Seeking cross-border change, many LED companies have achieved impressive results

Although product homogeneity and intense price competition have caused the LED industry to face an unprecedented embarrassing situation, some listed companies in the LED industry have significantly improved their operating performance by creating dual main businesses and expanding into new fields. The author combed through the 2015 annual report and the first quarter report of 2016 and found that while the performance of Denon Optoelectronics, Alto Electronics, Silan Microelectronics and others has declined to varying degrees, Unilumin Technology, Lianjian Optoelectronics, Leyard, Ruifeng Optoelectronics and Wanrun Technology, which are actively pursuing changes, have achieved more than 100% growth. The reason is that these companies have embarked on a path of transformation and change suitable for their own development.

Dual-main business layout has gradually become a trend

Judging from the layout of some LED listed companies with strong performance growth, most of them are maintaining their original international and domestic LED product market shares while implementing a dual-main-business or even multiple-main-business strategy and actively exploring new profit growth points.

Lianjian Optoelectronics’ LED business currently accounts for only 1/5 of its total volume, and instead, the prototype of the “Digital Communication Group” has been formed. With the enhancement of the company's marketing service capabilities, asset scale and profitability, Lianjian Optoelectronics' net profit in the first quarter reached 56.8517 million yuan, a year-on-year increase of 106.87%. During the reporting period, Lianjian Optoelectronics continued to acquire the remaining equity of Precision Focus through its wholly-owned subsidiary. The company's comprehensive online communication strength was strengthened, and the communication industry chain with public relations services, Internet advertising, interactive marketing, outdoor media networks, digital advertising equipment, etc. as core modules was further improved.

The cultural and sports industries have become the first choice for cross-industry

In the cross-industry and multi-main business layout of LED listed companies, the cultural media and sports industries have become the mainstream directions of their choice.

Similar to Lianjian Optoelectronics, Leyard is one of the current LED companies that has expanded into the cultural media business. Through the acquisitions of Kinda Lighting, Internet Yida, Lifeng Culture, Jinlixiang and Pinneng Optoelectronics, the integration effect is obvious. According to Leyard, relying on the successful case of the perfect integration of audio-visual technology and cultural creativity at the opening and closing ceremonies of the 2008 Beijing Olympic Games, Leyard integrated the brand advantages, creative advantages, product technology advantages, experience advantages and other resources of various subsidiaries within the group in the field of audio-visual culture to create a new "urban culture, tourism, and performing arts" business model. According to the cultural tourism planning of each city, it provides "audio-visual culture solutions" and cultural performing arts operation services for its urban cultural tourism construction. It should be pointed out that Leyard has divided its business sectors into cultural sectors and technology sectors since 2016.

When it comes to the cross-border sports industry, we have to mention Lehman Holdings. As early as 2011, Lehman Holdings began to invest in the sports industry. At present, the company has formed a development pattern with LED as its main business and extending to the sports media field. The company stated that on the one hand, it will continue to optimize and integrate the LED business, focusing on increasing the development of overseas and high-margin markets; on the other hand, it will comprehensively increase the layout of the sports industry, deepen the football industry chain, increase the development of business interests in the domestic and overseas football field, create a good sports business model, and strive to improve the company's comprehensive profitability.