[Text / high-tech LED Ganqin] In the first half of the year, due to the price decline caused by the fierce domestic market competition and the decline in gross profit margin, the operating performance of LED backlight enterprises has declined to a certain extent.
The semi-annual report of Zhaochi Co., Ltd. showed that the company achieved operating income of 2.641 billion yuan in the first half of the year, a decrease of 21.54% over the same period of the previous year, and a net profit of 270 million yuan, down 4.49% from the same period of the previous year.
Quan Jinsong, vice chairman and executive vice president of Zhaochi, said that the company’s profit in LED backlights has dropped sharply in the first half of the year. “The overall sales volume has increased by 50%, and the output value has increased by 25%. However, the profit is only 50-60% last year. ."
The decline in profits is not a case of Zhaochi. The semi-annual report of Jufei Optoelectronics shows that the total operating income of the company is 4,631,200,000 yuan, down 13.49% from 48,125,250 yuan in the same period of the previous year; the net profit is 67,954,400 yuan, down from 86.5151 million yuan in the same period of the previous year. 18.77%.
Judging from the composition of the company's main business, the first half of the year, Jufei photoelectric backlight LED business realized operating income of 3,681,340 yuan, a decrease of 11.07% over the same period of the previous year.
Ju Jinghuang, director of Jufei Optoelectronics, explained that there are two main reasons for the decline in performance. First, the demand for the mobile phone market has slowed down. “After the mobile phone screen has developed to 5.5 inches, the growth space is not very large, and the brightness of the mobile phone has also increased. The amount of LED backlight devices is reduced."
"Secondly, the market competition also comes from the decline in prices. The main reason is that with the advancement of technology, improvement of technology, efficiency improvement and other factors, the driving price is declining." Yin Jinghuang said that such price reduction belongs to Moore's Law.
Li Cheng, deputy general manager of Guoxing Optoelectronics, believes that the LED backlight market space is already full, although the cake is so big, but every company is trying its best to grab the share.
Recently, Ruifeng Optoelectronics announced that the company intends to purchase 85% of the total shares of Lingtao Optoelectronics from Wang Weiquan and Peng Xiaoling by issuing shares and paying cash, and issued 11.09 million yuan to Wang Weiquan and Peng Xiaoling respectively at a price of 9.08 yuan/share. Shares and 580,000 shares, the total transaction price of the underlying assets is 200 million yuan.
Ruifeng Optoelectronics said that after the issue of shares and payment of cash to buy assets, the company will quickly cut into the small and medium size backlight field.
Gaogong LED found that the growth rate of the domestic mobile phone market slowed down significantly in the first half of this year, and sales volume fell by 3%. The market is driven by pure price and turned to composite competition and returned to retail.
According to Li Shengfa, senior analyst of the High-tech Research Institute LED Research Institute (GGII), from the perspective of LED backlight market, the localization rate of domestic large and large-sized products is gradually increasing, while the small and medium-sized market has become saturated. In recent years, there has been a lack of growth. In addition, the supply chain of many foreign mobile phones is difficult for domestic companies to enter.
Then, in the case of such fierce competition in small and medium size, Ruifeng Optoelectronics has laid out the field, does it mean jumping into the Red Sea market?
In response to the above problems, Yin Jinghuang expressed his opinion. "No matter whether it is a large size or a small size backlight, there is no absolute difference between the Blue Ocean and the Red Sea. From the technical point of view, they are also different. The small size pays more attention to brightness and chromatic aberration. Large size pays more attention to color rendering index, heat dissipation, etc. Ruifeng Optoelectronics acquired Lingtao, which is intended to have more business and more product lines."
Li Cheng said that Ruifeng Optoelectronics is to gain more market share in the short term. This is an integration trend, which can balance both size and size, but the competition is very stressful.
“Previously, Ruifeng Optoelectronics has not done it in small and medium-sized sizes. The acquisition of Lingtao Optoelectronics is also a complementary resource.†Quan Jinsong said that through this acquisition, for Lingtao Optoelectronics, the company entered the system of listed companies. It will bring benefits to its future in terms of risk control and capital operation.
However, he also admitted that as the market demand for LED backlight products quality, performance, stability, luminous efficiency and other indicators is increasing, the risk of technology update is not to be underestimated.
In addition, in view of the fact that the performance of LED backlight companies in the first half of the year has almost changed collectively, whether they can get out of the quagmire next year, the above-mentioned insiders also expressed their views.
Li Cheng said, "The downward trend of prices next year may not be weaker than this year. In recent years, the backlights are in a period of fierce competition. The current phase-out situation is not complete enough, and it still takes one or two years."
Quan Jinsong also believes that the price of backlights should be even more fierce next year. The future competition is the competition between capital, efficiency and R&D among enterprises. It is also a challenge and an opportunity.
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