The merger and acquisition swept through the LED industry to undergo a new round of baptism

According to the "2015 national LED display market analysis" report, "the overall growth of the industry has entered a period of adjustment under the influence of the state macroeconomic downside situation. In 2015, the national LED showed that the overall scale of the application industry was continuously upgraded, the annual market total of the whole industry was 32 billion yuan, 30 billion 200 million yuan increased by 5.9% over the same period of the year 2014, and the increase was slightly lower than that in 2014. At the same time, the report also said, "in the future, the industry will be led by the backbone enterprises and listed enterprises under the guidance of resource allocation, factor restructuring and market adjustment." The data show that since 2013, the amount of merger and acquisition in the LED display industry has increased rapidly year by year. In 2013 this value was 2 billion 600 million yuan; in 2014 it was 6 billion yuan. The amount of M & A and the amount of M & A were doubled over the same period, and the amount of M & A in 2015 was over 10 billion yuan. Indeed, the current domestic LED display industry has entered a new stage of depth adjustment. The model of the barbarous growth, the development of the horse race and the business of profits has come to an end. From the incremental competition to the stock competition, from the initial extensive competition to the competition of the comprehensive strength represented by capital and technology, the comprehensive strength of the enterprise and the competitive decisive factors of the brand are gradually strengthened. Under this background, the survival space of small and medium-sized enterprises is seriously squeezed and the pressure of survival increases abruptly. It has become a difficult problem that can not be rid of in the way of the development of these enterprises. Since 2014, the mergers and acquisitions (M & A), represented by six LED listed companies, have set off a wave of "merger and acquisition" in the industry, and the amount of M & A in 2015 is more than 10 billion yuan. And there is no sign of a stop, in the first half of 2016, the industry "M & a" events are also frequent: in May 9th, abbion intends to invest 4 million 500 thousand dollars in the purchase of Artixium51% shares in May 20th, Chau Ming technology 100% holdings blue Pu technology; in June 8th, co construction optoelectronic spending 660 million re purchase three standard layout digital transmission. In June 14th, Lehman shares a 100 stake in the Newcastle jet Club of Australia's super strength; in June 21st, Chau Ming technology and Shenzhen City Wonderland Information Technology Co., Ltd. (mainly engaged in VR technology research and development and application) signed the "strategic cooperation agreement"; in June 28th, 300 million yuan added capital to develop the crystal. The shareholding ratio rose to 25.50% in June 29th. Lead was expected to buy a 100% stake in Zhongtian lighting for 350 million yuan; in July 13th, alto electronic 100% acquired a thousand Hui; in July 13th, Lehman shares the joint venture to enter the VR theme park; in July 28th, the Dongshan precision was 4 billion and the MFLX was generally bought by the United States. Through horizontal mergers and acquisitions, enterprises can bring economies of scale, increase the market share of enterprises, press competitors, improve the barriers to entry in the field of enterprises and the differentiation advantages of enterprises, such as the acquisition of Redio and blue Pu by Chau Ming, the strongest LED industry chain through vertical merger and acquisition, and the realization of industrial chain. In order to improve the overall competitiveness of the enterprises and improve the overall competitiveness of the enterprises, such as the development of the stock, the cross-border operation can make the enterprises diversify at a lower cost, disperse the main risk of the company and realize the business transformation, such as the acquisition of thousands of Hui and cross-border lighting, and the transnational merger and acquisition can excavate the enterprises. Greater market and profit margins, such as the acquisition of American flat electronics and PLANAR by yader. No matter what type of M & A is a part of the enterprise's own development strategy, it is the need for the survival and development of the enterprise. Even after the development of the enterprise to a certain stage, it is an indispensable part of the market competition subject to maintain the sustainable competitiveness. As a "outsider", as a member of the industry circle, we are more interested in: how long can the "merger" tide last? After this wave of "merger and acquisition", what is the pattern and appearance of the industry? How many small and medium-sized enterprises can survive? Will the international competitiveness of domestic LED display enterprises be significantly improved? This is what we expect and what we are willing to think about.