LED industry gets warmer and diversified develops into a trend

In 2015, the LED industry went through unusually hardships. LED enterprises ran, collapsed, acquired and reorganized, and the whole industry was constantly adjusting and shuffling. What is the future of LED industry in 2016? The industry gradually warmed up. In 2015, large-scale mergers and acquisitions and bankruptcies swept across the LED industry. More than 4000 LED enterprises collapsed in the fierce market competition. For a while, the "cold winter" theory shrouded the entire LED industry in 2015. Zhang Xiaofei said that last year, the entire LED industry homogenization was serious, price war was intense, and industry polarization intensified, resulting in LED industry mergers and acquisitions and severe reshuffle. "LED enterprises merge mergers and acquisitions frequently, and they are mainly listed companies. The scale of funds used for mergers and acquisitions also varies from the minimum tens of millions of dollars, hundreds of millions of dollars to tens of billions of yuan." He Zaihua, senior researcher of CIC consultant, told our reporter. According to statistics, as of November 2015, the amount of mergers and acquisitions in China's LED industry reached 40 billion 800 million yuan, and 53 cases of mergers and acquisitions, compared with the total sum of 6 billion yuan in 2014, an increase of 580% over the same period last year. Among them, there are 39 billion M & A cases, accounting for 73.6%. In addition, the number of LED enterprises decreased by more than 4000 in 2015, and the number of enterprises in 2014 was as high as 2. However, the industry believes that after the baptism of 2015, the dominant enterprises in the LED industry will usher in spring in 2016. Fangzheng securities latest research report pointed out that the LED industry has a long industrial chain, including upstream epitaxial growth, mid stream chip manufacturing, downstream chip packaging and application areas. It is estimated that from 2015 to 2017, the annual compound growth rate of LED market will be maintained at over 30%, and the scale of China's LED market will reach 748 billion 500 million yuan by 2017. The market potential is huge. At present, there are still a large number of small and medium enterprises in the LED industry, the industry concentration is not enough, the industry resources are scattered, the surplus is eliminated, and backward production capacity is needed, so the transformation and upgrading of the industry is imperative. It is worth noting that under the situation of further adjustment of the LED industry, the advantageous resources will be further concentrated on the industry leaders, and the industry will gradually show the situation of "big investors". He Zaihua believes that the frequent M & A activities in the industry will promote domestic enterprises to go overseas, while constantly learning advanced foreign technologies, and improving the technological content of products. However, the fierce competition in the domestic LED industry, coupled with the future LED market demand tends to be saturated, is difficult to remove the surplus capacity in the short term, so LED enterprises need We should reposition, shift the direction of development, look for new growth points, and accept severe challenges. Small spacing into the outbreak period "with the continuous development and maturity of small spacing, small spacing LED products will enter a broader indoor application market, enterprises will have a wider range of development space, at the same time, with the small spacing LED capacity growth, its products will be further upgraded, product prices will also go down, more It is easy to be accepted by consumers. He Zaihua told our reporter. At present, the display market is already very mature, and the competition is more intense. In the case of traditional display business growth decline, the continuous growth of small spacing LED capacity has become the biggest bright spot. It is understood that the outbreak of LED small spacing products, such as Riad, Chow Ming technology, alto electronics and joint construction optoelectronics A shares listed companies increased significantly. Lyad 2015 annual report shows that the company LED small spacing performance is beautiful, LED small spacing to achieve rapid growth (three years of compound growth of more than 70%), LED small spacing global market share is above 50%. The latest research report of Zhejiang Merchants Securities believes that since its formal launch of LED small spacing product in 2012, Riad has also doubled its performance along with the explosive growth of the industry, achieving 1 billion 160 million orders in 2015, an increase of 73% over the same period last year. Based on the advantages of LED small spacing for DLP technology, the high-end splicing market will gradually be occupied by small spacing. At the same time, LED small spacing will be the fastest growing and the most finest molecular industry in the downstream application industry of LED. According to the industry, from the perspective of industry trends, with the decline of raw materials such as lamp beads and technological progress, the permeability of small spacing products will gradually increase in the commercial market. Riad said on the investor interaction platform in March 23rd that this year's small space is entering the outbreak period. However, Li Jun, chairman and general manager of Riad group, said that due to the high technical threshold of LED small spacing TV, after reaching a certain scale, the stability and quality of products of different companies will show a big gap. Attempts to diversify development are affected by overcapacity. The traditional LED industry is growing slowly. In the face of the new situation of the industry, some enterprises are also looking at other fields and trying to diversify their development while consolidating their main businesses. For example, Riad layout of the cultural industry, Lehman shares (300162, stock bar) Nuggets sports industry, Mao Shuo power (002660, stock bar) investment 480 million photovoltaic grid connected power generation projects, Shunchang ocean (002245, stock bar) to invest in integrated circuit chip projects. Taking Riad as an example, after the acquisition of Li Feng culture and Jin Lixiang, a comprehensive layout of cultural tourism performing arts field began. At the same time, Riad strengthened the research and development of VR technology in the commercial field, and invested in share production companies, integrating black crystal technology, tiger image, Holland Dimenco and other cooperative resources, focusing on the layout of cultural entertainment paradise, cultural technology experience Museum and performing arts field, aiming directly at the leader of VR business field. "Riad is no longer the manufacturer of traditional audio-visual products." In a recent Riad group strategic conference, Li Jun stressed that the future business strategy of Riad will implement "culture technology + finance" to make it a cultural and technological financial operator, an audiovisual product provider, an audio-visual solution provider, an audiovisual cultural experience operator, an audiovisual cultural industry chain investor. Under the guidance of the new strategy, ADAD will become a global audio-visual cultural transnational group. How can we achieve this strategic upgrading? Li Jun revealed that first of all, Riad will upgrade technology products from "hard" to "soft" by increasing the proportion of software and services, and secondly, through the overall solution of audio-visual application, upgrading Riad from traditional small integration to large integration; thirdly, through operation, listening to cultural experience projects and investing audio-visual culture. The upgrading of content industry from "technology + culture" to "cultural technology +" has finally been upgraded to "culture technology + finance". Finally, the Riad group has been upgraded to "100 billion Riad" through capital operation. He Zaihua believes that the development strategy of "cultural technology + finance" has been developed by Riad, and an audio-visual cultural transnational group has been built through asset acquisitions. "Riad will speed up the expansion of overseas markets, promote the continuous improvement of domestic production technology, and actively layout VR, realize the application of LED small spacing display technology and VR technology integration, promote the establishment of VR industry chain, and promote the rapid development of enterprise performance."