Cross-Border LED Lighting Alliance Accelerates New Industry Distribution

On May 24th, 2011, listed companies in the LED industry added new troops, and Shenzhen Ruifeng Optoelectronics Co., Ltd. (hereinafter referred to as “Ruifeng Optoelectronics”) (the first issue) was approved. The company's second largest shareholder is Shenzhen Konka Group.

"LED lighting is a very promising market. This industry has a high gross margin and a huge market space. At the same time, we have a profound accumulation and accumulation in this area. We are confident that we can open up the LED industry chain in the middle and lower reaches of the LED industry as a whole. The layout has accumulated strength, "said Kangjia video related responsible person told reporters.

In 2008, Konka invested 886 million yuan in liquid crystal module plant settled in Kunshan City, Jiangsu Province. It is understood that this is the largest domestic investment in liquid crystal module production projects, can produce a maximum size of 47-inch LCD modules, annual production capacity of 7.2 million. At the end of 2009, Konka Group and Ruifeng Optoelectronics were strong, and Konka became the second largest shareholder of Ruifeng Optoelectronics holding 25.87% of the shares. Ruifeng Optoelectronics is focused on the LED packaging industry and is one of the few domestic companies that can provide TV backlight LED in batches. It is the largest LED packaging company in the field of medium and large size backlights in China. In 2010, Konka invested another 22.5 million US dollars to participate in the upper reaches of the LED photoelectric Rui Optoelectronics Technology (Shanghai) Co., Ltd., holding a 36% stake in the photoelectric Rui photoelectric.

According to analysis of relevant domestic experts, the participation of shares in Ruifeng Optoelectronics has given Konka a huge competitive advantage in at least three aspects. First, it can ensure the stable supply of LED devices, and it can also ensure that Konka can keep up with Samsung in LED TV technology for the first time. The forefront technology of international big manufacturers; Second, Konka's new idea on LED TVs can be realized through Ruifeng; thirdly, through joint development, it is also possible to achieve technological leadership on LED TVs. At the same time, the company's successful IPO can also enable Konka to share the high investment income from the high growth of the upstream industry. This is another huge asset for Konka.

Benefiting from industrial policies, the LED industry has entered an outbreak of growth. LED is an important part of the energy conservation and environmental protection industry in the “12th Five-Year Plan”. The four major factors (policy support, improvement of light efficiency, price reduction, and rising electricity tariff) will promote the rapid development of the industry. It is estimated that the total output value of domestic LED industry in 2015 will reach 500 billion yuan, and the average compound growth rate will be 33% in five years.

However, China's semiconductor lighting energy-saving industry is also facing many problems that need to be resolved. For example, the overall level of the industry is low, patents and core technologies are lacking, and low-level blind investment is serious. The Konka has been able to quickly switch to the LED market, in a short period of time to launch the 10 series of more than 50 new products, and it has always insisted on the concept of independent research and development are inseparable.

“What is the future of the television production industry? Apart from revitalizing the LED upstream and downstream, strengthening the LED backlight source and the 3D technology that is constantly advancing on this basis, we need a revolution in the real TV industry. The real revolution comes from the smart TV industry. The power of subversive, only to do a good job of intelligent services, advanced LED technology can fully display their expertise.” Cao Shiping, general manager of Konka Group Multimedia Marketing Division, told reporters.

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