Abison: LED lighting industry losses but will continue to invest

In the latest issue of Shenzhen "practice China dream into the listed company activities, dozens of small and medium-sized investors came to Shenzhen is located in Longgang aibisen headquarters.

Statistics show that Abison 2013 operating income of 730 million yuan, annual sales orders continued to grow in, the cumulative sales order has exceeded $1 billion. Thus breaking the bottleneck of LED display industry over the past twenty years sales orders of $1 billion. In the first three quarters of this year, the company achieved operating income of $710 million, net profit of $110 million.

In the first three quarters of this year, the LED screen sales in the country to achieve revenue of $104 million, an increase of more than 50%. Why not focus on the development of the country, Ding Yanhui admitted: no confidence in the domestic business environment. Moreover, the potential of the international market is still very large, in the case of limited time and energy, focusing on bigger overseas market. Ding Yanhui said the company will continue to maintain the future of the domestic market accounted for about 20%.

It is understood that Abison is currently set up overseas branches and offices, continue to expand overseas markets. Ding Yanhui said that the future may consider mergers and acquisitions of some technology has the potential of the company, while considering the layout of the industry chain. The company's short-term development strategy is to focus on indoor business, as well as in Europe and the United States to provide high-end customers and engineering customers. As for the plan after three years, Ding Yanhui said: "still in wait-and-see. "

At present, the competition of the domestic LED lighting industry has entered the white hot stage, the market confusion, lack of standards, the homogeneity of products in harsh environments, Abison how to maintain its own advantages and footing, become a concern of investors.

Although the threshold to enter the industry is very low, but for the high requirements of this technology is very difficult to do the industry. Do not be able to display the screen. Since last year, a large number of companies closed down, especially in the survival of the medium-sized companies face challenges. Ding Yanhui said that the future of the LED screen will only go higher and higher. The next will be "the real thing" competition, enterprise ABC level will be divided.

At present, LED lighting is basically a state of loss of the entire industry, but we will continue to invest, focus on doing their own brand, firmly opposed to fight price war. Ding Yanhui said.

Abby's prospectus shows that in July 2010 the company mainly for the standardization of the product to customers launched a "zero Shoufu" sales policy, namely customer orders without payment, payment or payment before delivery payment most. Currently, Abison A1088 and A1688 two star products, as well as A2, A3pro and AI03 small pitch products to implement zero down payment policy.

The introduction of the policy, the industry in an uproar. There are a lot of people questioned, the customer does not give the deposit of the goods sold, how to control the risk? Abison believes that because the LED display is customized products, customers can not see the real worry, kind received is not up to the effect of the imagination, it is learned that customers such concerns, with their own strength, before the launch of zero Shoufu the challenges to traditional rules initiative. The results especially for overseas customers, beyond all expectations, agree to this practice aibisen.

However, zero down payment also brings huge accounts receivable and inventory risk. In this regard, said Ding Yanhui, the company's accounts receivable in 2013 about one hundred million yuan, profit is about $one hundred million, basically to achieve zero inventory. At the same time, all accounts receivable from China's export credit insurance guarantee. Before there have been cases of customer bankruptcy, the insurance company to compensate, so this innovative business model is safe. "

Whether it will cooperate with the electricity supplier to open up the Internet business. Ding Yanhui said that the company has set up the Ministry of information technology, is studying the use of the Internet to develop business, but the company will not emphasize the role of the internet.

Although the Internet is a good tool, but you can sell products on the Internet but can not produce products. Ding Yanhui said.

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