In the past seven years, he has acquired four LED chip manufacturers, and Li Bingjie, chairman of Jingyuan Optoelectronics (2448.TW), who is firmly seated in the global LED chip leader, has always been astounding about the future LED market.
"Jingyuan Optoelectronics has made the worst plans, and there may be three years of hard work." On August 17, Li Bingjie told the "New Industry" at the Gaogong LED Summit Forum that the current LED chip market in the world The capacity of MOCVD (L ED epitaxial wafer production equipment) is about 1,600 units, but the number of existing MOCVD equipment in the world is about 2,800. Once all the MOCVD equipment capacity is completely released, the entire LED industry will face shuffling.
“The acquisition of GuangGuang Optoelectronics (8199.TW) is mainly to improve the performance of Jingyuan Optoelectronics. Our losses are mainly caused by Guanggao Optoelectronics, and only 100% of the shares can be fully integrated by Jingyuan Optoelectronics.†Bingjie said: "All the actions are to meet the challenges of the future. Because the market situation of the LED industry is now worse than the LCD panel."
Four acquisitions
On August 9th, Jingyuan Optoelectronics Co., Ltd. and Guangguang Optoelectronics passed the share conversion method. Guangguang Optoelectronics became a subsidiary of Jingyuan Optoelectronics. The conversion ratio was 4.85 shares of Guangguang Optoelectronics common stock and 1st share of Jingyuan Optoelectronics common stock. The transaction amounted to NT$4 billion.
In the first half of this year, Jingyuan Optoelectronics lost NT$138 million. Among them, Jingyuan Optoelectronics invested 322 million Taiwan dollars in the second quarter due to the investment in Guangguang Optoelectronics and Taigu Optoelectronics.
"It will take some time to fully integrate Guanggao, but the loss of Guangjiao is expected to gradually improve." Li Bingjie said that after the completion of the merger, the number of MOCVD equipment owned by Epistar will reach 300 units, far exceeding the 150 MOCVD of Samsung. The number of devices has become the undisputed leader of LED chips. "The global share of Epistar LED chips will reach 15%."
In fact, the acquisition of GuangGuang Optoelectronics is the fourth acquisition of Li Bingjie in the LED industry. Prior to this, Jingyuan Optoelectronics also acquired Taiwan Guolian Optoelectronics, Yuan Arsenic Optoelectronics and Lianyong Optoelectronics. M&A also seems to be one of the key reasons for the rapid growth of Jingyuan Optoelectronics.
In May 2001, Jingyuan Optoelectronics was listed on the Taiwan Stock Exchange, and Yiguang Electronics, Lianhua Electronics and Guangbao Technology were all shareholders of Jingyuan Optoelectronics.
At the end of 2005, Jingyuan Optoelectronics completed the acquisition of Guolian Optoelectronics. The M&A method is still a share conversion method. The combined assets of the two companies reached NT$3.06 billion. At the same time, Jingyuan Optoelectronics has high-brightness LED chip technology, with more than 400 patents, and has become the largest LED chip manufacturer in Taiwan.
In September 2006, Jingyuan Optoelectronics also adopted Yuanyan Optoelectronics and Lianyong Optoelectronics in the form of share conversion, making Jingyuan Optoelectronics one of the global LED chip giants.
In an interview with the outside world, Li Bingjie revealed that the main reasons for M&A are to expand production capacity and market, acquire new technologies and own each other's patents.
It is reported that an important background factor for the purchase of Yuan-Yuan Optoelectronics by Jingyuan Optoelectronics is that at the time, Jingyuan Optoelectronics’ revenue from the mainland accounted for less than 10% of the total revenue, while the key market of Yuan-Yeng Optoelectronics was in the mainland market, and 80% of its revenue came from mainland.
"Now the mainland market accounts for 25% of the total revenue of Jingyuan Optoelectronics." Li Bingjie's interview with "New Industry" is not to be said. The rise of Sanan Optoelectronics, a leading LED manufacturer in mainland China, has hit the market of Guangguang Optoelectronics. The key reasons for the loss of Guangguang Optoelectronics and Jingyuan Optoelectronics.
Unfinished
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