2017 High-tech LED Industry Summit Forum - Standing at the beginning of the new industry cycle

Organizer: Gaogong LED, High Industry Research Institute

Time: June 10, 2017 (Guangzhou International Lighting Exhibition)

Location: Guangzhou, Pazhou, Shangri-La Hotel

Summit background:

2017 is the starting point for the LED industry to enter a new cycle.

First, the market concentration has risen rapidly

From the upstream point of view, the top five chip manufacturers have occupied about 75% of the market. The scale advantage of the epitaxial chip enterprises has further appeared, and it has also entered the multi-oligarch monopoly situation.

From the midstream perspective, domestic packaging companies have successfully dominated the domestic market. The upstream chips, packaging materials and equipment are highly localized, but there are still core patent barriers in overseas markets. Finding and cutting into more application market segments has become the foothold for the company's next round of growth.

From the downstream point of view, the LED business of some large lighting companies has accounted for more than 80%. The LED lighting industry has already bid farewell to the replacement stage of traditional lighting in the past and entered a new growth cycle.

Second, new markets bring new opportunities

By the end of 2016, the global LED penetration rate of lighting is only about 30%, and there is still a large market space. The transformation of LED lighting companies from traditional light source products to lighting products and intelligent products will be the general trend.

From the application point of view, outdoor functional lighting and landscape lighting will enjoy more policy dividends as China's urbanization and smart city construction accelerate in the next few years.

The trend of LED manufacturing is shifting to traditional manufacturing. Therefore, LED enterprises will face new challenges such as manufacturing efficiency, cost control, and automation. For equipment companies, they have put forward more new requirements and brought more new opportunities.

The market segment represented by ultraviolet, automotive, and plant lighting is becoming the focus of LED enterprises; especially the automotive LED lighting market continues to benefit from the demand for smart cars and new energy vehicles, and the lights are moving toward energy saving and intelligence. Development and efficiency.

Third, changes in business strategy

The LED industry is still in a relatively optimistic rising cycle. Due to the lack of sustained market competitiveness, small enterprises have been shrinking and withdrawing in the past year, thus giving more market space for medium and large enterprises.

At the same time, many LED companies represented by Sanxiong Aurora and Debon Lighting began to realize IPOs through policies and industry dividends at the end of last year, and also provided a strong boost for the new round of industry M&A.

In the next three years, LED companies will adhere to the business philosophy of profit-centered management. In addition to the main income, profit, ROE, per capita revenue contribution, per capita profit rate and other indicators become a key factor in judging whether the company is healthy and sustainable growth.

This has led to a huge potential demand for smart manufacturing, lean manufacturing, supply chain finance, and industrial mergers and acquisitions.

Summit agenda

Please pay attention to the official website WeChat information update of Gaogong LED.