The new three board financing is surging. Who is the last straw to crush the camel?

"In the next three years, the LED lighting industry will gradually enter a new era, including new opportunities, new market segments, industrial integration (and mergers and acquisitions), etc., which is particularly important." Dr. Zhang Xiaofei, Chairman of the High-Technology Research Institute pointed out.

As a major part of the multi-level capital market, the New Third Board is constantly expanding. Especially for small and medium-sized emerging enterprises that need capital, the listing of the New Third Board is undoubtedly an opportunity for the company to catch a capital express.

According to the incomplete statistics of the High-tech Research Institute LED Research Institute (GGII), there were more than 70 LED-related companies listed on the New Third Board in 2015.

In addition, the information disclosed by the National SME Share Transfer System (New Third Board) official website shows that as of the end of February 2016, there were 5,826 listed companies in the New Third Board, of which 1,336 were transferred by the market, and 4,490 were transferred, and the total share capital reached 386.62 billion shares.

According to the above data, listing is indeed full of temptation for enterprises.

Nowadays, many LED companies in the industry that are preparing for the listing of the new three boards also believe that on the one hand, listing is a good financing channel, allowing companies to obtain large amounts of funds for development in the short term; on the other hand, listing is beneficial to enterprises. The expansion of the industrial scale and the optimization of the internal structure.

In fact, in 2015, the LED industry was in a state of flux, and almost every company was in the midst of “deep waters”. It is not difficult to see from the performance of LED listed companies last year. In fact, there are also joys and concerns in the listing.

Zhang Xiaofei said, "The performance of listed companies in the middle reaches last year was relatively stable, and the change was not significant; the upstream was not so ideal, basically it was negative growth; while the downstream had obvious differences, there were gains and losses, for Liard, Lianjian Optoelectronics For such fast-changing companies, the performance is relatively impressive."

It is understood that the performance of downstream listed companies increased by 15% year-on-year, and the increase was not very obvious. At the 1st CEO Conference of the 2016 G20-LED Summit, Zhang Xiaofei analyzed in depth how the company should deal with the capital market from three different perspectives.

From the point of view of the capital market, many LED companies have entered the capital. For example, there are many new companies in the New Third Board, but their financing ability is not good. The reason is that the capital market is interested in large-scale mergers and acquisitions in the LED industry. Small and medium-sized lighting The packaging company, the financial market is basically not treated.

From the point of view of business management, improving efficiency and enhancing value are two levels of direction, and they must be put on the agenda. In the case of low gross profit, it is the value to improve efficiency and increase profits.

From a strategic layout point of view, through strategic cooperation, companies work together with partners to increase product prices, and in a sense, they also enhance brand value.

However, there are also many people in the industry who say that the capital market is a gold nugget, but the space for the operation of the new three boards is not large.

Liu Lin, director of the same party's optoelectronics market, said, “Although the market is picking up, everyone is not short of money. At present, few companies dare to invest heavily. Therefore, it will not significantly promote the financing of the New Third Board.”

It is reported that the number of new three boards listed by LED companies has exceeded 100, but most of them are still the transfer of agreements, which also leads to liquidity deviation and the transaction is deserted. At the same time, most of the listed LED companies generally have revenues of less than 100 million yuan, the scale is small, and the profitability is weak.

Some people in the high-tech LED industry group also said that the giants keep track of the technology research and development in the market segment of new technology products, but they will not invest in large-scale immediately. They will wait patiently for the market technology to mature gradually based on the reasons for controlling risks. After the market space is opened, enter again.

“Indeed, in 2016, the merger and acquisition and the New Third Board listing case have not stopped. On the contrary, it will be more obvious. Many international brands have chosen to cooperate with domestic enterprises, which will be very important for the development of the next small and medium enterprises. Big impact." Zhang Xiaofei said.

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