Joyson Electronics Overseas Continuous M&A Performance Study

After ten years of rapid development,the Chinese automobile industry has entered a mature stage from its growth stage.In 2018,China's auto production and sales showed negative growth for the first time,and the auto parts industry as an upstream industry also faces challenges.On the one hand,under the call of supply-side reform,the production capacity of component companies has shrunk.On the other hand,there are more than 100,000 manufacturers in the industry.At the same time,enterprises are fiercely competitive but generally lack high value-added products,especially in high-tech areas such as automotive electronics and key engine parts.Under the urgent need of transformation and upgrading,in order to enhance their product technology advantages,domestic automotive electronics companies have chosen to “go abroad”,conduct one or more overseas mergers and acquisitions,and absorb and learn advanced technologies from foreign companies.This article selects Joyson Electronics,a representative company in the industry,as a case,and uses case analysis and comparative analysis to study the performance of continuous overseas mergers and acquisitions of automotive electronics companies.First,on the basis of document review,combining the characteristics of the auto parts industry,the development strategy of Joyson Electronics 'overseas M & A in three stages is explained;second,based on the industry background,analyze the motivation of Joyson Electronics' overseas M & A from multiple perspectives;finally,adopt The traditional financial indicators and EVA performance indicators evaluate and observe the performance of Joyson Electronics before and after M & A,and compare it horizontally with the auto parts industry to analyze the reasons for the performance changes of Joyson Electronics before and after M & A.It is concluded through analysis that overseas mergers and acquisitions will help automotive electronics companies accelerate the acquisition of scarce resources in the market,enhance their market position,and promote the development and growth of China's automotive industry.It is recommended that when Joyson Electronics and other automotive electronics companies make continuous mergers and acquisitions,due consideration should be given to the company's own debt repayment ability,rational selection of the target of mergers and acquisitions,to avoid losses caused by poor integration,and to enhance independent innovation skills to promote the strategic transformation of automotive electronics companies.