Trial" of the Securities Law does not involve the registration system. This is in line with the current development of China's stock market, and it is also conducive to the smooth progress of the "Second Review" of the Securities Law. After all, after Liu Shiyu took over Xiaogang as the chairman of the China Securities Regulatory Commission in February last year, the management and even the high-level attitude toward the registration system has undergone major changes.
The most obvious thing is that in the "Government Work Report" last year, there was no mention of the registration system. On March 5 this year, Premier Li Keqiang’s "Government Work Report" did not mention the registration system again. Correspondingly, the "second instance" of the Securities Law does not mention the contents of the registration system.
Behind the suspension of the registration system, the first is the reform of the management and even the government's high-level attitude towards the stock market and the registration system. After the three-wave stock market crash from June 2015 to January 2016, stock market stability is crucial for management.
If blindly advancing the promotion of the registration system, it will inevitably lead to further fluctuations in the stock market, and even eliminate the possibility of recurring stock market crashes. Whether it is from the stock market or from the overall situation of the Chinese economy, the prevention of financial risks is the top priority. And since the registration system once made the market talk about it, it is a wise choice to put it on hold for the time being.
The reason why the registration system was temporarily put on hold is that the conditions for the current A-share market registration system are not yet mature. The registration system is the product of a more mature market capitalization market. It requires not only investors, but also financiers to mature, including regulators also need to mature. At the same time, the registration system also requires strict punishment as a guarantee, which requires investors' interests to be effectively protected. As such, the A-share market is still far from the requirement to introduce a registration system.
From the actual situation of the A-share market, IPO has been repeatedly accelerated since the second half of last year. Especially in 2017, the IPO is running at a high speed. The IPO throughout January is the rhythm of the release of “three new ones a dayâ€.
This high-speed release has greatly shortened the time to market for IPOs.
As President Liu Shiyu said at the National Securities and Futures Regulatory Working Conference, "Registration is the methodological requirement of supervision, and the administrative approval system is not antagonistic. The registration system is neither idealized nor mystified." It is not surprising that the second instance of the Securities Law does not involve registration.
Since the beginning of this year, the China Securities Regulatory Commission has issued seven batches of IPO approvals, and the total amount of funds raised by 78 enterprises has not exceeded 38.5 billion yuan.
Chen Dongzheng, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of the Shenzhen Stock Exchange, said in an interview that the current IPO speed is not fast, and the listing financing is smooth, which can stimulate the vitality of private enterprises.
Of course, the amount is not the key, the key is to grasp the quality of listed companies. This requires a multi-party effort. For example, the sponsor institution is required to do a due diligence on the sponsored project, and firmly say “no†to the “declaration of illnessâ€; for the members of the audit committee, it is necessary to exercise the power in their hands and resolutely Don't let the company with problems go.
We have seen that since the beginning of this year, there have been nine companies whose initial applications have been rejected, and three more have been suspended. A total of 65 have been approved, with a pass rate of 84.4%, far lower than the 97.37% in the same period last year.
Gaogong LED combed the case of the overseas mergers and acquisitions of Chinese LED companies in 2016.
1. Mulinsen’s acquisition of Roundmans finally hammered
On March 5, Mulinsen Co., Ltd. (stock code: 002745) released that Mulinsen was involved in the acquisition of Osram's Landvewans and finally hammered it.
Dr. Olaf Berlien, CEO of OSRAM Licht AG, said: "The successful completion of this transaction is an important milestone in the strategic transformation of OSRAM. As a high-tech company, we will invest more in a stronger momentum. An attractive future growth market."
Through this sale, OSRAM has taken an important step in the implementation of the three pillars of automotive and specialty lighting (SP), lighting system solutions (LSS) and optoelectronic semiconductors (OS).
Through this transaction, OSRAM and Mulinsen also reached a strategic cooperation intention, and Mulinsen will purchase LED chips from Osram's new plant in Kulim, Malaysia.
"Osram's patents are many. The acquisition of Chinese companies can break the long-standing patent blockade, which is a big pressure for traditional chip giants." Sun Shaofeng said frankly that the future direction of overseas acquisitions must be new technologies, patents, and channels.
2, Huacan Optoelectronics acquired the new semiconductor
In July 2016, Huacan Optoelectronics disclosed the M&A target. The underlying asset was Harmony Corelight (Yiwu) Optoelectronics Technology Co., Ltd. (“SPVâ€), and SPV purchased 100% of the target company from the shareholders of the target company of the transaction. The target company of this transaction is MEMSIC, INC., which is a leading technology company in the global micro-electromechanical (MEMS) sensor industry.
The global MEMS device market is expected to reach more than US$22 billion in 2018, with a compound annual growth rate of approximately 13%. China has become the market with the largest demand for MEMS devices. The company plans to acquire the US sensor company MEMSIC, plus the field of consumer electronics and automotive electronics.
MEMSIC accelerometers and magnetic sensors are among the best in the world. If the acquisition is completed, it will strengthen the company's strength in the sensor industry and provide another growth point for Huacan Optoelectronics.
In the view of Shi Songgang, director of marketing of Huacan Optoelectronics, “the acquisition will change the pattern of the industry, but the speed will not be so fast. If the acquisition is successful, the real impact will take some time to reflect. The LED industry itself is After a rapid reshuffle process, there may be a slight change in the pattern."
3. Konka Lighting and Toshiba Lighting are in a strong joint
In June 2016, the strategic cooperation between Anhui Konka Green Lighting Technology Co., Ltd. and Toshiba Lighting Co., Ltd. was officially launched. After Konka Lighting "marriage" Toshiba Lighting, Konka Lighting sales will quickly rise to 1 billion yuan, achieving leapfrog development, ranking among the top LED lighting industry in China, and occupying a place in the global lighting industry. In the future, Konka Lighting's goal is to establish Maanshan as the world's leading LED lighting production center based on Maanshan.
The achievement of this strategic cooperation means that Konka Lighting will integrate the technology and marketing talents of Toshiba Lighting China, obtain advanced manufacturing technology, better quality control methods, better supply chain, and the product line will also be greatly The expansion and the accumulation of technology and experience of Toshiba Lighting's products on a long-term basis.
It is understood that through the strategic cooperation with Toshiba Lighting, Konka Lighting has added three manufacturing bases in Kunshan, Fuzhou and Huizhou, forming a huge supply chain and production capacity. In the next five years, Konka Lighting products will achieve comprehensive coverage, focusing on the four markets of Europe, the United States, Japan and South Korea and the domestic market, and strive to achieve the sales target of Konka Lighting in the next three years of 2 billion yuan.
For Chinese companies to acquire Japanese and Korean LED companies, Sun Shaofeng believes that "the future Japanese and Korean companies are also the target of China's acquisition. As long as they are willing to sell, there will definitely be Chinese companies to buy. Overseas acquisitions will definitely intensify the industry's reshuffle and concentration of power. It is the shuffling of the industry. Once it stands out, the original balance will be broken."
4. Sanan Optoelectronics acquired GCS and was vetoed to establish a joint venture company
In August 2016, Sanan Optoelectronics' wholly-owned subsidiary acquired 100% equity of GCS HOLDINGS, INC. (hereinafter referred to as "GCS") with its own currency capital of US$226 million, and failed to obtain approval from the US Foreign Investment Committee (CFIUS).
GCS (F-Huanyu), which was established in California, although the merger is based on the development of communication components, but its application of technical products involves the US defense and military industry. Therefore, it is believed that the reason for the merger of Sanan is likely to have national defense considerations. Previously, the market expects this merger to be severely reviewed by CFIUS in the United States, and even feared that the case was rejected due to US national security issues.
In view of the fact that both parties are engaged in the development and manufacture of wafer production processes, a consensus has been reached on cooperation, and the two parties signed a Memorandum of Understanding to achieve a win-win goal. The two parties decided to jointly fund the establishment of a joint venture company with a focus on consumer electronics and mobile device manufacturing processes, including mobile phone RF, filters, optical communication chips, power management and new technology development.
5. Dongshan Precision acquired 100% stake in MFLX
In July 2016, Dongshan Precision, Dragon Electronix Merger Sub Inc. (a wholly-owned subsidiary of the company in Delaware, USA) and MFLX signed the AGREEMENT AND PLAN OF MERGER (hereinafter referred to as the “Consolidation Agreementâ€). ").
According to the "Consolidation Agreement", MFLX's combined consideration for each share is $23.95, and the total transaction price is expected to be $610 million (approximately RMB 3.984 billion).
MFLX is principally engaged in the development, production and sales of FPC (Flexible Circuit Board). Its manufacturing base is located in Suzhou, China, with major R&D centers in the US and China, and a worldwide sales network.
According to Prismark's statistics, the target company ranked 27th among global PCB manufacturers in 2014 with a production value of US$630 million, ranking 5th among professional FPC manufacturers. The acquired MFLX will become the largest PCB and FPC in China. One of the manufacturers.
Dongshan Precision said that this transaction will enhance the company's international influence and help the company quickly establish the recognition of Chinese companies in overseas markets by means of the brand effect of the target company. The completion of this transaction will effectively promote the internationalization process of Dongshan Precision, and the synergy effect of resources will help to further enhance the company's competitive position in the global electronics industry.
Nickel Iron Battery,Nickel Iron Alkaline Battery,Solar Battery,Nickel Iron Battery For Solar
Henan Xintaihang Power Source Co.,Ltd , https://www.taihangbattery.com