Interpreting Frontier Technology and Markets: Seeking Investment Opportunities in Emerging Industries in 2011
Interpreting Frontier Technology and Markets: Seeking Investment Opportunities in Emerging Industries in 2011
——The Emerging Industry Technology and Investment Forum will be held in Hangzhou in May
In the 12th Five-Year Plan "Strategic Emerging Industries Development Plan" officially announced by the State Council, new energy, energy conservation and environmental protection, new energy vehicles, new materials, biotechnology, high-end equipment manufacturing, next-generation information technology, and other fields are clearly listed as the seven major strategic emerging industries for the future.
According to the plan, by 2015, the added value of the seven strategic emerging industries will account for 8% of GDP, rising to 15% by 2020. It can be expected that strategic emerging industries will gradually become the leading force driving national economic development over the next five years.
As a strategic emerging industry, during the 'Twelfth Five-Year Plan' period, the state will provide strong support in terms of industry policies, tax incentives, and capital investment. The industry's output value will increase substantially, bringing more and greater investment opportunities to the market, with a bright 'financial outlook' ahead.
In response, many investment institutions with keen vision have quickly 'locked in' their targets on this big cake of emerging industries.
Gaogong Online, a leading domestic industrial research and media institution, will invest 20 million yuan in May to establish a research institute in Hangzhou, Zhejiang, dedicated to industrial economics and corporate research in the emerging industries sector — the "Gaogong Industry Research Institute (Preparatory)". The institute will assemble an industry analyst team of more than 100 people and will become the largest emerging industry research institute in China.
The research areas of the Gaogong Industry Research Institute (Preparatory) mainly include: new energy (solar and wind power generation, energy storage, electricity consumption, etc.), the Internet of Things (cloud computing, RFID, sensing, smart grids, etc.), power batteries, materials and equipment, LED, new materials and equipment, etc. It will provide relevant governments, the investment community, and enterprises along the industrial chain with a wide range of professional consulting services, including industry research, development strategies, industrial planning, industrial competitiveness, industrial investment, and IPO listings, based on the fields of new energy, LED, IoT, power batteries, and new materials.
From May 19 to 20, 2011, the "2011 Gaogong Emerging Industry Technology and Investment Forum", hosted by the Gaogong Industry Research Institute (in preparation), will grandly kick off at the Hangzhou Longxi Four Points by Sheraton Hotel.
The forum will focus on four emerging industry hotspots: LED, IoT, power batteries, and new materials. Through expert technical analysis presentations, industry research and investment strategy reports, outstanding enterprise project roadshows, project investment matchmaking and other formats, it aims to help investors understand emerging industry technologies and market trends, and identify the development and investment opportunities in emerging industries.
The forum will bring together renowned strategic investors from home and abroad, VC/PE partners, fund investors, investment bank managers, major brokerage analysts, government officials, accounting firm accountants, law firm lawyers, chairmen of well-known enterprises in various fields, research institution analysts, industrial and economic media reporters, and other elites from all walks of life to discuss the relevant technologies and market developments in OLED, LED, IoT, power batteries and new materials industries, and to conduct industrial investment strategy analysis.
LED companies are fueling an IPO boom. Which companies are queuing up to go public?
According to statistics from the Gaogong LED Industry Research Institute (GLII), the total output value of China's LED industry in 2010 reached RMB 126 billion, a year-on-year increase of 50%. Among them, the total output value of LED epitaxial chips was RMB 4 billion, up 100% year-on-year; LED packaging was RMB 27 billion, up 35% year-on-year; LED applications were RMB 95 billion, up 58% year-on-year.
In 2010, LED upstream investment was highly active, and the investment demand for MOCVD in the Chinese LED market became so frenzied that the two global equipment suppliers, Veeco and AIXTRON, saw their production capacity bottlenecks arrive ahead of time—catching them somewhat off guard. During this period, there were even rumors that orders would have to be postponed until 2012 for delivery.
Is there still investment room in the future LED epitaxial chip industry? When will the huge LED lighting market open? How should capital be deployed? Dr. Zhang Xiaofei, President of the Gaogong Industry Research Institute, will deliver the 2011 China LED Industry Investment Report (Capital Determines the LED Industry Landscape), analyzing the LED industry market and investment landscape.
As the LED lighting market continues to open up, a patent war in the LED industry is about to break out. Dr. Liang Bingwen, a researcher at the Suzhou Institute of Nano-Tech and Nano-Bionics (SINANO) of the Chinese Academy of Sciences, stated that patent issues will affect the growth and strengthening of China's LED enterprises.
In 2010, Nationstar Optoelectronics (002449.SZ), Changelight (300102.SZ), and Ledman Optoelectronic (300162.SZ) successfully entered the capital market. By 2011, the IPOs of Hongli Optoelectronics and Unilumin Technology had passed review, and LED had become the darling of the capital market. According to statistics from the Gaogong LED Industry Research Institute (GLII), more than 50 LED companies in China are preparing to go public, with five or six LED companies in Shenzhen alone still preparing to list, some of which have already submitted applications to the CSRC.
In addition, Professor Liang Rongqing, Director of the Institute of Electric Light Sources at Fudan University, will provide a detailed explanation of the current development status and future prospects of OLED technology, and analyze the opportunities and risks of OLED investment.
IoT – The Next Economic Growth Point
Among the seven strategic emerging industries, the new-generation information technology industry focuses on developing new-generation mobile communications, next-generation internet, triple-network convergence, IoT, cloud computing, and other fields.
"IoT" is regarded as the third wave of the world's information industry, following computers and the internet. Industry experts believe that, on the one hand, IoT can improve economic efficiency and greatly save costs; on the other hand, it can provide technological impetus for the recovery of the global economy. The U.S. authoritative consulting firm FORRESTER predicts that by 2020, the volume of machine-to-machine communication worldwide will reach a ratio of 30:1 compared with person-to-person communication. Therefore, "IoT" is called the next trillion-level communication business.
At present, the United States, the European Union and others are investing heavily in in-depth research and exploration of IoT. Our country is also attaching great importance to IoT research. The Ministry of Industry and Information Technology, together with relevant departments, is conducting research on new-generation information technology in order to formulate policy measures that support the development of new-generation information technology.
However, the business model of IoT has always been a focus of attention and discussion in industry and investment circles. Experts including Professor Zheng Lirong, professor at KTH Royal Institute of Technology in Sweden and Dean of the Fudan University Wuxi Research Institute, will focus on explaining the key technologies of IoT and propose new ideas for innovation in IoT business models.
Power Battery – Lithium Battery Remains the Focus of Future Development
Power batteries have become a research hotspot in today's world, mainly due to the large increase in private cars and the growing deterioration of environmental pollution. At the same time, the scarcity of oil resources has forced countries around the world to seek new energy sources and develop new means of transportation. Therefore, the development of power batteries and electric vehicles has been given a more important position.
During the "11th Five-Year Plan" period, China faced enormous pressure for energy conservation and emission reduction. Driven by the competent government authorities, China's investment in new energy vehicle R&D has continued to increase. Taking the Ministry of Science and Technology's "863" Plan as an example, from 2006 to 2010, the state invested a cumulative total of 1.16 billion yuan in the "863" Plan, mobilizing local governments and social forces to invest a total of 11 billion yuan in new energy vehicle R&D and supporting industries. Among this, investment in the power battery industry alone reached as high as 6 billion yuan.
In the development plan for new energy vehicles, the lithium battery industry is undoubtedly the most important and most promising sector. Although in the short term, nickel-metal hydride batteries remain the mainstream battery type for hybrid electric vehicles, and lithium iron phosphate batteries will be widely used in the field of pure electric vehicles and plug-in hybrid electric vehicles, in the medium and long term, with technological breakthroughs in lithium iron phosphate batteries and cost reductions, lithium batteries are expected to be further applied to hybrid electric vehicles.
In the next 5-10 years, electric vehicles will gradually mature, and the promotion of electric vehicles will drive explosive growth in demand for lithium battery-related materials. As an effective means of stimulating the economy and conserving energy and reducing emissions, electric vehicles have become a key focus of policy support from governments around the world, and lithium-battery electric vehicles will become the mainstream of the future. As a core component, the lithium battery industry will see more than a hundredfold growth in scale. Professor Yang Li, Deputy Director of the Institute of Automotive Power Battery Materials at Shanghai Jiao Tong University, will highlight for the audience the new trends in the technological development of power-type lithium-ion secondary batteries.
New Materials - Entering a Period of Rapid Expansion
As the foundation and pioneer of high technology, new materials have an extremely wide range of applications. Together with information technology and biotechnology, they have become the most important and promising fields of the 21st century.
New materials, along with information and energy technologies, are known as the three pillars of today's scientific and technological development, and are also at the forefront of high-tech development.
Since the birth of new materials, national policies have consistently provided substantial support, and the new materials industry has gradually grown under this policy backing. In recent years, the market growth rate of products related to China's new materials sector has remained above 10%, with some important new material varieties even exceeding 20%. Currently, the materials industry holds an important position in China's national economy, with the entire new materials sector accounting for approximately 28% of the national GDP.
As a development priority, the "12th Five-Year Plan" for the new materials sector will support the development of three categories: frontier technologies, strategic emerging industries, and key industries. The corresponding approaches are to seize the commanding heights, cultivate growth points, and transform and upgrade traditional industries. Key industries in the new materials sector include petrochemicals, steel, non-ferrous metals, light industry, and building materials.
Relevant analysts point out that the investment space for new materials is vast, with new materials serving as the material foundation of manufacturing currently in a period of rapid development. The annual growth rate of China's new materials industry market will remain above 20% in the coming years, with high odds of successful capital intervention, maintaining a rapid expansion period for some time to come.
However, in the LED field, there is a surplus phenomenon in epitaxial materials investment. A senior analyst from the New Materials Project Team of the GaoGong Industry Research Institute (in preparation) will present an LED-related materials market research report, analyzing the current surplus situation in epitaxial materials investment.
About the 2011 GaoGong Emerging Industry Technology and Investment Forum
Time: May 19-20, 2011
Location: Longxi Banquet Hall, Four Points by Sheraton Hangzhou Longxi Hotel
Forum official website: http://www.gg-led.com/2011xxforum.html
Organizing Committee Contact Information
Xie Suyun (Jason)
0755-26981898-845