April 07, 2020

The prospect of the dispute in the Red Sea is difficult to measure.

After Samsung, Toshiba also withdrew from the Chinese lighting market. Recently, Anhui Konka Green Lighting Technology Co., Ltd. (hereinafter referred to as Konka Lighting) officially handed over to Toshiba. Konka officially received Toshiba's lighting business in China, involving more than 1 billion yuan. It is reported that Konka Lighting intends to achieve sales targets of 2 billion yuan and 5 years 5 billion yuan in the next three years through a series of integrated actions. In recent years, there have been many mergers and acquisitions in the lighting market. The LED lighting industry is highly competitive. The industry believes that in the future, enterprises will continue to follow the business rules of survival of the fittest, and the development of Konka Lighting needs further observation. Water-related lighting field At present, the development of the lighting industry is still sufficient. Chen Yansheng, vice chairman and secretary general of China Lighting Association, revealed in the 6th Shanghai Lighting Technology and Application Trends Forum 2016 that the sales of lighting industry in 2015 was 560 billion yuan, an increase of 8% year-on-year, and the export volume was 45.3 billion US dollars. The growth rate of LED lighting products was 10.8 billion US dollars, up 20% year-on-year. However, the growth rate of sales and exports in the whole industry has dropped to single digits for the first time in recent years, which was 10.5% and 15.5% in 2014. Recently, Konka Lighting officially launched a strategic cooperation and supply agreement with Toshiba Lighting Co., Ltd. (hereinafter referred to as Toshiba Lighting Co., Ltd.), mainly to receive Toshiba Lighting's lighting business in China in the form of equity transfer and asset transfer. 100 million yuan. Through the agreement, Konka Lighting also obtained the right to use TOSHIBA Toshiba brand in Toshiba Lighting in China and Hong Kong. Although Konka is mainly seen as a home appliance company in the public domain, it can be found from its official website that Konka has positioned itself to be mainly engaged in research and development, manufacturing and sales of color TV sets, mobile phones, white goods, living appliances, LEDs, set-top boxes and related products. An electronic information company that combines precision molds, injection molded parts, high-frequency heads, printed boards, transformers, and mobile phone batteries. Konka Lighting is a subsidiary of Konka Group that is involved in the LED lighting industry. For Konka to receive Toshiba's lighting business in China, Zhang Shi, head of the Consumer Electronics Research Office of the China Electronics Chamber of Commerce, believes that Konka Group has a considerable amount of capital flow and increased investment in profitable business, which is a normal development of the company. In fact, Konka Lighting and Toshiba Lighting signed the above cooperation agreement as early as December 21, 2015. The person in charge of Konka Lighting told reporters that the Toshiba lighting business received has been integrated and the personnel adjustment has been officially completed. As a veteran home appliance enterprise in China, Konka Group officially entered the LED lighting industry at the end of 2008. In 2013, Shanghai Konka Green Lighting Technology Co., Ltd. was established. It is understood that after receiving Toshiba's lighting business in China, Konka Lighting will significantly increase its total output in 2016, and intends to achieve sales targets of 2 billion yuan and 5 years and 5 billion yuan in the next three years. It is understood that after reaching a strategic cooperation with Toshiba Lighting, Konka Lighting will expand its product supply chain and increase its manufacturing bases in Kunshan, Fuzhou and Huizhou. Sales will also rise rapidly to 1 billion yuan. Its leap-forward development is expected to rank among China. The forefront of the LED lighting industry. The outlook for the battle in the Red Sea is difficult to measure With the entry of many companies and capital, the lighting industry is also facing significant competitive pressures. Internationally, in 2014, Samsung withdrew from the overseas LED lighting market; in 2015, General Electric (GE) announced the establishment of a new company, Current, to divest its lighting business; in March this year, Sharp was acquired by Taiwan's Hon Hai, lighting business will be affected On May 3, Philips Lighting announced that it will sell a 25% stake. According to the information provided by Chen Yansheng, the sales of the whole industry in 2015 was 560 billion yuan, an increase of 8% year-on-year, and the export value was 45.3 billion US dollars, up 9% year-on-year, of which the export value of LED lighting products was 10.8 billion US dollars. Increase by 20%. However, the growth rate of sales and exports in the whole industry has dropped to single digits for the first time in recent years, with 10.5% and 15.5% in 2014, respectively. At the same time, mergers and acquisitions in the lighting industry are also fierce, with only four major mergers and acquisitions in the first half of 2016. In June, Liard acquired 100% equity of Zhongtian Lighting with RMB 350 million. In May, Zhengye Technology disclosed that it had purchased the shares and paid cash, and purchased the Xuan Shuo Optoelectronics at a price of 450 million yuan. In March, Mulinsen Purchased an 80% stake in Time Light Source; in February, NVC Lighting acquired a 75% stake in Yao Neng Holdings Co., Ltd. Faced with this situation, the aforementioned analysts said that the rapid development of China's lighting industry has shown a situation of oversupply, and the production capacity is obviously over-represented. The future trend of the development of the lighting industry is still integrated. On the one hand, through mergers and acquisitions, it will be bigger. On the other hand, a group of uncompetitive enterprises will be phased out, making China's lighting industry healthier and more competitive. In view of the fierce competition in the industry, Zhang Jianfeng, deputy secretary-general of China Household Electrical Appliances Business Association, expressed concern about the development prospects of Konka Lighting. From the perspective of lighting industry, Konka and Toshiba have not yet entered the mainstream camp in the domestic lighting field, and the cooperation prospects of the two need further Observed.

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