Interview Background: The G20-LED Lighting Summit is a high-end platform for LED lighting industry leaders led by Gaogong LED. The member companies cover the middle and upper reaches of the industrial chain and have certain segmentation areas and industry representation.
In this issue of G20 interview, Gaogong LED visited member companies------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Jingke Electronics was established in Nansha in August 2006. It always adheres to the integrity and innovation, and pays tribute to the spirit of artisans. Dr. Xiao Guowei is an expert of the “Thousand Talents Program†of the Central Organization Department. The company relies on independent development and gradually masters the LED industry with international leading level. The core technology.
Then, in the key period of the LED industry, how will Jingke Electronics face its future LED industry transformation and make its own strategic layout?
1. The packaging industry has been in the price competition cycle for the past few years. Continuous innovation of products has become the cornerstone of the company's continued growth. How does Jingke Electronics protect its products and market differentiation?
Jingke Electronics: Since its establishment, Jingke Electronics has adhered to product quality and technological innovation as the basis for enterprise development, market-oriented, and led its own perfect R&D center and research team to improve its innovation ability and continuously introduce new products and fine products. In this way, we will protect our own products and market differentiation advantages.
Secondly, in terms of customer positioning, Jingke has been positioned in the mid-to-high-end market. There is no price war in the low price, and it will not lower the product quality for price reduction. Jingke adheres to the integrity and innovation, and pays tribute to the spirit of craftsmen.
In addition, enterprises must have reasonable profits to survive, and research and development must be a large amount of investment in the early stage. The blind price war will only cause enterprises to enter vicious competition, and product innovation and services cannot be improved.
In addition, the package price increase has little effect on white light illumination. The package price increase is mainly for RGB low-power illumination, while Jingke Electronics mainly performs high-power illumination. For us, not cutting prices is "price increase." The price increase of this package is also a market development law and is not expected to last for too long.
2. In the field of white LED, the company has EMC, automotive lights, backlight, COB and AC COB platforms. In the long run, white LED is still the focus of market competition, and it is also the largest market in the application field. How does Jingke Electronics' future development of its own competitive barriers (differentiation) at the product and market levels?
Jingke Electronics: In the field of LED packaging, COB products can be described as popular, and major packaging manufacturers are eager to showcase the full range of COB light sources. Light quality has become the focus of attention. At present, brightness is no longer the most important indicator to measure the quality of a luminaire. The most important thing is the comfort of the light.
We have always advocated light quality, especially the COB series products are mainly used in high-end commercial fields such as art galleries, museums, clothing stores, etc., especially emphasizing the color rendering of light. At the same time, Jingke Electronics regards stability and long life as the top priority of product development, in order to establish its own competitive differentiation advantage.
In the field of white LEDs, demand is still strong, and LED white light applications are expected to enter the off-season in the fourth quarter, but orders from Korean and mainland customers are still influx, and demand for LED backlight applications and smart phone flash is also synchronized. Growth, driving the fourth quarter of operations is expected to be better than expected.
In the field of backlight LEDs, the demand for LED backlights has been slow in 2016. The peak season of TV backlights started in March and April, and this year began in June. Although it is late, there should be a peak season effect in the third quarter. We have screened backlit LED orders, locked in stable and differentiated products, and the product mix is ​​getting better and better. The current capacity utilization rate has climbed from 90% to full load.
In the future, we will continue to increase R&D investment in LED backlighting and lighting. Based on our innovative capabilities in packaging technology, we will improve existing products, develop new products, and maintain flip-chip, chip-scale packaging and integrated packaging. Leading position in smart lighting and backlight solutions.
How to provide high-performance, high-quality, low-price products to consumers is the healthy development of the industry.
3. For COB products, Jingke Electronics' technology and product features? In the future, on the COB, how much space does the technology have to improve?
Jingke Electronics: In June this year, Jingke Electronics launched a self-developed COB series product with intellectual property rights at the Guangzhou International Lighting Exhibition. The product is based on its mature flip-chip technology, the latest results of the corresponding optimization of the needs of different application groups.
This ultra-high-quality COB has a color rendering index of 95 or more, which is close to 100% to restore color authenticity. It can meet the color reduction requirements of different scenes and is suitable for high-end and professional lighting places. The product attracted a large number of visitors, reflecting the concern and demand of COB customers in the South China lighting industry.
As LED lighting gradually penetrates into the field of professional lighting, COB products will have more application space. The Jingke COB series is aimed at international mid- to high-end application customers. It is expected that this part of the revenue will increase by 2 to 3 times this year, and will exceed 10% of Jingke's total revenue in the future.
The crystal COB series offers the advantages of high light efficiency and high index. The flip-chip can achieve >150 lumens/watt (lm/W) performance. The design of high thermal conductivity metal substrate can be easily screwed to heat sink.
At the same time, COB will make technical improvements in improving light efficiency. It is expected that the 26W COB in the first quarter of 2017 will be 80, and the luminous efficiency of 155lm/w will reach mass production.
4. According to Jingke Electronics' 2016 semi-annual report, the first half of the year was positive, and the company will continue to increase its investment in LED backlighting and lighting. What adjustments will be made in the product and market?
Jingke Electronics: Jingke Electronics' 2016 semi-annual report shows that in the first half of the year, the company achieved operating income of 244.16 million yuan, an increase of 262% over the same period of last year, and realized operating profit of 13.49 million yuan, an increase of 221% over the same period of last year; net profit of 17.72 million Yuan, an increase of 305% over the same period last year.
Through continuous innovation, increase market share in the lighting industry.
In the field of TV backlights, the company launched the high-definition 3030, increased cooperation with the first-line brands, and introduced international customers to form a cooperative relationship; perfect the application plan of CSP.
In addition, after years of precipitation, Jinke has laid a good foundation in automotive lighting, is undergoing technical improvement, and will cooperate with some well-known brands.
In the future, Jingke will focus on product development and market development, expand its main business by capital, attract more resources, and seek more cooperation opportunities from the horizontal and vertical extension of the industry chain. . Through the cooperation mode of capital, the scale of development of Jinke Electronics will be rapidly expanded.
After the listing of the New Third Board, Jingke Electronics has successfully completed the first round of fixed growth and achieved the expected goals, which can meet the current funding needs for expansion and development. I believe that as long as the company has investment value, it will certainly attract the attention of investment institutions and investors.
The level of LED technology and products in China is very close to the international level, and even reaches the international leading level. It can be favored by the international market through the cost performance of the products.
5. The LED packaging industry is in a period of increasing market concentration. On the one hand, enterprises compete for market share and price wars are rampant; on the other hand, some small and medium-sized enterprises are gradually looking for new segments, hoping to avoid competition from big companies. How does Jingke Electronics view the changes in the packaging industry? What are the different characteristics of the packaging industry compared with a few years ago?
Jingke Electronics: Compared with last year, the most obvious trend is that the market gradually returns from “crazy†to “rationalâ€, and the degree of attention gradually returns from price to technology, quality and other products. This shows that the industry order is gradually becoming orderly. Healthy, is conducive to the progress of domestic packaging technology and the development of the industry.
In addition, although the market is becoming more rational, the downstream is still facing greater pressure. For example, the rise of emerging markets, the penetration rate in some areas is large enough, so everyone is in the fight.
At present, the domestic packaging market has reached a stable period, and many small and medium-sized enterprises have been eliminated, and the pattern of the larger Evergrande has gradually emerged.
Several large companies that have survived have stable customer sources and mature technologies. In the future, there is little possibility of significant price cuts.
Compared with last year, this year's customers are very rational, and the quality requirements are more and more, instead of blindly pursuing prices. Stable quality has a positive impact on business development and is more attractive to customers.
On the one hand, Jingke Electronics never fights price wars, does not occupy the market at low prices, and adheres to the concept of “taking high quality as its own responsibilityâ€.
On the other hand, the company has built a strong technical team, relying on a number of doctors and masters as the main technical operation team, relying on independent development, and gradually mastered the core technology of the LED industry with international leading level.
Since its inception, Jingke Electronics has been insisting on doing a good job in every product, doing everything in a down-to-earth manner, ensuring that the light source is done well, focusing on product quality, and resolutely not competing with customers, not with customers. It is a practice that has been adhered to for many years.
6. Despite the reshuffle of the packaging industry in the past few years, many small and medium-sized enterprises have withdrawn from the market or transformed. However, there are not many mergers and acquisitions in the packaging industry compared to other fields. Most companies are more willing to choose to seize market share by expanding production. Will the future packaging industry enter the stage of big fish eating small fish and fast fish eating slow fish? Will industry mergers and acquisitions become one of the strategic directions of enterprises?
Jingke Electronics: In the past two years, the concentration of LED industry has accelerated, especially in the field of chips. Major enterprises have carried out mergers and acquisitions integration or industrial chain extension to deal with, which is an inevitable trend of industrial development.
The upstream area of ​​LED is in a period of large integration. At present, LED upstream must be mass production, and it is also the industry with the highest concentration of technology, and the stability and quality of upstream products determine the stability of middle and downstream products.
Jingke is a company that specializes in packaging, and is also adapting to the upstream and downstream products in order to adapt to the current situation. However, regardless of upstream or downstream, each company must first find the location of the partner. The upstream can guarantee timely supply and high-quality chips, and the downstream is to use the products as a carrier to be promoted in the market and satisfy consumers.
7. Some high-end products such as car lights are becoming a new battleground for many packaging companies. Jingke Electronics has also made a full range of lighting products. With the rapid launch of the new round of new energy vehicles, what proportion of automotive products will account for the overall product layout?
Jingke Electronics: As mentioned above, after years of precipitation, Jingke has laid a good foundation in the automotive lighting aftermarket and maintenance market, and has completed the technology and will cooperate with some well-known brands in the future.
The proportion of the lights in the overall product layout of Jingke will not be much, but in the future, as the technology and market mature, its proportion will become larger and larger.
8. Through several years of efforts, Chinese packaging companies have taken a favorable position in the global competition. Regardless of Taiwanese companies, Japanese, Korean, and European and American companies, Chinese packaging companies have occupied a large market share in many market segments. Next, in some high-end areas, can Chinese packaging companies continue to “crack up�
Jingke Electronics: First of all, we must affirm that Chinese packaging companies can continue to "in the high-end areas of the future."
A few years ago, regarding the development of cross-border transformations involving some high-end fields, Jingke believes that the temptation to enter the high-end field and cross-border transformation does exist, but the risk involved in another field is also obvious, the management level of the enterprise, risk Resistance, the degree of grasp of the new market, etc. are very big tests, and will not be easily involved.
Nowadays, although the number of cases involved in the high-end field is increasing, the risk has not been reduced. It is risky to get involved and develop high-end areas, and the action needs to be cautious.
In the past two years, local enterprises have made great progress. For example, companies such as Mulinsen participated in international mergers and acquisitions and began to have a global vision.
The downstream links are also gradually facing a concentrated trend. However, the downstream application changes are relatively large, and the relative speed of transformation is also faster. Unlike the middle and upper reaches, due to limitations in technology and equipment, the transition is not so easy.
In addition, the advantages of vertical integration are obvious, from technology, channels, capital, etc., is the fastest way to achieve the fastest efficiency.
9. Objectively, the “capital market†aura of the LED industry is fading. There are not only the capital market itself chasing the concept and the short-term interests, but also the factors that the LED industry gradually enters the mature period from the rapid growth period. From the perspective of Jingke Electronics, what other highlights of the LED industry are worthy of attention in the future? Which ones will become the new profit growth point of the LED industry?
Jingke Electronics: This year, including smart lighting, plant lighting, UV LED and other sub-sectors are very concerned. The market segment is constantly evolving, the requirements are constantly changing, and the technology is also improving. For example, in the application of UV verification, the authenticity of the banknote verification is different from the others, so there are still many opportunities.
There are still many things that can be tapped in the market segment, and any one of the market segments will have the potential to become a new profit growth point for the LED industry.
10. From the perspective of Jingke Electronics, from the past China's domestic market, to the current global market, what changes and adjustments should Chinese LED companies make to adapt to new changes in the industry?
Jingke Electronics: Under the influence of factors such as the global macro economy and the weak growth of the semiconductor lighting industry, in general, resources are showing a concentrated trend, whether it is upstream or midstream.
With the concentration of resources, enterprises should consider improving their sustainable profitability and need to explore new profit growth points. Therefore, the strategy of enterprise integration, cross-border, implementation of dual main business and even more main business has become a way for enterprises to actively expand new profit growth points. one.
We are very optimistic about the future development potential of the New Third Board. "In fact, the establishment and development of the international capital market is very close to the New Third Board.
With the development of the New Third Board, relevant institutions will introduce more policies to enable the listed new three-board enterprises to truly exert their own advantages, attract investment, and create opportunities for healthy development.
In the next two or three years, intelligence will continue to develop, and different applications in the market will continue to emerge. But the promotion of the application requires a process that won't be a simple one.
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