LED screen market competition Konka video exit

May 23rd, Konka Video Systems Co., Ltd. (hereinafter referred to as Konka video) transferred to the company's largest shareholder OCT Group, the transfer price of 248 million yuan. Konka video main business for the production and sale of LED display, which means that Konka will exit the field.

Yesterday, Konka insiders said, LED screen market competition, the company's future will no longer do LED, and turned to the capital investment in the middle and lower reaches of the LED industry.

Back in 2007, Konka operating a value of 100 million yuan in Beijing Morgan building giant LED screen, known as Asia's first screen, but Konka video has a loss.

A veteran of the LED industry, said the domestic market competition in the field of large screen LED, especially large outdoor large screen is even more so, while the small spacing large screen market space is also great. LED enterprise is not only to see the background is not strong, but also to see whether the channel is mature, such as sales network, product quality, stable customers and orders, etc.. At present, domestic enterprises basically rely on impulse, gross margin at around 20%, some of the better abroad, gross margin was 30%~40%.

However, Konka relevant staff said, Konka layout of the LED industry did not give up, "the Future Ltd will invest the entire LED industry chain, including chip upstream, midstream and downstream packaging. LED big screen is only a small part of the downstream industry chain".

It is reported that, in addition to Konka video, Konka currently shares LED companies as well as Ruifeng photoelectric and Ying Rui photoelectric.