After the release of Landvewans at the beginning of last year, the market had a sensation, and many lighting companies in China tried to compete. However, from the financial data released by Mu Linsen, the current profitability of Landwell is not as optimistic as expected. For example, from July to December 2016, the net profit attributable to the shareholders of the company was a loss of 19.6 million euros. In response to the recent days, the domestic LED packaging leader Mulinsen, borrowed the ship to join the other consortium to acquire the LEDVANCE (hereinafter referred to as Landwells) of the lighting business of the global lighting giant Osram. Mulinsen is further bringing 100% of the company's shares to the listed company. Recently, Mulinsen’s restructuring plan was officially released. With the announcement of the restructuring plan, the family of Landwells was officially exposed. After the release of Landvewans at the beginning of last year, the market had a sensation, and many lighting companies in China tried to compete. However, from the financial data released by Mu Linsen, the current profitability of Landwell is not as optimistic as expected. For example, from July to December 2016, the net profit attributable to the shareholders of the company was a loss of 19.6 million euros. In response to the financial data related to Landvence, the reporter of China Business News called and sent a letter to Ms. Mu Linsen to further understand the details, but did not receive a reply. Landwell's performance is now a loss. Landvance is a company established by the German company Osram's independent spin-off of the general lighting business. As the world's second largest provider of lighting products and solutions, OSRAM has changed its strategy from a unified lighting manufacturer to a professional lighting service provider. In July 2015, OSRAM decided to divest the general lighting business. It took a year until July 2016, when the divestiture was completed and Roundmans was able to operate independently. At the same time that OSRAM split the independent Rand Vance, it also sold it. At that time, after the sale news came out, many lighting companies in China have thrown olive branches. Finally, the Chinese consortium, composed of Mu Linsen and IDG, Yiwu State-owned Capital Operation Center, stood out and successfully bid for Landvewans in July 2016. In order to further integrate the overall equity of Landwells into the listed company, Mulinsen has been brewing for more than 9 months. Recently, the restructuring plan was finally announced. The path of the entire restructuring is that Mulinsen indirectly acquired 100% of the shares of Roundvals by issuing shares and paying cash, which was worth 4 billion yuan. With the announcement of the restructuring plan, the family of Landwells was also exposed. The restructuring plan shows that in the early days of OSRAM's divestiture business, Roundmans was authorized to use OSRAM's OSRAM and Sylvania brands to continue the brand advantage of a century-old store. In addition, OSRAM has also licensed more than 100 other trademarks to LEDVANCE. However, judging from the report of the Landdevian earnings report disclosed by Mulinsen, it may not be as bright as imagined. As of December 31, 2016, Landwell's total assets were 1.482 billion euros and total liabilities were 1.035 billion euros. Based on this calculation, the debt ratio of Roundmans is about 70%. This debt ratio is far more common than that of Chinese lighting companies, and it is higher than that of Mulinsen. At the same time, the sales and management expenses of Roundmans in FY2014 and FY2015 were 466 million euros and 449 million euros respectively, and sales and management expenses accounted for 21.55% and 20.66% of the current revenue. In the same period, Mulinsen's sales and management expenses were 422 million yuan and 478 million yuan, accounting for 10.55% and 12.32% of the current revenue. In the announcement, Mulinsen also admitted that the excessive operating expenses have affected the operating performance of LEDVANCE to a certain extent. It is worth mentioning that, for the acquisition of Rand Vans, Mulinsen has not designed the relevant performance gambling terms. Mulinsen also said that as of the date of issuance of this plan, the audit and evaluation of the target company LEDVANCE has not been completed. Snake swallowing acquisition Compared with the total assets of Landwells of 10.829 billion yuan, Mu Linsen's total assets are only 7.678 billion yuan. Therefore, Mulinsen’s acquisition of Landwells is like a snake swallow. It is worth noting that Roundmans is still a traditional lighting company. In the source of the income of Roundmans, the income of traditional light sources still accounts for the bulk. For example, the general lighting field is gradually shifting from traditional lighting technology to solid-state lighting technology, and LED lighting is rapidly replacing traditional lighting. A Zhang Shang brokerage analyst who did not want to be named told this reporter that the acquisition of Mulinsen is intended to strengthen the layout of downstream products and overseas markets. Distinguish the entire lighting market, mainly divided into three major blocks, traditional lighting, energy-saving lighting, LED lighting market. In any case, the channels of the entire lighting market are connected. The acquisition of Mulinsen can strengthen the channel layout capability of downstream terminal products. Mulinsen did not hide the favor of the Landvence channel. Mulinsen said that the construction of lighting product sales channels and the promotion of brands require a large amount of upfront investment and time accumulation. Apart from a few industry leading companies in China, other lighting manufacturers are basically limited by their own strength, or engaged in OEM business, or limited to Local market. Mulinsen provided data to prove that it has expanded its LED lighting market since 2012. As a newcomer to the LED application market, it has invested a lot of money and personnel in the construction of marketing channels. The total cost of listed companies for marketing construction in the past three years has reached 390 million. Yuan, in which the marketing investment for LED application products was about 285 million yuan, but the sales of LED application products in 2015 only reached 576 million yuan. After the completion of the transaction, relying on the marketing channel and brand effect of Landwell, Mulinsen's cost-effective products have the opportunity to quickly enter the global market. Mulinsen added in the restructuring plan. The above-mentioned Zhang surname analyst also said that Mu Linsen’s acquisition of Landwells will ultimately improve his performance and still have time to verify. Before the acquisition of Mulinsen, in 2016, the domestic lighting company Feile Audio also acquired the overseas lighting giant Xiwannian, but the performance effect has not yet appeared. Saidi Lighting Consultant Han Yun said that Mulinsen's acquisition of Landwells is in line with the company's style of doing things through mergers and acquisitions. For the acquisition of Landwells, I think that Mulinsen is mainly focusing on two points, one is the brand effect of Osram; the other is the channel capacity of Osram. As the cost of the entire LED industry declines and competition becomes increasingly fierce, the entire LED lighting will turn from free competition to oligopoly in the traditional lighting era. As an LED packaging company, Mulinsen's acquisition of Round Vans can quickly cut into the downstream terminal lighting market. Mulinsen’s acquisition of Landwells will test the company’s own capital management capabilities. At present, Mulinsen's debt ratio is above 50%. Looking at the entire lighting industry, such debt ratio is among the highest. Han Yun said.
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