Six key words to interpret the development status of the LED industry in the first half of the year

The LED industry has experienced explosive growth in the past two years and has become the target of funding from all walks of life. Judging from various aspects in the first half of 2015, competition in the LED market has become increasingly fierce, although the overall growth rate has declined compared to last year; the growth rate of downstream application segments is still rapid. Regarding the development characteristics of the LED industry, we use the following keywords to interpret the development changes of the LED industry in the second half of the year.

700 million, and from January to August this year, the amount of mergers and acquisitions has reached 29.31 billion yuan, and the amount of mergers and acquisitions has increased five times." Zhang Xiaofei said that the cumulative amount of mergers and acquisitions will reach 100 billion in the next two years, and the number of mergers and acquisitions with a scale of more than 500 million yuan will increase. At the same time, mergers will become internationalized, and overseas mergers and acquisitions will also increase simultaneously.

For this reason, if the majority of small and medium-sized enterprises want to get out of the predicament, their products must be refined, specialized, and constantly innovated. The business model must be combined with personalized labels such as e-commerce and crowdfunding. The production model can be through outsourcing, with as little or no production as possible, and at the same time use a vertical and vertical integration model to promote cooperation between industries. Otherwise, you will be on the road to mergers and acquisitions or exit.

Huacan Optoelectronics purchased 100% equity of Yunnan Blue Crystal Technology Co., Ltd. by issuing shares and paying cash. The acquisition of Yunnan Blue Crystal has solved the most important problem of raw materials, and has also made up a key link in Huacan Optoelectronics' efforts to open up the LED upstream industry chain.

The merger of Lifeng Culture and Jinlixiang has become an important key to the innovative profit model of Leyard LED Culture, Sports, Education and Media.

Wanrun Technology acquired 22% of the equity of Auman Technology for 30 million yuan, opening up downstream channels and digesting its packaging production capacity.

GGII predicts that in the second half of 2015, market concentration will further increase, and leading companies in various fields will also have greater technological advantages and economies of scale. With the rapid increase in demand for LED lighting, the LED industry will usher in a peak period of development, and the industry chain will enter a new round of expansion of production and distribution channels to seize more market share.

Keywords: Internet +

“Internet +” appeared for the first time in Premier Li Keqiang’s government work report and became a new national strategy. The LED industry is no exception. Major companies are gearing up to integrate the Internet with the industry, constantly create new products, new businesses and new models, and promote the "Internet +" strategic action.

So what is LED+? It provides another profit growth point for LED companies on the basis of doing a good job in their main business; it provides LED companies with more possible opportunities; it is also a test of the wisdom and courage of LED entrepreneurs. To paraphrase the words of Dr. Zhang Xiaofei, chairman of Gaogong LED, "The + is good when it is good, and the + is bad when it is 'pinched'."

Nationstar Optoelectronics (002449) plans to transfer 100% of the equity and all corresponding rights and interests of Guangdong Desheng held by the Electronics Group for no more than 250 million yuan, opening the door to "LED+" electronic integration. Although Sanxiong Aurora is not a listed company, its "LED + design" concept has already taken the lead.

From this point of view, "Internet +" is speed and flat competition. It is not just a simple intelligent upgrade of products, but also an Internet intelligent upgrade of the industrial chain. LED companies need to understand how to leverage the Internet, rather than simply branding it as the Internet.

Keywords: small spacing

Small spacing has become a popular star product in the current market. Therefore, it places high demands on manufacturers. At the same time, the technical level of users is also a big threshold, and not all manufacturers can produce it. All links are interrelated and indispensable.

LED small spacing will advance to the next stage and become a carrier of the Internet. There are infinite possibilities for the future of small spacing. Although the prospects are promising, at the same time, the entry of a large number of manufacturers has also made competition in the LED small-pitch packaging device market more intense, and there is also a tendency to bargain on price.

Judging from the current domestic LED display packaging situation, the localization trend of small-pitch devices is becoming increasingly clear. Mainland LED packaging companies are working hard to rise and currently occupy a certain market share in the market.

Unilumin Technology’s small-pitch commercial super TV products achieved revenue of 167.7946 million yuan in the first half of the year, accounting for 26.88% of the main business revenue, an increase of 113.01% over the same period last year. During the reporting period, the company’s small-pitch commercial super TV received a total of new orders of 240.9412 million yuan, an increase of 192.72% over the same period last year.

Keywords: smart lighting

The smart lighting market shows huge growth potential in the next few years. According to statistics, the next three to five years will still be the LED replacement stage. Last year, LED only accounted for 40% of the market. There is no doubt that smart lighting will be the next blue ocean market.

In the next five years, the demand for intelligent lighting and intelligent lighting control is transforming from traditional lighting at an alarming rate, which will further promote the development of intelligent lighting systems. In 2020, the total smart lighting market is expected to reach US$8.14 billion, with a compound annual growth rate of 22.07% between 2015 and 2020.

With such growth, it is foreseeable that the market will innovate in all directions. In order to meet the growing demand for lighting control systems, different types of suppliers have entered the lighting control market.

Keywords: Cross-border

Since the first half of 2015, LED companies have been restless, and cross-border has become a new trend in the wave of mergers and acquisitions.

It is understood that Keheng Technology Co., Ltd. has completed the acquisition of Shenzhen Lianteng Technology Co., Ltd., prompting the company to enter the LED terminal industry.

Hongli Optoelectronics’ main business is LED. In addition, it has invested in 18% of the shares of Dina Technology, and plans to invest in Shenzhen Huishitong to enter the Internet of Vehicles industry. In terms of Internet finance, Hongli Optoelectronics has invested in Cayman Netli, holding 10% of its equity.

On the evening of July 22, Jufei Optoelectronics (300303.SZ) announced that it planned to acquire 51% of LiveCom Limited owned by Newinfo Holdings Limited, and use its Hong Kong SBO telecommunications operating license to enter the Internet information and communications industry.

Lianchuang Optoelectronics announced the acquisition of Fang Dazhi Control and increased its capital, thus entering the field of Internet of Things.

Keywords: production expansion

The peak season for LED factories this year is later than expected, but there are still manufacturers that have launched plans to raise funds to expand production.

With the rapid growth of LED lighting demand, Hongli Optoelectronics, as the leader in white light packaging, has rapidly expanded its business scale in recent years. The capacity utilization rate of the SMD LED production line in the last three years has increased year by year. Recently, 420 million yuan has been earmarked to expand SMD LED production.

Mulinsen, also a leader in packaging, has also launched an additional issuance, planning to raise an additional 2.3 billion yuan to fully expand packaging and lighting production capacity.

The main infrastructure construction of Xiamen Sanan Optoelectronics Co., Ltd., a wholly-owned subsidiary of Sanan Optoelectronics’ investment project, has been completed, and the ordered 100 cavities (converted into 2-inch 54-chip machines, equivalent to 200 units) MOCVD equipment has reached 32 cavities.

Of the 600 million yuan raised by Jufei Optoelectronics, 320 million yuan was used for the backlight LED product expansion project, 214 million yuan was used for the lighting LED product expansion project, and 66 million yuan was used for the expansion of the LED technology research and development center.

Everlight passed NT$5 billion in convertible bonds to expand its factory and enrich its working capital. There are also plans to significantly increase production in the next three years, and it has been finalized to spend 1.3 billion yuan to purchase a new Miaoli Tongluo factory.