LED packaging factory expansion of the encroachment of the map in the second half of the war

March 04, 2023

From the global LED industry is continuing to fall into the "shuffle war", in which the international LED packaging manufacturers' revenue, output value and market share are facing a recession, it is an indisputable fact.

The global LED industry is continuing to fall into the "shuffle war". It is an indisputable fact that the revenue, output value and market share of the international LED packaging manufacturers are facing a recession.

Among them, LG Innotek and Cree were affected by the adjustment of inventory. In 2015, revenue decreased by 25% and 20% respectively. The international LED manufacturers have a clear pattern in the domestic market. In 2015, the market share was less than 40%.

It is completely different from the "ice and fire two days", although the recent LED lighting and component prices are relatively stable, but the domestic LED packaging factory expansion competition has not shrunk.

Mulinsen (002745) has a monthly production capacity of 35 billion at the end of 2015. The entire production capacity of Jiangxi Xinyu and Ji'an will be accelerated in 2016. It is expected that the monthly production capacity will move towards 50 billion.

Hongli Optoelectronics (300219), after expanding its LED packaging capacity and acquiring Smax, the monthly production capacity of LED packaging in the first quarter is about 2.2 billion. It is expected that its subsidiary will increase its production capacity by another 1 billion in 2016.

Guoxing Optoelectronics (002449) also announced that it plans to expand its production capacity in the midstream packaging field with its own funds of no more than 400 million yuan, which will increase the LED packaging capacity by 20-30% from the original 4 billion.

In addition, Jufei Optoelectronics (300303) added 1.3 billion/year backlight devices and 2.2 billion/year lighting device capacity, and Xiamen Xinda (000701) also built new display and white light device production lines.

According to statistics, from November 2015 to April 2016, a total of 8 industry companies (including the middle and lower reaches of the industrial chain) issued additional issuance or convertible bonds, raising more than 7 billion yuan. Among them, the listed investment direction of seven listed companies is capacity expansion, involving 12 projects, with a planned total investment of 11.34 billion yuan.

“In the domestic LED packaging factory, the overall package output value and market share are increasing upwards due to technological upgrading and strong expansion. Therefore, if the new capacity is released in 2016, the cost advantage of the current LED packaging plant will continue to increase, in the second half of 2016. The price war will be triggered at a glance." Industry veterans analyzed.

The author can also see that due to the slowdown in the global LED packaging market, Taiwan's LED packaging plants have been eroded by profits. In recent years, capacity expansion has slowed significantly. Only the second quarter of Yiguang was put into operation at the new plant in Miaoli. Locked in the automotive LED market, and secondly, except for the new five-unit factory of Dongbei Optoelectronics, which will be put into operation in the third quarter, there is no other news at present.

"In the trend of low-cost consumer LED lighting market, the LED market competition pattern is severe, the price decline may expand in the second half of 2016, and the profit pressure of manufacturers will increase greatly." According to Taiwan LED industry analysts pointed out.

"The global demand for LED lighting has gradually increased. Recently, the price of LED lighting and components has slowed down. The price of the mainstream medium-power 2835 LED products in the market has dropped by only 1-2% in a single month," said Wang Gaoyang, deputy general manager of Hongli Optoelectronics.

As for the medium-powered 5630-size LED products, the price of a single month has fallen by 5% in the case of international companies such as Lumileds. At present, the price of medium power LEDs is on the verge of cost line, and some small packaging factories have successively withdrawn.

According to the data of the High-tech Research Institute LED Research Institute (GGII), the total size of China's LED industry in 2015 reached 396.7 billion yuan, a year-on-year increase of 15%. At the same time, the tide of mergers and acquisitions and the collapse of the LED industry continued to stage, and the price of the LED industry chain generally fell by 30%-50%.

“In 2015, more than 20% and about 5,000 LED-related companies withdrew from the market. Last year, the proportion of domestic LED packaging companies was up to 30%,” said Zhang Hongbiao, director of the financial services project of high-tech research and development.

Industry experts predict that in 2016, LED terminal lighting market demand will pick up. Domestic LED packaging plants will continue to release expansion plans and pursue capacity scale advantages. In 2016, they will actively launch mergers and acquisitions offensives and expand the price war. After one year from Ganzhao Optoelectronics (300102), Wang Xiangwu, the unanimous action of the company's original controlling shareholder, finally chose a private equity fund to take over the shares. Regardless of whether the price is reduced or the background of the market, the above transactions are quite interesting.

Ganzhao Optoelectronics disclosed the “Simplified Equity Change Report” on May 21, and Shenzhen and Junzheng Asset Management Co., Ltd. (Shenzhen Hejun) transferred 4370 held by Wang Xiangwu through the Zhengde Xinsheng No. 1 Investment Private Equity Fund by way of agreement transfer. 10,000 shares of listed companies, accounting for 6.2% of the total share capital; in synchrony with Jun Zhengde's concerted action, Suzhou and Zhengyi Equity Investment Fund Management Enterprise (Suzhou Hezheng) passed the Juhuan No. 1 Investment Fund in a large transaction The shares of 6.3 million listed companies held by Wang Xiangwu accounted for 0.89% of the total share capital. The prices of the above two transactions are all 6.6 yuan per share. Based on this calculation, the total transaction price totaled 330 million yuan.

After the completion of the transaction, Shenzhen Hejun and Suzhou and Zhenghe held a total of 50 million shares of Ganzhao Optoelectronics (600,184), accounting for 7.1% of the total share capital of the listed company. The number of shares held by Wang Xiangwu was reduced to 10.7644 million shares, accounting for 1.53% of the company's total share capital.

Shenzhen Hejun and Suzhou Hezheng said that its shareholding is optimistic about the development of Ganzhao Optoelectronics business, and hopes to obtain good investment income in the future.

According to the data, Shenzhen Hejun and Suzhou have a pure "and monarch" lineage. At present, Shanghai Hejun Investment Consulting Co., Ltd. holds 62.5% of Shenzhen Hejun, and the remaining five shareholders include Jin Zhangyu, Yi Yangchun, Zhang Zhe, Zhang Zhi, Li Wenming; Suzhou Hezheng is a limited partnership, LP is Shanghai Hejun Investment Consulting Co., Ltd., GP includes Jin Zhangyu, Yi Yangchun, Zhang Zhe, Tieling and so on. It is reported that Jin Zhangyu is currently a senior partner of Hejun Group, and Shanghai Hejun Investment Consulting Co., Ltd. is jointly funded by Wang Mingfu, the chairman of Hejun Group, and Xu Dichang, the executive vice president.

The reporter noted that Ganzhao Optoelectronics announced the plan for the increase in September 2015. It plans to make non-public issuance of shares to no more than five specific targets including the company's shareholder Wang Weiyong. The total amount of funds raised will not exceed 800 million yuan, all of which will be invested in LED blue green. Optical epitaxial chip industrialization construction project. In November 2015, Ganzhao Optoelectronics completed a non-public offering, with a total increase of 115 million shares at a price of 6.94 yuan per share, raising a total of 795 million yuan. Among them, Wang Weiyong, the company's largest shareholder, was allocated 115.274 million shares with a lock-up period of 12 months. The "He Jun" was sold at a price of 6.6 yuan per share, which was only 4.89% discount to the additional price.

In addition, Ganzhao Optoelectronics has completed the first employee stock ownership plan. Through the secondary market bidding method, it has purchased a total of 10.074 million shares of the company, accounting for 1.5194% of the company's total share capital. The total transaction amount is 63.638 million yuan, and the average transaction price is about It is 5.94 yuan per share and the lock-up period is from March 22, 2016 to March 21, 2017.

Therefore, whether it is the receiving party "and the monarch" or the subscription shareholder of Ganzhao Optoelectronics Co., Ltd. in 2015, or the employee stock ownership plan, the cost is relatively close to each other. The company's latest share price is 6.71 yuan, which is also in this price range. After one year, Gan Zhao Optoelectronics (300102), the unanimous action of the company's original controlling shareholder Wang Xiangwu finally chose a private equity fund to take over the large amount of shares. Regardless of whether the price is reduced or the background of the market, the above transactions are quite interesting.

Shenzhen Hejun and Suzhou Hezheng said that its shareholding is optimistic about the development of Ganzhao Optoelectronics business, and hopes to obtain good investment income in the future.

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