The elevator connector 1376137-1 and the connecting wire industry have sparked a wave of consolidati

Faced with customers' one-time purchase demand and the trend of industry giant Evergrande, the elevator connector 1376137-1 has sparked a trend of consolidation and even cross-border cooperation with the connecting line industry. The elevator connector department is actively locking in mainland connector factories and preparing for mergers and acquisitions; Mainland wire factory Lixun also launched a merger and acquisition case in Taiwan; After merging with Weihan, Hongzhi aims to achieve a revenue of over 10 billion yuan within three years.

Mainland mobile phone brands and consumer electronics products are growing stronger, and Taiwanese component factories are also adjusting their strategies, shifting from setting up factories in mainland China to directly seeking partners. It is reported that after the independence of Hon Hai's connector department, it is actively evaluating the acquisition of mainland Chinese connector and connecting wire factories to quickly enter the mainland brand supply chain.

It is reported that Yifan Electronic Technology Company's acquisition is not primarily aimed at expanding production capacity, but rather at buying patented technology and customers. The connector factory stated that the priority order for mainland brand factories to choose their supply chain is mainland funded factories, Taiwanese factories, and foreign factories. Therefore, the best way to quickly gain business from mainland brand factories in mobile phones and PCs is to merge with the already established mainland funded factories.

Foxconn is looking for a connector factory in mainland China across the sea, while Lixun, the largest wire factory in mainland China, is looking for Taiwan's connector automation technology in Taiwan. It is understood that at that time, Luxshare acquired Xuande at a price of 6.5 yuan per share (before capital reduction), which was a fixed price transaction, indicating that the connector industry was eager to consolidate the connector factory.

After two years of rectification, Xuande turned losses into profits last year, driving Lixun's performance to jump three levels. The merger of Xuande resulted in a revenue of RMB 3.1 billion (approximately NT $15.5 billion) two years ago, doubling to RMB 4.6 billion (approximately NT $23 billion) last year, and is expected to exceed RMB 8 billion (approximately NT $40 billion) this year.

There are also related mergers and acquisitions in Taiwan, represented recently by the merger of Hongzhi and Weihan. Yuan Wanding, Chairman of Hongzhi, stated that after the merger with Weihan, Hongzhi's revenue is expected to reach 7 billion yuan next year. With the integration of connector and connecting line businesses and the expansion of customer base, Hongzhi's revenue is expected to reach 10 billion yuan in the next three years.

Yuan Wanding stated that the merger of the connecting line factories is to provide more complete services. Weihan's current clients include German uninterruptible power system manufacturer Schneider, Japanese safety control factory, Swiss elevator factory, etc., which can accelerate Hongzhi's entry into the industrial control industry.

Connector manufacturers have stated that currently the world's largest connector component factories, such as Delphi, Tyco, Foxconn, Zhengwei, and Luxshare, have both mastered the layout of connectors and connection lines. After the merger of Hongzhi and Weihan, more Taiwanese factories will follow up and launch merger and acquisition cases in the future.