“Before selling a 200-square-meter display, I could get about 10 million yuan. Now I have to sell 500 square meters. The price has dropped too fast.†Recently, Shi Yaozhong, Chairman of Dehao Ruituo, interviewed the reporter of Yangcheng Evening News. The above feelings are issued.
The Yangcheng Evening News reporter learned that the continuous price war in the LED display industry is also rapidly reducing the small-scale LED display companies while lowering the industry's gross profit margin. The industry believes that the future of LED display industry will not exceed three or five companies.
Price drops by 20% per year
In recent years, LED concepts have become hot, and lighting and display have become the two most widely used LED applications. The data shows that the domestic LED display market has a capacity of 24.1 billion yuan. Although the scale is limited compared to LED lighting, many companies are getting together because of the low barriers to entry. The weak market demand and overcapacity in the industry have made the price war in the LED display industry very fierce.
“The price of LED displays has dropped by 20% to 30% almost every year.†Shi Yaozhong told reporters. The price has continued to drop sharply, which has led to extremely low profit margins in the LED display industry. Shi Yaozhong told reporters that the industry currently only has a gross profit margin of 20% and a net profit of 5%.
Listed companies in the LED display industry also showed a phenomenon of increasing revenues without increasing profits. As a typical example, the semi-annual report of the LED display company Zhouming Technology showed that net profit dropped sharply by 30% in the case of a 33% increase in revenue; Man Opto's revenue increased by 7%, but net profit fell by 26%.
Listed companies have no special advantages
In the process of rapid price decline, many small and medium-sized LED display companies have been closing down. From the 2011 Duo Duoli, to last year's vision optoelectronics and Haobo Optoelectronics, the Yangcheng Evening News reported several times that the leading players in the industry's influential downturns are LED display companies. "The LED industry has just passed the Spring and Autumn and Warring States era, and is still in the era of the Five Dynasties and Ten States." Shi Yaozhong believes that the current concentration of the LED industry is still not high.
At present, the LED industry is still in the process of intense shuffling. According to industry experts, companies that can survive in the big waves must have two factors, scale and technology. Shi Yaozhong believes that Dehao Ruituo has the advantages of Dehao Runda's full industrial chain integration. At the same time, it can use NVC's channels, and has the scale and financing ability. Therefore, it will not lose to any listed company in the competition. Zhang Xiaofei, director of the High-tech LED Industry Research Institute, told the Yangcheng Evening News reporter: "It is not surprising that listed companies in the display industry have ST or delisted in the next few years."
Recently, Dehao Ruituo launched the world's first 300-inch ultra-high-precision LED TV and outdoor high-precision LED display. It is reported that it has also cooperated with domestic media giant AirMedia to build a high-precision outdoor TV network in the national gas station. At present, hundreds of high-precision outdoor TVs have been completed.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
The Yangcheng Evening News reporter learned that the continuous price war in the LED display industry is also rapidly reducing the small-scale LED display companies while lowering the industry's gross profit margin. The industry believes that the future of LED display industry will not exceed three or five companies.
Price drops by 20% per year
In recent years, LED concepts have become hot, and lighting and display have become the two most widely used LED applications. The data shows that the domestic LED display market has a capacity of 24.1 billion yuan. Although the scale is limited compared to LED lighting, many companies are getting together because of the low barriers to entry. The weak market demand and overcapacity in the industry have made the price war in the LED display industry very fierce.
“The price of LED displays has dropped by 20% to 30% almost every year.†Shi Yaozhong told reporters. The price has continued to drop sharply, which has led to extremely low profit margins in the LED display industry. Shi Yaozhong told reporters that the industry currently only has a gross profit margin of 20% and a net profit of 5%.
Listed companies in the LED display industry also showed a phenomenon of increasing revenues without increasing profits. As a typical example, the semi-annual report of the LED display company Zhouming Technology showed that net profit dropped sharply by 30% in the case of a 33% increase in revenue; Man Opto's revenue increased by 7%, but net profit fell by 26%.
Listed companies have no special advantages
In the process of rapid price decline, many small and medium-sized LED display companies have been closing down. From the 2011 Duo Duoli, to last year's vision optoelectronics and Haobo Optoelectronics, the Yangcheng Evening News reported several times that the leading players in the industry's influential downturns are LED display companies. "The LED industry has just passed the Spring and Autumn and Warring States era, and is still in the era of the Five Dynasties and Ten States." Shi Yaozhong believes that the current concentration of the LED industry is still not high.
At present, the LED industry is still in the process of intense shuffling. According to industry experts, companies that can survive in the big waves must have two factors, scale and technology. Shi Yaozhong believes that Dehao Ruituo has the advantages of Dehao Runda's full industrial chain integration. At the same time, it can use NVC's channels, and has the scale and financing ability. Therefore, it will not lose to any listed company in the competition. Zhang Xiaofei, director of the High-tech LED Industry Research Institute, told the Yangcheng Evening News reporter: "It is not surprising that listed companies in the display industry have ST or delisted in the next few years."
Recently, Dehao Ruituo launched the world's first 300-inch ultra-high-precision LED TV and outdoor high-precision LED display. It is reported that it has also cooperated with domestic media giant AirMedia to build a high-precision outdoor TV network in the national gas station. At present, hundreds of high-precision outdoor TVs have been completed.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
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