“In 2014, the number of LED companies was as high as 20,000. After only one year, it was reduced by 20%, and 4,000 companies withdrew from the market.†On December 11, at the 2015 High-tech LED Annual Meeting, Gaogong LED Research Institute Dean Zhang Xiaofei published statistics on the survival of the LED industry in the media including the "Daily Economic News" reporter. In fact, since the beginning of this year, the LED industry has experienced fierce competition such as price wars and product homogenization. The industry has been shuffled drastically, and the polarization of enterprises in the industry is obvious. Large enterprises have further expanded through mergers and acquisitions. According to high-tech statistics, as of November, the amount of M&A in the LED industry reached 40.8 billion yuan, while small and medium-sized enterprises survived and the business was suspended. Relatively excess capacity According to Gaogong LED, on the night of November 30, Ye Zongze, the chairman of Shenzhen Yunao Lighting Co., Ltd. (referred to as Yunao Lighting), announced in his personal WeChat that “no road, no lossâ€, due to the collapse of the capital chain , Yunao Lighting officially dissolved. On December 3, Yunao Lighting resumed production with the support of its suppliers. On December 11th, Feile Audio (600651, SH) announced that it intends to acquire Havells Xiwannian through a wholly-owned subsidiary. The acquisition involves a capital of 1.05 billion yuan. It is worth mentioning that Havells is a leading global lighting technology company with more than 100 years of history. The above two cases represent the current status of LED companies. “About 4,000 LED companies (including upstream chips, midstream packaging and downstream lighting applications) have disappeared, especially downstream lighting companies. By 2018, the number of companies may disappear by half.†On December 11, Zhang Xiaofei, chairman of Gaogong LED, The reporter of the Japan Economic News said that the living conditions of many small and medium-sized enterprises are very difficult. "In this year, everyone has worked very hard, the market demand growth rate is not as good as expected, product performance continues to increase, prices are falling, competition is intensifying, and industry reshuffle is intensifying." Director of Hongli Optoelectronics (300219, SZ) Engineering Technology Center Li Kun cone said. In recent years, the lighting industry has gradually turned to the LED lighting era, and the market has experienced explosive growth. However, since the beginning of this year, market demand has been weak, LED product prices have fallen, and relatively overcapacity has emerged. According to the survey data of the High-tech Research Institute LED Research Institute, the total size of China's LED industry reached 396.7 billion yuan in 2015, a year-on-year increase of 15.1%, while the year-on-year growth rate in 2014 reached 30.57%. Zhang Xiaofei said that in the case of almost growth in the industry, SMEs are subject to capital, customers and channels, market operating costs are getting higher and higher, products are also rapidly changing, market expansion is becoming more and more difficult, and inventory pressure is increasing. Big, bankruptcy and running have become the norm in the industry. Industry mergers and acquisitions In the eyes of the industry, despite the slowdown in the growth of the lighting industry and the difficulty of survival, it is undergoing a fierce industry reshuffle. "There are large-scale, heavy-tech R&D, and LED companies with strong capital support are still promising in the future." Zhang Xiaofei Said. According to the data of the High-tech Research Institute LED Research Institute, in the field of LED upstream epitaxial chips, the chip company's operating rate reached 85% in 2015, LED chip production increased by 60%, but the output value only increased by 8.3%. "The number of LED chip products has increased greatly, but the growth of output value has only slightly increased, indicating that the price of chips is raging. Under the severe competition, about 10 chip companies have stopped production or exited." Zhang Xiaofei revealed, "now including Huacan Optoelectronics (300323, SZ The top five companies in the chip, including Sanan Optoelectronics (600703, SH), occupy 65% ​​of the market, and the market share is increasingly concentrated." The situation of LED midstream packaging is similar to that of 200 packaging companies. "The packaging field is basically concentrated in the packaging giants including Hongli Optoelectronics, Guoxing Optoelectronics (002449, SZ) and Mulinsen (002745, SZ). Zhang Xiaofei said. At the same time, LED industry, especially downstream lighting companies, have frequent mergers and acquisitions and high levels of innovation. According to statistics from the Institute of Advanced Industrial Research and Development LED Research, as of November this year, the amount of M&A in China's LED industry reached 40.8 billion yuan, and 53 M&A cases. Compared with the total amount of M&A in 2014, it was 6 billion yuan, a year-on-year increase of 580%. Among them, 39 cases of over 100 million mergers and acquisitions, accounting for 73.6%. “From the whole year of last year to the first half of this year, mergers and acquisitions in the LED industry frequently occurred. It is expected that the total amount of mergers and acquisitions will reach 100 billion in the next two years. At the same time, it will be internationalized, and the number of overseas mergers will increase simultaneously.†Zhang Xiaofei said. “Listed companies are mostly involved in mergers and acquisitions, and the main body of mergers and acquisitions is mainly downstream enterprises, and the elimination rate of industrial chain enterprises is accelerating.†Shangchai Generator Set,Power Generator,Electricity Generator,Output Type Generator Yangzhou Hengyuan Electromechanical Equipment Co., Ltd. , https://www.lchypower.com