Listing on the National Equities Exchange and Quotations is not a one-time solution. Companies must squeeze into the innovation layer to have any hope.

Recently, two more LED companies in the LED display industry have officially applied for listing on the New Third Board, namely Shenzhen Lianchengfa Technology Co., Ltd. and Fujian Jingcai Optoelectronics Technology Co., Ltd. If two companies successfully list on the New Third Board, the number of LED display companies listed on the New Third Board will exceed 10.

With the increase of companies listed on the New Third Board, companies will also have more advantages and potential in financing and development, and will also play a positive role in fueling the development of the entire LED industry. For some LED display companies, the New OTC Market has made up for the "shortcomings" in the development of China's capital market, allowing more small and medium-sized enterprises to obtain "admission tickets" to the capital market. While many companies are entering the New Third Board, the competition among companies has become further severe. Listing on the New Third Board is not a one-time solution. Enterprises should better find their positioning after entering the New Third Board. Only by squeezing into the innovation layer can they have more hope.

First of all, the real purpose of the New Third Board is to "cultivate innovative enterprises, cultivate entrepreneurial investors, and cultivate real investment banks." However, in the New Third Board market, small and medium-sized enterprises still face greater business risks. Insiders said that there are too many good companies in China. If they want to compete for a place in the New Third Board capital market, they must strengthen their own "internal strength" construction, continue to innovate in products, constantly surpass in technology, constantly strengthen their own normative construction in management, system construction and other aspects, and create stronger corporate core competitiveness.

Secondly, as far as the current situation is concerned, the LED industry environment is not very prosperous. Price wars are intensifying. Homogeneous and low-tech products are everywhere. The more routine the products, the lower the profits. Many companies are not only unprofitable, but even operate at a discount. Therefore, companies must find a path to produce differentiated products. Only in this way can companies find a better way out. The research and development and production of differentiated products are always inseparable from enterprise innovation. Enterprises' increased investment in product innovation and research and development will eventually form their own characteristics, laying more foundations for enterprises to attract money on the New Third Board. Enterprises will also continue to achieve transcendence due to continuous innovation, and eventually enter higher-level development.

Finally, brand is the soft power of an enterprise, and it is also the core competitiveness of an enterprise to defeat its competitors. A brand is equivalent to the business card of a company or product, with immeasurable potential value. If a company wants to go long term, it must continue to take the road of branding, make good products, and provide good services. The company must give itself a clear positioning, know what it can and cannot do, abandon those ideas that may seem profitable but are unrealistic, and pursue company development more rationally. At the same time, brand improvement will ultimately give companies listed on the New OTC Market greater room for appreciation and development.

Since its birth in 2006, the New Third Board has gone through 10 years. Since its expansion to all small and medium-sized enterprises across the country in June 2016, the New Third Board has also become an important capital market in China. Data show that the New Third Board expanded rapidly last year. As of December 31 last year, there were 5,129 companies listed on the New Third Board, and 3,549 new companies were listed in 2015. In terms of transaction value, the total transaction value in 2015 was 191.06 billion yuan, 28.6 times that of 2014.

In the opinion of industry insiders, the New OTC Market is not a market where all companies can raise funds. The New Third Board is a very snobbish market. After being listed, companies still need to continue to work hard and innovate. They cannot have a one-and-done development idea. They must set more ambitious goals, identify the company's positioning, continue to move towards the innovation layer, and create more opportunities and focus for others to pay attention to. Only then can companies log on the New Third Board have more practical significance.