Cross-border development of LED electronic screen industry

"Cross-Border Development of LED Electronic Screen Industry" LED electronic screens have been very popular in the past few years. Market share of multi-LED electronic screens. In the current competitive atmosphere of the LED electronic screen market, the development of LED electronic screen companies is becoming increasingly difficult, and mergers and acquisitions are the breakthroughs that most companies choose. According to data, since 2013, the amount of mergers and acquisitions in the LED electronic screen industry has grown rapidly year by year. In 2013, this value was 2.6 billion yuan, and in 2014 it was 6 billion yuan. More than 10 billion yuan.

But fortunately, since 2016, although there are still many cases of corporate mergers and acquisitions in the full-color LED electronic screen industry, with the in-depth development of the LED electronic screen industry, competition in the LED electronic screen industry tends to be rational, and corporate mergers and acquisitions have begun to be horizontal and cross-border. style development. The analysis of the LED electronic screen industry environment in 2017 is as follows: Incomplete statistical data of industry mergers and acquisitions in 2016, cross-border to the fields of media, sports and education In addition to the layout of the VR/AR field, there is another notable feature of the mergers and acquisitions in 2016. Crossover to the fields of media, sports and education. Lehman's acquisition of VisionChina New Culture is regarded as a big move to further the layout of the cross-border sports industry.

Lehman currently develops with high-tech LED and sports industry as its main business. As early as 2011, Lehman became associated with the Chinese Super League and Chinese football. Since then, Lehman has been committed to the layout and deep cultivation of the Chinese football industry. Similarly, United Exchange is also seeking cross-border sports. On November 23, 2016, Lianhe Huiye officially signed an agreement with the Chinese Super League to officially replace Lehman as the new official supplier of LED full-color displays for the 2017-2020 Chinese Super League.

United Huiye has achieved extraordinary results in hotel LED screen rental and operation in the past year. This sponsorship of the Chinese Super League can be regarded as a good springboard for cross-border sports. In the future, United Huiye may also expand its layout in the sports field. Come more often. Layout in the field of VR/AR, from the above-mentioned 2016 LED electronic screen enterprise merger and acquisition inventory, we can easily see that this round of mergers and acquisitions is still dominated by listed companies in the industry. Except for Leyard and Alto Electronics, which continue to deploy in the lighting field, other M&A cases are all in the currently hot VR/AR field (virtual reality, augmented reality).

According to the report, by 2020, the market size of the VR/AR industry will reach 30 billion and 120 billion US dollars respectively. It is undeniable that AR/VR technology will become the next outlet. Because VR technology provides an unparalleled immersive experience and sense of substitution, turning users from spectators into participants, it is widely respected in professional audio-visual, radio and television, movies, games and other fields.

However, VR is inseparable from the demand for large-screen display in various applications, and LED electronic screens with better image quality will undoubtedly play a significant role in improving the user experience of VR products. From the mergers and acquisitions, equity participation, and cooperation of LED electronic screen companies entering the VR/AR field, it is not difficult to see how enthusiastic the LED electronic screen industry is for VR/AR technology. Since Facebook’s $2 billion acquisition of Oculus in 2014, technologies represented by MR, AR, and VR (mixed reality, augmented reality, virtual reality) have once again detonated the market, and then Samsung, HTC, Sony, Razer, Canon and other technology giants formed a group Joining seems to let people see that the industry is booming.

And through the analysis data provided by authoritative organizations, we also seem to be able to see that the future VR/AR industry will be a huge cake worth hundreds of billions of dollars. The barbaric growth, staking-style development, and profiteering business model have come to an end. From incremental competition to stock competition, the initial extensive competition has gradually shifted to the competition of comprehensive strength represented by capital and technology, and the decisive factors of enterprise comprehensive strength and brand competition have been gradually strengthened.

Although the phenomenon of mergers and acquisitions among enterprises is still lively, they are more rational, and the situation of "mergers and acquisitions after a disagreement" rarely occurs. The trend of horizontal and cross-border mergers and acquisitions in the LED electronic screen industry is becoming more and more obvious. The trend of mergers and acquisitions of LED electronic screen companies: it tends to be rational. Since 2014, the merger and acquisition army represented by the six major LED electronic screen listed companies has set off a wave of "mergers and acquisitions" in the industry. In 2015, the amount of mergers and acquisitions exceeded 10 billion yuan. . And there is no sign of stopping. In 2016, "mergers and acquisitions" in the LED electronic screen industry also emerged in an endless stream.

Cai San, Director of Marketing Department of Unilumin Technology, said: "VR/AR technology can naturally realize seamless connection with animation, game industry, and entertainment industry, and these industries are also an important part of the LED electronic screen industry chain. From VR/AR From the perspective of the industry chain, the display screen is one of the most basic and important hardware facilities. The small-pitch LED electronic screen with excellent image quality can undoubtedly significantly improve the user experience of VR/AR content, so the small-pitch LED display large Screen as a carrier, combined with various imaging technologies, naked-eye 3D, holography, somatosensory, interactive touch, etc., has a broad market space for commercial applications of naked-eye VR/AR.

"Inventory of LED electronic screen enterprise mergers and acquisitions in 2016: NVC Lighting——On February 4, Hong Kong NVC Lighting Co., Ltd., a wholly-owned subsidiary of NVC Lighting, and the transferor Jinzhonghe Investment on February 3, 2016 Co., Ltd. entered into an equity transfer agreement to acquire 75% of the equity of Shine Energy Holdings Co., Ltd. Zhongshan NVC is a subsidiary of the company, the company holds 50% of the equity of Zhongshan NVC, and the target company holds a series of new generation LED semiconductor technology international The patent and the other 50% equity of Zhongshan NVC. The consideration for this acquisition is tentatively set at RMB 500 million.

Dehao Runda - On April 25, Dehao Runda announced that the company's wholly-owned subsidiary Dalian Dehao Optoelectronics and its subsidiaries intend to purchase the Dalian Dehao Optoelectronics held by them from Dalian Dehao and Dalian Comprehensive 76.33% and 23.67% of Zongde Lighting have a total of 100% equity. The appraised value of 100% equity of Dalian Zongde Lighting is 200.6551 million yuan, and the valuation value of Dalian Zongde Lighting is 200.6551 million yuan as the transaction price for this equity transfer. Mulinsen Shares - On March 24, Mulinsen announced that the company intends to purchase Yan Jianguo's 80% stake in Super Times Light Source by cash payment.

The transaction price was preliminarily determined by both parties, and the value of 80% shares of Super Times Lighting was 300 million to 350 million yuan. According to the announcement, the main assets of Chaodai Light Source are the land use rights, ownership of buildings on the ground and production equipment of Sun Company Xinhe (Shaoxing) Green Lighting Co., Ltd. Xinhe (Shaoxing) is mainly engaged in the production and sales of energy-saving lamps, LED lamps and their parts, components and accessories. It is the largest manufacturer of LED filament lamps in China.

Aoto Electronics——Announced on July 13 the plan to acquire Qianbaihui. The total transaction price rose to 300 million yuan, and the issue price for issuing shares to purchase assets was 11.27 yuan per share. On July 14, Aoto Electronics announced a major restructuring plan. The company plans to purchase 100% of the equity of Shenzhen Qianbaihui Lighting Engineering Co., Ltd. held by six counterparties including Shen Yongjian through the issuance of shares and cash payment. The transaction consideration is 300 million yuan. At the same time, Aoto Electronics intends to raise supporting funds through non-public issuance of shares to no more than 10 specific investors. The supporting funds raised will not exceed 143.6013 million yuan, and the issue price will be no less than 13.13 yuan per share.

Leyard - Leyard announced on the evening of June 29 that the company intends to acquire 100% equity of Zhongtian Lighting jointly held by Jingyu Business and Runying Business with RMB 350 million in cash. In the aforementioned equity transfer process, the transferor used 70% of the 350 million yuan equity transfer funds (corresponding to 245 million yuan) to purchase the company’s controlling shareholder and actual controller Li Jun through an agreed block transaction. shares of the company. Leyard said that the above-mentioned acquisition is conducive to the company's realization of the national layout of the lighting business.

Lianhe Huiye——On November 23, 2016, Lianhe Huiye officially signed an agreement with China Super League to officially replace Lehman as the new official supplier of LED full-color display for the 2017-2020 Chinese Super League. The 130 million (80 million cash + 50 million equipment) sponsorship for the Chinese Super League in four years is not just for the sake of gaining a good reputation. To sum up, according to the analysis of the market demand and investment consulting report of China's LED electronic screen industry from 2016 to 2021, the current domestic LED electronic screen industry has entered a new stage of in-depth adjustment.

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