Holding a group to break out of the road to find a way to benefit the firefly

Text/High-tech LED reporter Luo Shenghua and M&A and cooperation with the group have become one of the outlets for traditional lighting companies and LED lighting companies to seek market breakthroughs.

On the evening of July 3, Shiyida (002137.SZ) announced that in order to seize the market development opportunities and realize the vision of the company to expand and strengthen the LED lighting business, the subsidiary Wuxi Shiyida Electronic Co., Ltd. (hereinafter referred to as Wuxi) Shiyida) plans to use 10 million yuan to invest in Xiamen Firefly Energy Saving Co., Ltd. (hereinafter referred to as firefly).

Firefly official website data shows that Firefly was established in February 1995, is a company specializing in the research, development and production of energy-saving electric light source products. At present, the products have entered nearly 3,000 KA terminal stores for sale, ranking first among domestic large-scale commercial super-domestic brands, and have developed more than 2,000 traditional channel distributors and exclusive franchisees. The main products are energy-saving lamps, LED lighting products and other lighting equipment.

Founded in 2004, Wuxi Shiyida is a high-tech enterprise controlled by Shenzhen Shiyida. As an LED lighting company that believes in the creation of multinational brands such as Philips, the company's products include LED light sources and indoor lighting.

At the same time as the investment in fireflies, the company will also invest 5.1 million yuan in the form of money to jointly establish a holding subsidiary with fireflies, accounting for 51% of the registered capital. The main business of the new company is to sell the domestic circulating LED lighting products of the beneficial and firefly brands in the form of retail, wholesale, e-commerce, etc. In principle, the LED light source products are from fireflies, and the lighting products are from Beneficial.

From the cooperation forms of the two parties, it can be seen that the fireflies that have the advantage of products in the traditional light source field, in addition to a complement in product resources, a larger part of the reason is mainly concentrated in the sharing of channel resources.

There are difficulties in holding the group to warm

In the era of energy-saving lamps, whether it is product technology or research and development strength, fireflies are a company that cannot be ignored. In the period when the IPO was opened before 2010, Firefly even became a strong competitor to NVC.

At the moment when traditional lighting has transformed LEDs, several traditional lighting listed companies rely on the capital market to adjust their strategic direction. After the firefly has broken the IPO, it is still struggling in the transition.

According to the data disclosed in the actual benefit announcement, the total liability of Firefly Company in 2013 was 323 million yuan, accounting for 69.3% of the company's total assets, which was 2.26 times of the company's net assets.

From the perspective of the main business composition of Firefly, traditional energy-saving lamps are still big, although fireflies are also starting to do LEDs, but the so-called ship is difficult to turn around, subject to pressure on capital operation and management, LED transformation speed relative to peers It is much slower.

In addition, at the channel construction level, the construction and maintenance of channels need to be backed by strong funds. Fireflies have advantages in foreign markets. However, in terms of domestic market development, although they have been working for many years, they are still under the constraints of funds and other factors. In the state of being in the forefront.

For Shiyida, since the transformation of LED lighting as a brand in 2009, the original business has fallen sharply, and problems such as weak initial development of new business have been exposed. According to the financial report data, the net profit attributable to shareholders of listed companies in 2013 was a huge loss of 189 million yuan, down by -687.48% year-on-year.

In response to this situation, based on the company's strategic development plan, Shiyida gradually adjusted the original EMS business contraction to a “small and beautiful” business unit, and shifted the focus of the company's revenue and profit growth to independent brand business such as LED lighting. For Shida, brand and channel are its weakest places.

The launch of the firefly channel is in urgent need of financial support, and the company is eager to develop its own brand through the development of the channel. One has channels and no funds, one has funds and no channels. From this point of view, it is also the case that the fireflies are hand in hand. Reality is forced.

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