Recently, the news of the listing of LED lighting companies has been coming in frequently, including Sanxiong Aurora, Debang Lighting, Guangpu Share, etc. At the same time, there are a number of lighting companies that have passed the IPO or are actively awaiting auditing. Every effort to seek listing has become a new trend in the industry. There are three main reasons behind the successful listing of LED lighting enterprises.

Reason 1: Industry enters the capital-driven stage
After the brutal growth in the early stage, the fierce price war, and the strong rise, foreign enterprises have withdrawn from the general LED lighting market. The domestic LED lighting industry has gradually matured, and the opportunities for explosive growth have been limited. At this time, the driving force of the industry has gradually shifted to capital, whether listed or merged, capital. Power has gradually emerged in the new stage.

Through the listed companies can raise a large amount of funds, thus investing more project research and development, expanding production capacity, and even building more reliable marketing channels, a large amount of capital injection can make the development of lighting enterprises more secure. Zhao Fei, secretary-general of Shenzhen Illumination and Display Industry Association, believes that capital is promoting the transformation of industry to intensive and large-scale. In recent years, the average annual growth rate of listed companies and new third board enterprises is nearly 40%, which is much higher than the average growth rate of the industry. Smith, Jinda Lighting, Kang Mingsheng, Sunrise Optoelectronics, Redio and other enterprises have become the leading enterprises in market segmentation through cooperation with listed companies platform, and the strength of capital can not be underestimated.

Reason 2: Listing and raising capital to invest in new projects
Looking back on 2016, the successful listed lighting enterprises are mainly three, Shenzhen Mingjiahui, Opel Lighting, and Intel Electronics (Hangzhou), among which only Shenzhen Mingjiahui was listed in the first half of 2016, while Opel Lighting and Intel were listed in the second half of 2016. In 2017, within four months, three lighting companies, Sanxiong Aurora, Debang Lighting and Guangpu Lighting, have been listed successfully. In addition, Tailong (Fujian) Commercial Lighting, Shenzhen Over-Frequency Technology and other enterprises have also passed the IPO to prepare for listing, through listing, they raised a lot of funds.

Sanxiong Aurora
Raising funds of 135.1 million yuan; Major investment in six major projects: LED green lighting expansion project, LED intelligent lighting production base construction project, R&D center expansion and upgrading project, entity marketing network sinking and improvement expansion project, O2 O e-commerce platform construction project, cross-border e-commerce overseas market expansion project.

Debon Lighting
The fund raised was 104.16 million yuan, and three major projects were invested: the annual output of 110 million sets of LED lighting products, the annual output of 116 million sets of LED outdoor lighting lamps, lighting R&D center and light experience center.

Guangpu Stock
The fund raised was 1981.845 million yuan, and two major projects were invested: the expansion project of LED lighting products and the construction project of R&D center.

Infineon
Raising funds of 460.21 million yuan; Major investment in two major projects: the construction project of LED lighting driving power research and development center, and the project of Tonglu LED lighting driving power industrialization base.

Op Lighting
Raising funds of 8106.579 million yuan; Major investment in three major projects: green lighting production projects (annual production of 22.7494 million LED green lighting products and non-LED green lighting products 46.088 million projects), Exhibition Center and marketing network construction projects (marketing network and sales management information system construction projects), research and development center construction projects (lighting technology). Technology R&D Center Project.

Minkave
The fund raised is 227.07 million yuan, and three major projects are mainly invested: the operating funds of lighting construction projects, the construction projects of Mingjiahui Photoelectric Industrial Park in Luan, and the upgrading and transformation projects of R&D and design centers.

It can be seen that after the listing, enterprises can raise a large amount of funds to expand production and R&D investment for multiple projects, which can not only create more powerful R&D and design centers, but also expand production lines, and even create more solid sales channels, thus continuing to enhance the strength of enterprises and stabilize their market position. This is also the main reason why lighting companies pursue listing.

This year, there are many LED lighting enterprises such as Jucan Photoelectric Technology, Sichuan Huati Lighting, Guangzhou Mingdao Lighting and so on. It is expected that they will be listed in 2017.

Reason 3: Mergers and Acquisitions by Listed Funds
With the development of the industry, the problem of low profit and homogeneity of products is becoming more and more obvious. In recent years, enterprises have begun to choose deep industrial chain to produce and sell high-value-added products. Integration and mergers of the LED industry are frequent. Mergers and acquisitions require a lot of capital, and listing can bring enough capital for enterprises.

According to incomplete statistics, in 2015, there were more than 40 cases of mergers and acquisitions in the whole industrial chain, and the total amount of mergers and acquisitions had exceeded 30 billion yuan, including many cases of Chinese capital acquiring foreign brand lighting enterprises.

By 2016, there was no sign of a halt in M&A:
On May 9, Ibsen intends to invest $4.5 million to acquire 51% of Artixium.
On May 20, ZHOU Ming Technologies holds 100% of Lamp Technologies.
On June 8, the joint venture invested 660 million yuan to buy three-standard layout digital media.
On June 14, Lehman acquired 100 shares of Newcastle Jet Club, the Australian Super Powerful Team.
On June 21, Zhouming Science and Technology signed the Strategic Cooperation Agreement with Shenzhen Wonderland Information Technology Co., Ltd. (mainly engaged in research and development and application of VR technology).
On June 28, the proportion of Mulinsen's 300 million yuan capital increase and development crystal ownership increased to 25.50%.
On June 29, Liad plans to buy 100% of Zhongtian Lighting for 350 million yuan.
On July 13, Otto Electronics acquired 100% of Qianbaihui.
On July 13, Lehman intends to participate in cooperative investment into VR theme park.
On July 21, Huacan Photoelectric announced its intention to purchase Meixin Semiconductor, a leading technology company in the global micro-electromechanical (MEMS) sensor industry.
On July 26, Mulinsen and other joint bidders purchased Osram's subsidiary Landwins for 400 million euros.
On July 28, Dongshan Precision planned to acquire MFLX by 4 billion yuan.
On October 15, Huacan Optoelectronics set a price of 1.65 billion yuan and purchased 100% of the shares held by NSL and Harmonious Core Light by issuing additional shares.

Among them, the most typical is the merger of Mulinsen and Huacan Optoelectronics. Mulinsen made a number of mergers and acquisitions and investments in 2016 to complete the layout of the whole industry chain of LED chips, devices and applications. Last year, Mulinsen realized a revenue of 5.52 billion yuan, an increase of 42.22% over the same period last year, and completed a "jump" of 3 billion to 5 billion yuan in one year. Its operating profit was 579 million yuan, an increase of 114.06% over the same period last year. Its net profit attributed to listed companies was 473 million yuan, an increase of 85.16% over the same period last year.

On January 16, Huacan Optoelectronics issued a performance announcement saying that the net profit attributable to shareholders of Listed Companies in 2016 is estimated to be 263 million yuan to 268 million yuan, so as to turn losses into profits.

Huacan Optoelectronics's business income mainly comes from LED epitaxy and chip sales. In 2015, Huacan Optoelectronics purchased 100% equity of Yunnan Blue Crystal Technology Co., Ltd. for 1.08 billion yuan, opened up the upstream material links, improved the layout of chip+epitaxy+material industry chain upstream and downstream, and the synergy effect will gradually emerge. The company's business will complement Blue Crystal Technologies in form, which will help the company expand its overall business scale and improve its profitability. The gross profit rate of Sapphire Substrate Business of Sapphire Technologies Company is as high as 45.24%. In the first half of 2016, Sapphire Substrate Business contributed 70.335 million yuan of operating income and 23.906 million yuan of net profit to the company from the date of consolidation, effectively improving the company's profitability level.

Horizontal mergers and acquisitions can bring about economies of scale, increase the market share of enterprises, suppress competitors, improve barriers to entry and differentiation advantages of enterprises in their fields; vertical mergers and acquisitions can make the LED industry chain bigger and stronger, realize the deep integration and optimization of resources in all links of the industry chain, and improve enterprises. The overall competitiveness of the industry. Liu Rong, president of Huacan Optoelectronics, stressed that under the background of global integration, the LED lighting industry has entered the stage of capital-driven growth, and the leading companies sticking to the main industry will achieve greater and stronger through more mergers and acquisitions at home and abroad.

In the current form of capital-driven industry development, listing can raise enough funds to support enterprises to invest in new projects, carry out mergers and acquisitions, enhance the strength of enterprises, stabilize the market position, listing has become the trend of the times. However, it is worth noting that listed enterprises are large enterprises with certain strength. Shuffling has entered a new stage, and the situation of Hengda, the industry leader, will be more obvious in the future.