Government supports the trend of LED industry consolidation

In recent years, the rapid expansion of LED production capacity has led to oversupply and the impact on market prices. The government has decided to shift from fluorescent lighting to LED lighting in the green lighting financial subsidy, as well as promoting LED industry integration.

According to the Shanghai Securities News, the National Development and Reform Commission of the Mainland has issued the "Notice of Intensifying Work to Ensure the Implementation of Energy Conservation and Emission Reduction Targets in 2013". The National Development and Reform Commission, the Ministry of Finance, and the Ministry of Housing and Urban-Rural Development jointly promote the implementation of green lighting. The project implements energy-saving industry plans for semiconductor lighting such as light-emitting diodes (LEDs), continues to implement energy-saving products to benefit people's projects, and promotes 130 million efficient lighting products.

The NDRC decided that it will promote LED green lighting projects through financial subsidies. According to statistics, the total tender for LED street lamps in the first half of the year in mainland China has exceeded RMB 20 billion. In addition, with the encouragement of the government, inland manufacturers have begun to dominate the integration of the LED industry.

According to "Securities Times" and other media reports, BDO Runda announced last week that it will establish a joint venture with NVC Lighting Huizhou Dentsu Optoelectronics, set up an LED packaging plant, expand the vertical integration of the layout, and enhance BDO Runda LED lighting market in mainland China Competitiveness.

BDO Runda said that the company has advanced technology and talents in packaging, and NVC Lighting has packaged production equipment. The joint investment of both parties in the establishment of a packaging company in Huizhou can realize the local packaging of some products, and realize the competitive advantage of sharing resources and complementing each other's advantages.

BDO Runda was founded in Zhuhai in 1996. It was listed on the Shenzhen Stock Exchange in 2004. It is the largest and most technologically advanced company in the world in terms of small household appliances. Its annual output is nearly 30 million units, and its sales in 2008 exceeded 2.6 billion. Yuan, which employs nearly 10,000 people, many of whom are high-level executives who have been digging into the billions of LED makers in Taiwan.

NVC Lighting is listed on the Main Board of the Hong Kong Stock Exchange. As of March 2013, BDO Runda has held a 20.24% stake in NVC Lighting, becoming the single largest shareholder.