Fenghua Advanced Technology ’s Motivation And Performance Analysis Of The Acquisition Of Naidian Technology

With the development of globalization and the rapid development of international economy and trade,a large number of foreign-funded enterprises have developed in our country,and Chinese enterprises are also actively “going out” to expand foreign markets.However,due to the gap in the level of economic development,many core technologies are still mastered by large foreign companies.The scale of my country’s technology-based enterprises is small,and their economic profits are low.Even with the support of national policies,in the increasingly fierce market competition,they are likely to fall into operating dilemmas.In 2015,due to the global economic downturn,the overall growth rate of the electronic information industry slowed down.The demand for PCs,laptops,tablets,and household appliances all declined,and the growth rate of mobile phone demand declined,resulting in a slowdown in the market demand for electronic components.The adjustment of the demand structure is accelerating,and the market price competition is fierce.This situation has intensified the pressure on the electronic components industry.Fenghua Advanced Technology,which regards R&D and manufacturing of electronic components as its main business,is also in trouble.It is urgent to promote the transformation and upgrading of the enterprise and explore new industrial fields.In the face of adversity,Fenghua Advanced Technology has demonstrated strong resistance to pressure and flexibility.Fenghua Advanced Technology adheres to the corporate philosophy of“integrity,focus,innovation,and excellence”,and the company focuses on the core development ideas of “leading technology,capital assistance,innovation driven,and management support”,actively faces the poor operating environment,and comprehensively promotes the transformation and upgrading of the company and its main business.At the same time,the company actively enters the field of mobile and wearable devices,implements the “two-wheel drive” development strategy of connotative development and extensional mergers and acquisitions,and realizes the transformation of the industrial structure through the acquisition of Naidian Technology,which is mainly engaged in the development and manufacturing of flexible boards.This article selects M&A cases in the same industry to study how the electronic component industry can successfully transform under the economic downturn,maintain product competitiveness in the market,and continue to generate revenue.This article takes Fenghua Advanced Technology’s acquisition of Naidian Technology as the research object,analyzes Fenghua Advanced Technology’s M&A motivations based on industry conditions and company development strategies,and uses three performance evaluation methods to research and analyze the performance of mergers and acquisitions,so as to analyze the electronic components industry.The transformation and development of the industry and mergers and acquisitions in the industry provide some enlightenment.The study found that Fenghua Advanced Technology’s M&A motivations were mainly to promote the transformation and upgrading of the industry and customer structure,enhance market competitiveness,and use the synergies generated by mergers and acquisitions to improve the company’s operating conditions.Mergers and acquisitions have indeed brought good performance to Fenghua Advanced Technology.Since Fenghua Advanced Technology’s follow-up integration of M&A resources,the company has strong stamina for development.