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Review the development history of China’s LED display manufacturer

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Looking back at the development history of Chinese LED display manufacturers, it has been 15 years after careful calculation. From the initial use of transportation, to now there are LED displays in all walks of life, which is indispensable to the display manufacturers behind them who have worked hard to develop and test.

Next, we will take stock of the ups and downs of Chinese LED display manufacturers from 2009 to 2017.

Table of Contents

Year in Review, 2009

  • ➤ In June, the Chinese government once again raised the export tax rebate rate for LED displays from 14% to 17%
  • ➤ Surface mount products enter the market strongly
  • ➤ Shenzhen took the lead in releasing the first special plan for LED industry development in China, proposing to build Shenzhen into a national and even global important LED industry R&D and production base. By 2015, the industry scale will reach more than 130 billion yuan.
  • ➤ Ledman Optoelectronics successfully listed
  • ➤ The huge amount of MOCVD subsidies started by local governments and the large-scale investment in the capital market have increased the number of LED chip companies from 43 in 2008 to 95 in 2011.
  • ➤ Among the domestic LED electronic screen enterprises, 27 have annual sales exceeding 100 million yuan

Summary:

Under favorable policies in 2009, the overall development speed of the LED electronic screen industry is still relatively fast, especially the domestic disadvantages in the upstream LED chip field, resulting in continuous government subsidies and rapid capital influx, greatly increasing the output of LED chips. As a frontier city of reform and opening up, Shenzhen is famous for its innovative spirit. It took the lead in supporting the development of the LED industry and further consolidated Shenzhen’s position as the largest production base of the LED industry.

Year in Review, 2010

  • ➤ The total output of LED electronic screens in China was 2.6 million square meters, a year-on-year increase of 48%. Among them, LED full-color screens are growing rapidly, almost equal to the output of monochrome and two-color displays.
  • ➤ The holding of the World Expo drives the growth of LED electronic screen applications

Summary:

In 2010, the total output value of China’s LED electronic screen market reached 18.5 billion yuan, a year-on-year increase of 54%, accounting for 83% of the world’s display market. Under the holding of a series of international events such as the World Expo and the Asian Games, the development trend of LED electronic screens is good. The data shows that the growth rate from 2007 to 2010 was about 40%, which can be described as the golden age of the LED electronic screen industry, but since then the market growth rate has slowed down, and problems such as overcapacity have become prominent. For example, the rapid development in 2008-2010 is no longer possible. Copying again, of course, these are all things for later.

Year in Review, 2011

  • ➤ Three LED screen companies, Liantronics, Unilumin, and Alto Electronics, went public
  • ➤Shenzhen JYLED company was formally established
  • ➤ The “Jun Duoli” incident sparked heated discussions in public opinion. Due to the broken capital chain and excessive debts, the company was facing a serious operating crisis.
  • ➤ Many local governments canceled subsidies for MOCVD equipment
  • ➤ The cooperation between local governments and display companies is unfavorable, and employees are exposed to wage arrears
  • ➤ In 2011, the output value of China’s LED electronic screen reached 21.9 billion yuan, an increase of 18% year-on-year, of which the total export value was 6.46 billion yuan; the shipment of LED electronic screens increased by 47.5% year-on-year, but the price of display screens fell by 20% year-on-year

Summary:

2011 can be said to be a memorable year for the LED display industry, and JYLED is also growing gradually in such an environment. After experiencing rapid development in the past few years, the LED electronic screen industry has gradually matured, and some companies with strong comprehensive strength have been successfully listed, which to a certain extent indicates that the industry concentration has increased.

However, in 2011, the industry also suffered from “Waterloo”, and the year-on-year growth rate of the market dropped sharply. The “Jun Duoli” incident has also become one of the “models” for the collapse of LED companies since then. Since then, problems such as triangular debt and capital rupture have surfaced. Become the focus of the industry.

Year in Review, 2012

  • ➤ The Ministry of Industry and Information Technology released the electronic industry standard SJ/T 11141-2012 “General Specifications for LED Displays”
  • ➤ The “Entertainment Restriction Order” was issued, and the rental screen market was the first to bear the brunt
  • ➤ Leyard listed
  • ➤ From January to August 2012, the export value of China’s LED display was 5.16 billion yuan, an increase of 30.62% compared with the export value of 3.95 billion yuan from January to August 2011, and the total annual market sales of the industry reached 25.3 billion yuan.
  • ➤ The price of LED electronic screens continued to decline, with a year-on-year decrease of 15%-20%
  • ➤ The procurement scale of LED display screens exceeded 400 million yuan, creating a record high in the procurement of LED display screens.

Summary:

In 2012, competition in the industry intensified. In order to eliminate small and medium-sized manufacturers, large manufacturers took the initiative to cut prices. But on the other hand, the promulgation of LED electronic display standards has promoted the standardization of display products, and with the gradual popularity of LED electronic screens at home and abroad, its sales are also rising. Under such circumstances, another company in the industry has succeeded listed.

Year in Review, 2013

  • ➤ Shenzhen Yiguang Technology Co., Ltd. was revealed to be in debt, and the boss was arrested for running away
  • ➤Shenzhen Yiguang employees filed an arbitration application with Shiyan
  • ➤ Various ministries and commissions of the Central Committee of the Communist Party of China jointly issued a document requesting to stop extravagant extravagance and promote thrift to hold evening parties
  • ➤ The number of mergers and acquisitions in the LED electronic screen industry reached 2.6 billion RMB

Summary:

In 2013, the overall scale of the domestic LED display application industry continued to increase, and the total annual market sales reached 27 billion yuan, an increase of 7% over 2012, and the growth rate dropped significantly compared with 2012.

The competition in the LED electronic screen industry has further intensified, and product prices have continued to decline. The gross profit rate of LED electronic display manufacturers based on channels has dropped to 10%-15%, and the gross profit rate of products in engineering channels is still above 20%. It also made it difficult for individual manufacturers to continue their operations. Since the beginning of this year, the capital strength of large LED electronic screen companies has begun to emerge, and the amount of mergers and acquisitions has increased rapidly year by year.

Year in Review, 2014

  • ➤ Small-pitch products break through P0.8
  • ➤ COB technology has aroused widespread concern in the market
  • ➤ Many places have issued management regulations on outdoor LED electronic screens, and the development of outdoor LED screens is limited
  • ➤ Absen listed
  • ➤ The overall M&A amount of the industry reached 6 billion yuan, and the number of M&A targets and the amount of M&A doubled year-on-year

Summary:

In 2014, the market size of the national LED display application industry reached 30 billion yuan, and the export volume was about 5.5 billion yuan. The listing of Absen led to the formation of a pattern led by six listed companies in the industry, and the trend of mergers and acquisitions in the industry continued to prevail.

In addition, as the capital gap between these enterprises and ordinary enterprises widens, the industry concentration gradually increases. In terms of products, the small-pitch market is beginning to emerge. Major companies, including supporting products, are stepping up research and production. The products continue to make new progress and drive the popularity of COB technology. On the other hand, several LED lighting manufacturers have broken their capital chains, and even “run away”, which has caused tension in the entire LED industry, and the triangular debt issue has been brought up again.

Year in Review, 2015

  • ➤ Sanmenxia outdoor LED electronic screen fire, Jolin Tsai concert LED rental screen stage collapsed
  • ➤ Foshan Towei owes 180 million
  • ➤ The number of mergers and acquisitions in the industry exceeded 10 billion yuan.
  • ➤ About 50 large-scale enterprises with annual sales exceeding 100 million yuan
  • ➤ LED listed companies are facing a “suspension tide”
  • ➤ The product “Black Onyx” won many awards such as the German IF Gold Award
  • ➤ In addition to Unilumin Technology, among the listed LED electronic screen companies, the net profit of the five companies in the first three quarters declined year-on-year compared with 2014

Summary:

In 2015, the prosperity of the industry was still relatively sluggish, and the intensified competition caused the prices of downstream products to fall again, and corporate profits were tight. The listed companies also failed to go through smoothly, the stock market “suspension wave” has spread widely, and some LED electronic screen listed companies were also forced to suspend trading. Despite this, the pace of mergers and acquisitions of listed companies has not slowed down, and capital assistance continues. In terms of products, frequent accidents of LED electronic screens have attracted widespread attention; the small-pitch market has begun to heat up, leaving a glimmer of hope in the industry.

Year in Review, 2016

  • ➤ Cultural policies have been introduced one after another, and the rental screen market is booming again
  • ➤ Epistar, Sanan, and other companies took the lead in raising prices, and raw material prices rose
  • ➤ LED transparent screen begins to exert force
  • ➤ The news that Apple will adopt Micro LED display technology is popular
  • ➤ Small-pitch market breaks out

Summary:

Driven by the small pitch, the industry boom began to pick up in 2016, coupled with the introduction of cultural policies, the LED rental screen market has recovered, and the development momentum of LED transparent screens should not be underestimated. The news that Apple may adopt Micro LED display technology has given the industry endless reverie, and this technology has been hotly debated for a while. At the end of the year, an unexpected price increase of raw materials made the already low gross profit rate of products even lower, making it more difficult for LED screen companies to operate.

Year in Review, 2017

Halfway through 2017, during this half-year period, the battle for channels has begun, and the “price war” has intensified, involving the fragile nerves of the LED electronic screen industry, while large companies rely on high-end products such as small pitches to expand overseas markets, and cross-border operations, continue to maintain impressive profit growth. In addition, the “One Belt, One Road” policy has driven the growth of overseas markets. In April, the export scale hit a new high in a single month. Small and medium-sized enterprises have turned to developing countries and regions for market development to divert the pressure of competition.

Summary:

At this time, perhaps we can’t help but miss the good years of rapid market growth and huge profits a few years ago, but no matter which industry develops, profits will eventually decline due to market saturation, and some disadvantaged companies will be eliminated due to increased industry concentration. At this time, LED screen companies need to show passion and enterprising spirit at the beginning of the business, manage carefully, strive for the top, and restore the spirit of the year. In the ten-year journey of the LED electronic screen industry, countless events have occurred. It is inevitable that there will be omissions in a short article. Please forgive me.

Overall, from 2009 to 2017, the LED electronic screen industry experienced rapid growth in the first three years, a mid-term price decline, a market growth rate has fallen, and the prosperity of subdivided fields since last year has driven the overall situation to improve.

But in fact, although driven by the mid-to-high-end market such as small pitch, the industry’s prosperity has rebounded, with the blessing of intelligent AI in the future, it is believed that LED displays will grow stronger in the future.

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