Dehao Runda, which started with small home appliances, began to transform into the LED industry in 2009. Dehao Runda is currently the second largest LED epitaxial chip manufacturer in China, with 92 MOCVD equipment, second only to Sanan Optoelectronics.
Unlike upstream chip companies such as Sanan Optoelectronics and Huacan Optoelectronics, which choose to continue to expand production, Dehao Runda has suspended the purchase of MOCVD equipment. The financial report shows that Dehao Runda's LED business revenue surged 42.84% in 2013, reaching 1.439 billion yuan. In order to open up the entire LED industry chain, the company is currently shifting its focus from increasing upstream chip production capacity to building downstream brands and channels.
With the massive increase in investment in domestic MOCVD equipment, the production capacity of LED epitaxial chips has increased significantly, resulting in serious overcapacity and continued decline in prices. The company has used raised funds and its own funds to purchase 92 MOCVD equipment, and the production capacity of these equipment has been able to meet the company's needs.
Obviously, Dehao Runda currently puts downstream brand and channel construction in a more important position. In order to build brands and channels, Dehao Runda has conducted in-depth cooperation with NVC Lighting. Data show that at the end of 2012, Dehao Runda acquired part of NVC Lighting's shares and became its largest shareholder. In April this year, Dehao Runda spent nearly 400 million yuan to increase its stake in NVC Lighting by nearly 7%. Outside analysts believe that Dehao Runda's acquisition of NVC is focused on the brand and channels of NVC Lighting.
After acquiring NVC Lighting, in addition to launching the "NVC Dehao" joint brand, Dehao Runda also leased AEG, Whirlpool and other brands to expand overseas business. The goal of aiming at the top three in the LED industry is still there.
ANNA