LED Screen Industry Reshuffle Will Continue

Oct 12, 2017

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LED screen industry reshuffle will continue


Recently, LED listed companies have announced the first half of 2017 performance notice, many LED business performance rose steadily. LED industry as a whole up the same time the market space is narrowing, increasingly fierce competition in the industry. Since 2017, LED industry mergers and acquisitions tide come and go, turn the tide after another, industry reshuffle intensified.

Slowdown shuffling intensified

Statistics show that in 2016, China's LED industry, the overall output value reached 521.6 billion yuan, an increase of 22.8%, compared with "second five" during the 30% annual growth rate has declined. Among them, the upstream extension chip size of about 18.2 billion yuan, an increase of 20%; midstream package size reached 74.8 billion yuan, an increase of 21.5%; downstream application scale 428.6 billion yuan, an increase of 23%.

With the mergers and acquisitions, the collapse of the tide continued deep, LED industry reshuffle intensified. Many enterprises drowned in the wave of industrial development, which is bound to bring some impact to the LED industry; but on the other hand, the gradual reduction in the number of enterprises is the inevitable outcome of competition among the survival of the fittest. After several rounds of industry reshuffle, LED industry will be further optimized to upgrade.

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The collapse of the tide after another

Into 2017, LED market as a whole to the good, many LED manufacturers to grow and develop. However, there are some LED business situation is not optimistic, and some gradually stripping LED business, and some are directly to the collapse.

Some companies are gradually stripping their LED business. For example, more fluorine and more planning to transfer its subsidiary LED lighting subsidiary; ground on nearly 2 billion net assets of free transfer of subsidiaries; Guangdong Ganhua year after year to give up the loss of LED business. For a group of the original LED business scale is small, and in the low growth or even negative growth of the company, stripping LED business has become a helpless choice.

Mergers and acquisitions tide come and go

At present, the LED industry has entered the era of low-profit. In the market over-competition and excess capacity of the industry background, LED industry consolidation accelerated, frequent mergers and acquisitions. M & A, as a simple, fast development path, by many LED companies respected. Through mergers and acquisitions, and some enterprises in the vertical expansion, the LED industry chain layout; some enterprises horizontal extension, take the country to the world; some companies are trying new areas, explore different development path.

Since 2017, LED industry mergers and acquisitions continue. According to incomplete statistics, around the field of LED integration of mergers and acquisitions has reached more than 30 cases. Mergers and acquisitions continue to staged, mergers and acquisitions in the form of diversification. In addition to the LED industry chain upstream and downstream integration of mergers and acquisitions, but also continue to reach out to the education, media, Internet and other fields.

In the industry view, the industry reshuffle is a normal trend of development, any industry must experience the brutal growth and optimization of the upgrade process. Merger and reorganization will be a normal, torrent Yong return also wise.