Tailor-made "combat plan" for cross-border LED companies to defeat the enemy

In recent years, the explosive growth of the LED industry and the strong support of national policies for the LED industry have caused companies from all walks of life to pour in with funds. For the rise of environmental protection and cross-border LED, whether it is one soldier or thousands of troops, we should do our best. How can we use capital and technical strength to expand across borders? Whether it is a small business or a big strategy, the word "dare" comes first, and heroes will not be judged by success or failure. Tailoring a set of "combat plans" that are easy to handle has become the only way for cross-border LED companies to defeat their enemies.

Li Ka-shing: star effect, turning light into gold

The 2014 Forbes Global Rich List rankings were announced. Li Ka-shing continued to be the richest man in Asia with a net worth of US$31 billion. Throughout the ages, those in high positions have always been rich and talented.

Li Ka-shing’s Cheung Kong Enterprises is mainly engaged in real estate development and strategic investment, while Hutchison Whampoa operates ports and related services, real estate and hotels, retail, energy, infrastructure, investment, etc. In early March 2014, Li Ka-shing showed the media his investment in nano-LED light bulbs. On November 21st, Nanoleaf, the "world's most energy-saving" LED light bulb made famous by the brand effect of "Superman Li", was officially launched in Hong Kong with a price of up to US$35.

After being exposed again by Li Ka-shing, LED lights immediately triggered a Midas touch effect in the Hong Kong stock market, and the stock prices of many LED lighting concept stocks soared. The industrial star effect has won media coverage from all walks of life, and has also attracted more attention to LED lighting in the domestic market.

Xiaomi: Enterprises "join together" and secretly infiltrate Chencang

Domestic Internet companies' involvement in the mobile phone industry and smart home layout began with Xiaomi. It has the shortest and fastest cross-border time and is extremely "lethal".

Xiaomi focuses on independent research and development of smart products, mainly engaged in electronic smart products. In October 2014, Xiaomi launched the Yeelight smart light bulb, which was regarded as an important start for cross-border LED and smart home layout. In November, Xiaomi launched a portable LED lamp priced at 19.9 yuan. In December, Xiaomi Corporation and Midea Group both announced the signing of a strategic cooperation agreement. Xiaomi Technology will purchase 1.29% of Midea's shares for 1.266 billion yuan. In just three months, Xiaomi's series of rapid moves have left laymen stunned and its peers unable to match them.

At the end of January 2015, 13 companies including Yaming, Sunshine, Hongyan, Opple, Philips, Mulinsen, Cred, Tridonic, Yinghui, Bainian, CDH, and Dunge signed a joint statement on jointly building smart lighting with Xiaomi to jointly promote the development of smart lighting. In February, Xiaomi cooperated with Philips to jointly explore the "gold mine" of LED smart lighting.

Xiaomi is fully prepared for a series of ecological chains in the smart home field and is expected to detonate the Internet of Things ecosystem.

Fangda Group: Fell in the sand, trying to thrive first

Fangda Group, which has cross-border LED as early as 2000, can be considered a veteran company, but it has not allowed a small grass to grow into a towering tree in 14 years (it is obviously impossible for grass to grow into a tree, this is only an exaggeration). Faced with the losses caused by the LED business and the dilemma of latecomers catching up, Fangda Group gave up for one year, remained silent for two years, and exploded for one year. It wanted to advance but suppressed first, and the road to saving the country was not easy.

Fangda Group is mainly engaged in building curtain wall systems and materials, solar photovoltaic cells and other businesses. In 2000, Fangda Group, together with the Institute of Semiconductors of the Chinese Academy of Sciences and Nanchang University, jointly researched, developed and produced third-generation semiconductor materials represented by gallium nitride (GaN) and high-tech products such as blue LEDs, white LEDs and full-color displays. I won’t go into detail on the development process in between. According to Fangda Group’s announcement, the LED business suffered a net profit loss of 17.29 million yuan in 2011, accounting for -17% of Fangda Group’s net profit that year.

Xu Shi realized that it was not easy to work in the LED industry. In June 2012, he announced that he would stop the operations of his holding subsidiary Shenyang Fangda Semiconductor Lighting Co., Ltd., and all LED businesses of Fangda Group gradually faded out of the market.

If you think that Fangda Group is "washing hands in a golden basin", you are totally wrong. Two years after the LED business faded out of the market, in 2014, Wang Shengguo, director and vice president of Fangda Group, said that according to the plan, Fangda LED lighting is expected to cover the national grassroots market in three years.

Wait a minute, during the two silent years from 2012 to 2014, was Fangda Group trying to get rid of its shameful losses?

Lihefeng Technology: Start by following the trend, but end without results

The first group of people who used cell phone film protectors worked hard and became rich; the second group of people who applied for cell phone film protectors worked hard and applied more cell phone films. Following the trend is not a bad thing, but it is certainly not a good thing either. If you use the "art of war", you will make mistakes. If you do not have a strategy to seek development across borders, you will either die or live worse than death.

Lihefeng was registered in 1998 and began to produce computer accessories, software, etc. In 2005, it added DVD machines and accessories. In 2012, it crossed over into the LED industry.

Having not yet become familiar with the LED industry, news broke on November 17, 2014 that the boss of Lihefeng, Zhong Gang, and his wife had lost contact. It is understood that Lihefeng owed nearly 400,000 yuan in wages to 62 employees and more than 10 million yuan in supplier payments.

From 2012 to 2014, it was only two years since Lihefeng entered the cross-border LED market. It entered the market when LED was developing at its fastest speed, but it did not get a share of the pie, but ended in a dismal outcome.

Tongfang Shares: Advantages change, scale changes strategy

Change will lead to generalization, generalization will lead to advancement, and advancement will help the world. Chai Jing's "Under the Dome" makes LED people and LED companies realize their heavy responsibilities. "Jiangxiao" is not just a matter of enthusiasm. The scale advantage has been transformed into a strategic advantage, making Tongfang a potential stock in the LED industry to save the environment.

Tongfang Co., Ltd. takes the industrialization of scientific and technological achievements as its model and focuses on the two major fields of information and energy and environment. In 2008, Tongfang Co., Ltd. spent 800 million on the "High-Brightness Light-Emitting Diode LED Chip Manufacturing and Application Industrialization" project. If you have deep pockets, you will invest generously. In 2010, Tongfang Investment invested in building a high-brightness LED application comprehensive industrial base in Nantong, Jiangsu. As of the end of the year, the cumulative investment amount was 549.12 million yuan, but the income generated in 2010 was -11.63 million yuan.

When investment and return were not completely proportional, Tongfang Holdings made strategic adjustments. On October 30, 2014, Zhenmingli invested huge sums of money to deploy energy-saving lighting in Sinopec gas stations. In the same year, Tongfang's overseas wholly-owned subsidiary planned to obtain a controlling stake in Zhenmingli, a Hong Kong-listed company, by subscribing for new shares.

This subscription brings Tongfang one step closer to environmental protection, and at the same time, LED development is also even more powerful. In 2015, Tongfang Holdings Company Zhenmingli changed its name to "Tongfang Youyou" to expand and expand domestic and foreign LED lighting and related energy-saving businesses.

Through large-scale layout, Tongfang’s LED business has developed rapidly, forming an industrial structure with semiconductor chips, general lighting, lighting engineering, and display backlight business as the core.

BYD Lighting: Ten years of accumulation, accumulation and progress

Looking at BYD's growth history since entering the LED industry, it is low-key but still strategic. From 2003 to 2014, BYD changed from a new player in the LED industry to a veteran. Whether it is a veteran or an "old ginger", it is always the "hot" one.

BYD is mainly engaged in automobile business, mobile phone parts and assembly business, secondary rechargeable batteries and new energy business. In 2003, BYD began to enter the LED industry, and its early applications were concentrated in the fields of automotive lighting and mobile phone backlights. To avoid being "marginalized" by the industry, BYD's three-year growth process has led BYD to start paying attention to LED general lighting. With automobiles, IT, and new energy as strong backing, BYD has no worries when crossing borders and is out of control. In 2010, BYD established its own brand - BYD Lighting.

Ten years is not a long time for the development of an enterprise, but it is enough for it to become a person in the industry who is like a "singer when taking a piece of music, and a hero when fighting". In 2014, BYD's LED business achieved total revenue of 514 million yuan, compared with total revenue of 367 million yuan in 2013, a year-on-year increase of 40.05%.

Guangdong Ganhua: Clear goals, use LED to get rid of losses

Duang can get rid of losses in one go. I am afraid only Guangdong Ganhua has this "stunt". In 2011, Guangdong Ganhua, also known as "ST Ganhua", suffered a loss of 196 million yuan that year. In 2012, because of a government subsidy of 72.8325 million yuan included in the current profit and loss (a large part of the subsidies came from subsidies for MOCVD equipment), it got rid of the loss and the risk of delisting.

Guangdong Ganhua mainly manufactures paper and biochemical products. In 2011, it invested 836 million yuan to establish a wholly-owned subsidiary, Deli Optoelectronics, to build an LED epitaxial wafer production project and build an epitaxial wafer production line with 20 MOCVD equipment and supporting chip production lines.

However, the small-scale Deli Optoelectronics started production in the second half of 2014, but has not yet been able to achieve economies of scale, which even caused Guangdong Ganhua's performance to decline in 2014.

Foxconn: Using LED transformation to turn the ship around

The best LED manufacturer in the OEM industry, the best LED OEM manufacturer in the LED industry. They are all advantages but no advantage. When the giant Foxconn intends to use LED to transform, it should understand its own embarrassing situation and realize the "regularity" problem of ship turning around in disaster.

From chip packaging to application, from LED display to LED lighting, Foxconn has a complete and sophisticated layout in the field of LED lighting. "Head" Terry Gou once revealed that the LED industry will be transformed into a transformation of Foxconn, from OEM to independent brand, and from traditional electronics to emerging industries. However, judging from the layout in the past few years, independent brands have not been established, and the OEM road has gone further and further.

Foxconn’s main business is OEM products for major IT brand manufacturers around the world. At the end of 2013, Foxconn's factory in Guizhou was completed and put into operation, with one production line for TVs, LED street lights, and electronic whiteboards. Foxconn intends to transform the LED industry from OEM to independent brand, and from traditional electronics industry to emerging industries.

It is understood that Foxconn’s LED business revenue mainly comes from government orders, brand OEM, and the group’s own lighting replacement.

Although Foxconn has invested in LED in many places across the country, it is difficult to see products marked with the Foxconn trademark on the market.