(Text / high-tech LED reporter Hu Yanling) Last year's LED display company Zhou Ming Technology (SZ.300232) recently began the expansion process after the listing.
At the end of February, the company decided to invest 360 million yuan to build a LED application product production base in the Zhangpu section of Daya Bay, Huizhou, Guangdong Province. At the beginning of March, the company announced that it plans to invest 33 million yuan to acquire a 60% stake in Shenzhen Redio Optoelectronic Technology Co., Ltd. (hereinafter referred to as Redio) by increasing capital and acquiring part of the equity.
When asked if the company started a new round of expansion, Lin Mingfeng, chairman of Chau Ming Technology, told Gaogong LED: "Expansion is the inevitable result of the industry's rising period." He revealed that the company chose to build production in Huizhou. The base is because the factory for the expansion of the investment is still not enough, so it will be relocated.
Redio is a manufacturer specializing in the production of LED shaped screens. It is understood that although the market capacity of the special-shaped screen is smaller than that of the standard screen, the gross profit margin is relatively high. Zhouming Technology's choice to control Redio will not only increase the performance of the display business, but also properly compensate for the gross profit margin of related products.
On February 29, Zhouming Technology released the 2011 annual performance report. The data shows that the company's total operating income in 2011 was 542 million yuan, an increase of 8.14% over the same period of the previous year; the net profit attributable to shareholders of listed companies was 51.6 million yuan. In the same period last year, it decreased by 7.88%. For the decline in net profit, the explanation in the report is mainly because the company is in the period of expansion, the business scale and personnel increase rapidly, and the management expenses and sales expenses increase rapidly, which affects the current profit.
Increased competition
According to the statistics of the High-tech LED Industry Research Institute (GLII), the output value of China's LED display in 2011 reached 21.9 billion yuan, an increase of 18%. At the same time, GLII expects that the total output value of China's LED display industry will grow steadily from 10% to 20% in 2012-2015.
In recent years, the rapid development of the LED display industry has also led to the rapid rise of a number of innovative enterprises in China. As of the end of February 2012, there are 5 companies with LED display as their main business (Leiman Optoelectronics (SZ.300162), Alto Electronics (SZ.002587), Chau Ming Technology, Lianjian Optoelectronics (SZ.300269) Liard (SZ.300296)) Successful IPO landed in the capital market.
"The LED display industry is also so big, and the number of listed companies is also not conducive to the development of the industry." Lin Weifeng said. Coincidentally, Le Man, chairman of Lehman Optoelectronics, also said in an interview with Gao Gong LED reporter that LED display can not accommodate too many listed companies as a segment, and four or five are enough.
However, the current situation is that in addition to the five companies that have already been listed, there are still many LED display companies listed in the queue, and the fierce competition in the market can be imagined. “The display will go through the shuffling process.†Lin Weifeng said, “Enterprises that value innovation can survive and get better and better.â€
For those enterprises that have already landed in the capital market, rapid expansion has become a powerful weapon to seize the right to speak in the industry.
"As listed companies gradually increase, in order to seize the market, with the power of the capital market, listed companies can achieve a rapid expansion process." Industry insiders said.
Looking for a new way out
The year-on-year decline in gross profit of display screens has also led companies to think about new ways. The LED lighting market has naturally become a new choice.
According to GLII statistics, LED display showed a trend of increasing prices in 2011. The annual shipments increased by 47.5% year-on-year, but the price dropped by 20%. In comparison, GLII expects that the LED lighting market will reach 100 billion yuan in 2012, which is undoubtedly a bigger cake for display companies.
At the end of last year, Alto Electronics issued an announcement to use some of the over-raised funds of RMB 21,183,600 to increase its investment in the LED lighting application project of Shenzhen Alto Optoelectronics Technology Co., Ltd.
In addition, Lehman Optoelectronics and Lianjian Optoelectronics have also entered the LED lighting business in different ways.
The battle for LED displays is spreading to the field of LED lighting.
Lin Weifeng revealed to reporters: "As of now, the street lamps installed by Chau Ming Technology have accumulated more than 100,000 baht. LED lighting accounts for about 20% of the company's business, and this year will increase the proportion of LED lighting business." For the indoor lighting market, He is equally optimistic.
At the end of February, the company decided to invest 360 million yuan to build a LED application product production base in the Zhangpu section of Daya Bay, Huizhou, Guangdong Province. At the beginning of March, the company announced that it plans to invest 33 million yuan to acquire a 60% stake in Shenzhen Redio Optoelectronic Technology Co., Ltd. (hereinafter referred to as Redio) by increasing capital and acquiring part of the equity.
When asked if the company started a new round of expansion, Lin Mingfeng, chairman of Chau Ming Technology, told Gaogong LED: "Expansion is the inevitable result of the industry's rising period." He revealed that the company chose to build production in Huizhou. The base is because the factory for the expansion of the investment is still not enough, so it will be relocated.
Redio is a manufacturer specializing in the production of LED shaped screens. It is understood that although the market capacity of the special-shaped screen is smaller than that of the standard screen, the gross profit margin is relatively high. Zhouming Technology's choice to control Redio will not only increase the performance of the display business, but also properly compensate for the gross profit margin of related products.
On February 29, Zhouming Technology released the 2011 annual performance report. The data shows that the company's total operating income in 2011 was 542 million yuan, an increase of 8.14% over the same period of the previous year; the net profit attributable to shareholders of listed companies was 51.6 million yuan. In the same period last year, it decreased by 7.88%. For the decline in net profit, the explanation in the report is mainly because the company is in the period of expansion, the business scale and personnel increase rapidly, and the management expenses and sales expenses increase rapidly, which affects the current profit.
Increased competition
According to the statistics of the High-tech LED Industry Research Institute (GLII), the output value of China's LED display in 2011 reached 21.9 billion yuan, an increase of 18%. At the same time, GLII expects that the total output value of China's LED display industry will grow steadily from 10% to 20% in 2012-2015.
In recent years, the rapid development of the LED display industry has also led to the rapid rise of a number of innovative enterprises in China. As of the end of February 2012, there are 5 companies with LED display as their main business (Leiman Optoelectronics (SZ.300162), Alto Electronics (SZ.002587), Chau Ming Technology, Lianjian Optoelectronics (SZ.300269) Liard (SZ.300296)) Successful IPO landed in the capital market.
"The LED display industry is also so big, and the number of listed companies is also not conducive to the development of the industry." Lin Weifeng said. Coincidentally, Le Man, chairman of Lehman Optoelectronics, also said in an interview with Gao Gong LED reporter that LED display can not accommodate too many listed companies as a segment, and four or five are enough.
However, the current situation is that in addition to the five companies that have already been listed, there are still many LED display companies listed in the queue, and the fierce competition in the market can be imagined. “The display will go through the shuffling process.†Lin Weifeng said, “Enterprises that value innovation can survive and get better and better.â€
For those enterprises that have already landed in the capital market, rapid expansion has become a powerful weapon to seize the right to speak in the industry.
"As listed companies gradually increase, in order to seize the market, with the power of the capital market, listed companies can achieve a rapid expansion process." Industry insiders said.
Looking for a new way out
The year-on-year decline in gross profit of display screens has also led companies to think about new ways. The LED lighting market has naturally become a new choice.
According to GLII statistics, LED display showed a trend of increasing prices in 2011. The annual shipments increased by 47.5% year-on-year, but the price dropped by 20%. In comparison, GLII expects that the LED lighting market will reach 100 billion yuan in 2012, which is undoubtedly a bigger cake for display companies.
At the end of last year, Alto Electronics issued an announcement to use some of the over-raised funds of RMB 21,183,600 to increase its investment in the LED lighting application project of Shenzhen Alto Optoelectronics Technology Co., Ltd.
In addition, Lehman Optoelectronics and Lianjian Optoelectronics have also entered the LED lighting business in different ways.
The battle for LED displays is spreading to the field of LED lighting.
Lin Weifeng revealed to reporters: "As of now, the street lamps installed by Chau Ming Technology have accumulated more than 100,000 baht. LED lighting accounts for about 20% of the company's business, and this year will increase the proportion of LED lighting business." For the indoor lighting market, He is equally optimistic.
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