Sacrifice profits to grab the market Ruifeng lighting LED layout delicate

[LED] Chinese network once in large size backlight device - King REFOND is experiencing a critical moment, facing the biggest LED market, lighting industry in the future, the pursuit of market share at the expense of profits.

Profits are indeed sacrificed, Ruifeng photoelectric 2014 annual results notice shows that in 2014 attributable to shareholders of listed companies net profit of 20 million yuan to 30 million yuan, down 47%-65%. And then look back, Ruifeng 2014 three quarter net profit of $40 million 182 thousand and 800, down 11.52%. Accordingly projections, in the fourth quarter of 2014, is a loss of photoelectric ruifeng.

Perhaps, this figure, Gong Weibin, chairman of the board has long been expected to get, he bluntly, do not attach much importance to short-term profits".

Sacrifice profits to pursue market share"

The main reason for the decline in net profit is still in the lighting LED, intense competition in the industry, the price of a larger decline in product prices".

Ruifeng photoelectric 2014 quarterly report shows that in the field of lighting LED sales revenue of $405 million, an increase of 69.71%, far exceeding the trump card products in the large-size backlight LED sales revenue of $256 million. In order to understand the situation of Ruifeng photoelectric margin, or from the 2014 semi annual report. From the table below, in the first half of 2014, 263 million of the revenue of Ruifeng lighting LED is the largest revenue in all products. Is this the biggest cake, but at least the contribution margin, then lighting LED gross margin of only 13.37%, for listed companies, so that the gross profit margin will be able to earn only the manufacturer knows the.

Source: Ruifeng photoelectric 2014 semi annual report

Lighting LED Maori a bit awkward, this move should go. Ruifeng photoelectric lighting LED is doing a good job, the one or two years of rapid growth in sales, profit growth is relatively slow, which is related to the company's strategic layout. "Outspoken REFOND chairman Gong Weibin authorized ceremony and product launches in the Toyoda Gosei white patent after the media interview," lighting market just up, if now you want to rely on it to make a lot of money is wrong, we are now basically is to cultivate the market, is the pursuit of market share at the expense of profits. "

Perhaps, and Gong Weibin thought there are many packaging companies. Everyone knows that the future depends on the lighting market, so no one will give up this cake. LEDinside senior analyst Wang Fei said that in 2014 China's LED packaging market size grew by 19%, less than most people's expectations. From the various application areas, the main driving force for the growth of lighting LED packaging market, but also almost the only driving force. Although many large packaging factory in snatch lighting LED piece of cake, but can obtain larger profits really not many enterprises.

At present, the way to chase the market share of the LED market, Gong Weibin said, is a big customer strategy". "Now the international first-class lighting customers before five, the top ten domestic customers are Ruifeng large customers, performance and cost requirements are very high, so the price, now other companies want to come in this phase of profit has been very difficult. Implication, bigger customer threshold is high, but not necessarily high profits. In any case, the strategy is to stabilize the company's customer base.

At the same time, REFOND and authorized by TOYOTA Japan, TOYOTA photoelectric synthesis synthesis Trading (Shanghai) Co. Ltd. in Shenzhen signed the white patent licensing agreement, REFOND obtained TOYOTA synthesis in Austria, Japan and the United States, Europe, Russia, China (including Taiwan), South Korea, India, white patent licensing in Malaysia.

Ruifeng photoelectric said that the cooperation of the company to enter Japan, Europe and the United States, South Korea, Taiwan and other markets will be of great help to promote the company's big customer strategy and internationalization process. And help to enhance the added value of the product and the company's core competitiveness.

LEDinside senior analyst Wang Fei analysts said, one of the world's top five LED patents to get rid of the synthesis of the patent rules of Chinese manufacturers do not break the rules, and China's packaging plant signed a white patent licensing contract with TOYOTA. Compared with the Chinese manufacturers do not increase the income of the patent LED market, compared to the patent market because the competition is less, Maori much better. The first "grab Ruifeng patent" of TOYOTA Chinese manufacturers sold high-speed rail tickets, is expected to get rid of the non patented LED market is like a spring like crowded, into a relatively graceful posture, broad space for high-speed trains, as soon as possible to get rid China packaging factory income does not increase profits spell.

"Small size backlight source to Ling Tao to do"

Large size backlight field has been the strengths of Ruifeng photoelectric. Although the industry believes that this piece of demand has been tight saturation, but Gong Weibin is still optimistic about the market expectations. The large size backlight will increase demand for LED, because now the TV size bigger, we mainly in several brands, North several brands we have no special account, in 2015 these will have a bigger breakthrough. "

It can be said that the "specialize in", although the ease in large-size backlight field, but in the case of small and medium size backlight field, REFOND is obviously not Jufei opponent. As a result, Ruifeng photoelectric to find Ling Tao photoelectric this helper. February 2014, Ruifeng photoelectric and Ling Tao light