Analysis of the development dilemma and status quo of LED screen

"Analysis of the Development Dilemma and Current Situation of LED Screens" After LED screens experienced several rounds of price increases last year, there was news of LED lamp bead price increases at the beginning of the new year. Due to vicious price competition in the past few years, profits have bottomed out and even losses On the edge of the market, these price increases are a return to the rational system of LED screen prices, and the new economy has also come along with the development of LED screens, creating new opportunities. The Lantern Festival has passed, which means that the Spring Festival of 2017 is officially over. For the LED screen industry, 2017 is a very strange year, but this strangeness will become the driving force for us to move forward.

The pace of development and change is getting faster and faster, and every year will be full of strangeness. In the new year, the development of the LED screen industry will undergo changes such as "increasing growth, industry reshuffle, moving towards Industry 4.0, deepening the field of intelligence, etc. The field of intelligence is still hot, and "intelligence" has been a hot spot in the development of the industry in the past two years. , and many companies have invested in it.

Smart lighting systems based on LED screen street lights have begun small-scale demonstration applications; ZigBee, Bluetooth, WiFi and other communication protocols and interfaces have their own advantages. Huawei, ZTE and other communication giants have entered in a large scale and are actively deploying. Looking to the future, the improvement of light quality and the integration of smart lighting systems are still the focus of lighting applications. In 2017, new technologies and economic changes such as intelligence, Internet +, and sharing economy will accelerate the progress of semiconductor lighting technology and the expansion of application fields.

At the same time, with the successive introduction and implementation of national plans and projects such as the "Thirteenth Five-Year Plan" semiconductor lighting industry plan and "Green Lighting Phase Four", the semiconductor lighting industry will usher in new development opportunities and challenges in 2017. In addition to the integration with the new generation of information technology such as the Internet of Things and big data, the trend of integration between LED screens and intelligent manufacturing, LED screens and cultural industries, and manufacturing and services has become more obvious. In addition to smart lighting, with the access of Internet of Things (IoT) sensors and the development of mobile Internet technology, the cities we live in are becoming more and more intelligent, and the construction of smart cities has also brought unlimited opportunities to the LED screen lighting industry. imagination.

The pace of listing is constant. After Opple Lighting and Inventronics officially landed in the capital market in 2016, on January 11, 2017, Hengdian Group Debon Lighting Co., Ltd. made an initial public offering of shares and applied for listing, and successfully passed the China Securities Regulatory Commission. review. Debon Lighting plans to issue 60 million new shares, which will be listed on the Shanghai Stock Exchange. In the same month, the IPO of Sanxiong Aurora Lighting was approved by the China Securities Regulatory Commission.

The beginning of the new year, on the one hand, is the promotion of the "One Belt, One Road" and energy conservation and emission reduction in the domestic "Thirteenth Five-Year Plan" policy, which will accelerate the development of the popularization of semiconductor lighting and LED screen lighting. On the other hand, the international situation is also constantly changing. Especially after the new US president took office, he released high tariffs, revitalized the US manufacturing industry, and trade protection with a tough attitude, which made people feel uneasy about the trade competition between China and the US. The actual impact of such a situation on exports is unknown, but some analysts believe that the pressure on China's manufacturing industry is huge, and it will be even more difficult for Chinese companies to enter the North American market. In 2017, there will be ups and downs, and we will continue to roam the rivers and lakes amidst many unknowns.

The New Third Board is another channel for corporate financing, and LED screen companies are more active on the New Third Board. In 2016, more than a dozen companies have been listed one after another. On January 3, 2017, according to the announcement of the National Equities Exchange and Quotations System for Small and Medium-sized Enterprises, the listing application of Xiamen Baiming Optoelectronics Co., Ltd. was approved.

In addition to these companies, there are still a group of companies on the road to listing. In 2017, it is believed that more companies will appear on the list of listed companies. In the unfamiliar year of 2017, the LED screen industry will face the above five major changes, perhaps far less than these.

Enterprises need to be vigilant as early as possible, plan ahead and take countermeasures to bring new development trends for the future development of the LED screen industry. Behind the price increase, on the one hand, the elimination of backward production capacity has led to the contraction of the supply side. After the upstream chip end of the LED screen has been reshuffled, the production capacity of backward chips has been gradually eliminated, and the expansion of new domestic supply has dropped sharply. Since 2016, the prices of LED screen chips and packages have risen one after another, and the industry has entered an era of stable income from an era of excessive competition.

The other side is the change in market demand. Under the background of the ban on Bering and other backgrounds, the penetration of LED screen lighting is accelerated, and the development of smart lighting for LED screens and the steady growth of downstream demand such as small-pitch LED screens have become demand drivers. Just at the beginning of 2017, Sanan Optoelectronics, the leader in LED screen chips, issued a price increase notice to the downstream, and some of its products increased prices by 8%. Some analysts believe that the overall supply and demand pattern of the LED screen industry is continuing to improve. The part of Sanan Optoelectronics’ price increase is mainly concentrated in the range of small and medium power chip products. The price increase in the off-season reflects that industry competition has gradually slowed down. The beginning of a new round of price increases in the industry.

Recently, news came out that the price of some lighting lamp beads in Mulinsen will be raised by 15% to reduce the pressure brought by rising raw material prices. For a long time, the low-price competition in the industry continued, but in 2016, there was a rare wave of price increases. According to CSA Research data, the prices of upstream and midstream chips and devices have risen as a whole.

The increase in demand in the downstream market and the increase in raw materials, accessories and labor costs have driven up prices across the supply chain. Since the second half of 2016, the average price increase of LED screen upstream chip products has been about 10-15%, and the price increase of midstream packaging devices has been 5-10%. Combined with the growth of LED screen chip production capacity and demand, some insiders believe that the supply of LED screen chips may be in short supply in 2017.

However, under the price increase cycle driven by demand growth and rising costs, uncompetitive companies will be eliminated, and orders will gradually be concentrated in various major manufacturers. With the further increase in the concentration of the LED screen industry chain, the industry chain The pattern continues to solidify, and industry leaders benefit deeply. Among them, CSA Research data shows that due to the rapid rise of small-pitch LED screen display technology in 2016, display applications ushered in a new wave of growth, with a scale of about 54.8 billion yuan, a year-on-year increase of 29%, accounting for 12.8% of the overall application market. Driven by urbanization, the Internet of Things, and smart city construction, small-pitch LED screens continue to make efforts in the field of large-screen splicing, accelerating penetration, and competing strongly with DLP and LCD products. It is expected that in 2017, the domestic small-pitch LED screen market will continue to grow. Rapid growth, with a growth rate of more than 40%.

Towards Industry 4.0, with the help of a strong demographic dividend, China has formed a strong international competitiveness and also occupies a pivotal position in the global economy. With the weakening of the demographic dividend, a lot of domestic manufacturing capacity has begun to transfer abroad. The previous way of maintaining competitiveness is unsustainable. Transformation and upgrading have become a problem for all manufacturing industries. From the perspective of the country, my country is also actively promoting the new industrial revolution. Among them, "Made in China 2025" emphasizes innovation-driven, intelligent transformation, strengthening the foundation, and green development, and accelerates the transformation from a manufacturing power to a manufacturing power. Intelligent equipment and products, promote the intelligentization of the manufacturing process, focus on the construction of digital factories, deepen the application of the Internet in the manufacturing industry, and provide personalized products.

In addition, our country has also established a leading group for the construction of a national manufacturing power, and various measures have revealed the importance of the national level. It is reported that in order to further promote the implementation of the "Made in China 2025" strategy, the Ministry of Industry and Information Technology will revise and improve the "Made in China 2025" sub-provincial and municipal guidelines in 2017 to guide local differentiated development and the rational distribution of productivity in key areas. At the same time, deepen the pilot demonstration of cities (clusters), and promote 20 to 30 cities with good basic conditions and strong demonstration drive to try first; launch the National New Industrialization Industry Demonstration Base Excellence Improvement Plan, and determine the first batch of "Made in China 2025" excellence improvement pilot demonstrations Base, the future global economy, to maintain strong competitiveness, in addition to the completeness of the industrial chain, equipment is an important aspect, equipment replaces labor, combined with equipment for online quality control, while improving production efficiency, product quality, and efficient production Cost-effective products are an important factor to maintain strong competitiveness.

As far as the field of semiconductor lighting is concerned, many companies attach great importance to intelligent manufacturing, and have already begun to practice in terms of informatization and manual replacement. For example, Jinko Electronics has upgraded the equipment automation of Industry 4.0 to reduce manual participation in production and reduce labor costs. At the same time, it has optimized the internal network and management platform to improve the overall production efficiency and production output value. Sunshine Lighting implements "machine replacement" to improve efficiency and reduce costs.

With the cost reduction pressure brought about by rising raw material prices and labor costs, more companies will be driven to automate production lines. "Reshuffle" continues, mergers and acquisitions integration is one of the main themes of the industry in recent years. According to CSA Research data, in 2016, there were 40 important merger and integration transactions in the semiconductor lighting industry, and the total amount of transactions disclosed exceeded 22 billion yuan.

In the past 2016, many large companies made frequent moves and increased their investment. However, there were news of the closure of LED screen e-commerce dark horse Pinyi Lighting, Zhejiang Zhongzhou Optoelectronics and many other companies, which made people sigh. Just in the past January, Wang Gongjie, the legal representative of Zhongshan Fortes Lighting Co., Ltd., announced in his personal WeChat circle of friends that Fortes had suffered serious losses and was insolvent due to various reasons, and had applied to the court for bankruptcy liquidation. With the steady improvement of industrial concentration, the industry competition pattern has taken shape.

The polarization of enterprise development is obvious. On the one hand, large enterprises or enterprises with certain characteristics and core competitiveness have achieved rapid development, and advantageous resources have further gathered in industry giants, and a galaxy-based industrial group with leading enterprises as the core has gradually formed; on the other hand, a large number of Small LED screen companies relying on low cost for homogeneous competition have meager profits under the double pressure of rising costs and falling prices, and it is difficult to survive. Some insiders believe that at this stage, too many practitioners enter the LED screen lighting industry, "survival of the fittest, survival of the fittest". Being merged and acquired is beneficial to the development of the industry. No matter how cruel and intense the process is, mixed with joys and sorrows, the continued increase in industrial concentration is an irreversible trend. It will be more of a matter of time before small LED screen companies without competitiveness will be swallowed up.

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