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LED companies accelerate transformation, Guangdong becomes the province with the largest M&A amount in the country

"Industrial transformation, finance first" is one of the paths for industrial transformation and upgrading in Guangdong Province. In recent years, more and more listed companies have accelerated the pace of transformation through financing, mergers and acquisitions in the capital market.
Statistics show that Guangdong A-share listed companies have raised nearly 300 billion yuan through the capital market in the past five years, three times the total amount raised in previous years. Most of them have been invested in high-tech industries and strategic emerging industries such as electronic information, LED, biomedicine, equipment manufacturing, new materials, new energy, and cultural creativity.
Integration of industry and finance
According to statistics, the proportion of direct financing for small and medium-sized enterprises in my country is less than 5%. Problems such as difficulty in financing, high costs, and narrow channels are important factors restricting their development. Guangdong has successively held financial fairs in recent years, which have achieved great results in publicizing and promoting the docking of industry and finance.
Zhou Jianjun, director of the Guangzhou Municipal Finance Office, said: "In June this year, a total of 46 industry-finance docking contract signing projects were signed at the third Guangzhou Financial Fair, with a total amount of approximately 186.8 billion yuan. Contracts were signed on other occasions, and credit extensions reached 450 billion yuan." This industry-finance docking contract signing project not only involves manufacturing, services, strategic emerging industries and other industries, but also involves new urbanization construction, infrastructure, culture, agriculture and other fields.
Many listed companies have explored the integration of the financial industry, some to expand the industrial chain, and others to further promote industrial upgrading.
M&A expansion
Wind statistics show that in 2013, there were 89 M&A cases among 194 A-share listed companies in Guangdong Province, with a cumulative amount of 102.099 billion yuan, making it the province with the largest M&A amount in the country. In total, the amount of mergers and acquisitions in the past five years was 292.02 billion yuan, the number of completed mergers and acquisitions was 449, and the average amount of each merger and acquisition was approximately 650 million yuan.
The reporter learned from most listed processing and manufacturing companies in Guangdong that due to the slowdown in the growth of the real economy in recent years, most industries have stagnated or regressed, and net profits have fallen year after year, forcing companies to find another way out. The advantageous platform of the capital market provides companies with transformation opportunities.
In the field of cultural industry, Guangdong Media is actively seeking new profit growth points. Since this year, Guangdong Media has begun to deploy games, lottery, LED and other industries. LED companies gather in Guangdong, and mergers and acquisitions have occurred frequently this year. Qinshang Optoelectronics, Hongli Optoelectronics, Changfang Lighting, etc. have all made mergers and acquisitions or expanded. In the electronic information industry, Zhongjing Electronics plans to expand and acquire flexible circuit boards and wearable projects. Wanshun Co., Ltd. has increased its technology patents very rapidly in recent years and plans to raise 469 million yuan this year for expansion.
More and more listed companies in Guangdong are seeking potential acquisition targets by establishing industrial funds. Generally speaking, industrial investment funds established by listed companies are mainly concentrated in emerging industries such as cultural media, medical care, and the Internet. In addition, environmental protection, new materials, processing industry upgrades, etc. are also popular areas for M&A fund investment.
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