Crystal electric Li Bingjie: LED technology to upgrade the scale of industrial growth

Chairman Li Bingjie believes that the two sides in the LED industry has moved from cooperation to both cooperation and competition, although the threat of China is strong, but if the other side to do, we will escape, then there is no strategy in Taiwan. Taiwan depends on their opportunities in where? The government can think about whether or not the Taiwan LED industry. If so, it is necessary to establish a favorable environment for industrial development.

The following is a summary of the talk of Li Bingjie and Taiwan mergers and Private Equity Association chairman Huang Rican:

Q: we say that the Taiwan industry is very boring, the industry should not upgrade Taiwan? How to upgrade?

Answer: transformation and upgrading of enterprises like the pursuit of lower costs, is never stopped. Technology continues to progress, from low-end to high-end, which is the transformation.

There is also a very dramatic transformation, from the lower reaches of the upper reaches of the jump to another industry, or jump from OEM to brand. I think each industry, at different times have different choices, but sometimes we talk about the brand, will make Taiwan lose some basic competitiveness? Europe, the United States has a few brands, and how many brands can Taiwan?

I think the government should consider the industrial structure of Taiwan, the next ten years, Taiwan has the advantage of the industry, to develop its open platform and industrial environment.

Q: crystal electricity in recent years, the acquisition, have you reached the original purpose?

Answer: crystal power over the years there have been successful mergers and acquisitions, there are many places worth learning to improve.

Crystal electricity 2005 merger of the United Nations is focused on technology, because the United Nations has some patents can make up for the lack of crystal. This merger is a heaven-made match, acquisition speed, effectiveness will soon show.

The second merger was in 2007 with the United States and the union of arsenic photoelectric and even Yong merger, we focus on the market of arsenic in china. At that time, the price of electricity in China accounted for only 10% of revenue, as well as China's revenue accounted for its revenue of $70%. Today, the annual sales of electricity in China has five, six billion yuan, higher than when the merger was about $2 billion, indicating that there is growth in recent years.

Crystal electric in 2010 to acquire wide gallium optoelectronics, then the crystal in the middle and high market has a certain position, we want to develop the middle and low order market through the wide gallium.

But because the ownership structure is wrong, EPISTAR approximately 50% of total holdings, many important strategy problems can only be discussed in the executive director, and the working substance are not in interference. Crystal power in 2012 decided to acquire 100% wide gallium, will be incorporated into a wide spectrum of crystal electricity subsidiary and the city. But the low order China market has been the local LED plant The early bird catches.

But after becoming a 100% subsidiary of wide gallium, has been operating on the track, the first half of this year has begun to profit. This also explains why the level of foreign mergers and acquisitions to buy most of the 100% (Buyout) or absolute dominance, because there is no conflict of interests of small shareholders, operational decisions will be efficient.

Q: Recently crystal electric merger canyuan, how do you assess your performance?

Answer: crystal electric canyuan available with three benefits, first is to quickly obtain the talent and productivity is second, R & D and engineering personnel through technical exchanges and experience sharing, shorten the product development time, and improve the yield and reduce the cost. The third is canyuan under the city and become the 100% crystal Electric subsidiary, established the strategy of supply relationship, and save a lot of cost management, expected next year canyuan gross margins rose to more than 10%, operating expense ratio from 15% to 20%, down to single digit percentage below.

Overall, the merger can fully integrate resources, expand the scale of operations, reduce management costs in order to improve operational efficiency, enhance the competitiveness of the global market, to create greater benefits for shareholders.

Q: the two sides of the LED industry is competitive? Or complementary? On the other side of the upper, middle and downstream for integration, Taiwan's LED industry go from here? Where is the niche?

Answer: Taiwan industry often said with a wry smile as long as the mainland to do, and as a key industry, Taiwan can only compensate. But if we do it on the other side, we'll run away, and Taiwan will have no strategy. I think I have to look at the opportunity to own Taiwan? To think about what Taiwan is going to be like, is there a place for us in global competition?

Today, because the crystal has exit barriers, so I will choose to continue to play. But the government does not have to think like this, the government can think about the Taiwan LED industry will win.

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