Beijing Olympic Games opening ceremony of the picture: LED lights up industry

Tug Beijing Olympic Games opening ceremony of the "magic" of the Chinese picture, to the people on a universal LED vivid lesson: paper with two paintings, formed a three-dimensional large screen. The ground on the big screen, some paved the 45,000 LED, 30,000 people have withstood repeated Tacai.

In this year's Olympics, the local application of the LED, in addition to the floor of the nest site LED screen, there are performers on the decorative LED lights, air up the Olympic rings with the LED light source, the nest site and broadcast on the stands To provide the audience with the LED screen.

However, behind the scenery, there are also problems of the industry. 2007, the annual sales Guoyi LED production enterprises, not more than 20. More than 300 million yuan of the company, is already be called "leading" enterprises, but many companies there is a phenomenon of bad debts and arrears. Production processes in the upper reaches of the technology also firmly in the hands of large foreign companies, reducing the cost posed a challenge. However, LED with the development of the industry, this phenomenon of weak demand in gradually changed, but how the emergence of surplus 500 million, 1 billion of large companies, we have to concern.

Ding Yanhui watching TV in the opening ceremony of the nest site of the LED screen to attract his attention. Ding-Abby is the Shenzhen Municipal Industry Co., Ltd. ( "Abby-sum")'s chairman, although in the battle for Olympic venues, the company did not win, but the LED's "show field", the competition Who were all pegged to the opponent's works.

The Tug "magical" picture, which raises the Dingyan Hui somebody: LED screen only ground That big screen long, the middle part of the stage, on both sides of the Huazhou technical staff through the beam different in different states under the principle of luminescence, with LED HEC's changes, made to the effect of Huazhou Vol.

"These domestic enterprises are met, but the performances sound and image can complete right to meet, I think the manufacturers is a test." For this piece of the world's largest full-color LED display ground of the production process, including Ding Yanhui, the principle of its counterparts are a lot of research.

However, in technology, these enterprises are more concerned about, or how to occupy more areas of commercial markets. DIGITIMES According to the forecast, the output value of large-scale LED display from 2008 to 2010 were 1.18 billion U.S. dollars, 1.64 billion U.S. dollars, 2.32 billion U.S. dollars, an annual growth rate was 34.1 percent, 39 percent, 41.5 percent, is all LED applications (Including cell phone backlight, automobile lights, lighting, electronic equipment, etc.), the annual growth rate of the most significant products.

Compared to market capacity, domestic production of LED display, but most of the sales hovering in the "billion" level. However, in competition not known at the same time, risk investment institutions also see an opportunity. It is understood that since 2001 started the Abby-sum, the recent introduction of Warburg Pincus, as did preparations for listing.

"Walk out" and open up the market

In early 2001, Dingyan Hui-sen founded the Abby. And who, like many enterprises, business has not done-not fire. At that time, the environment is that the majority of domestic enterprises engaged in the lower reaches of the LED packages and applications for chips, key equipment and technologies imported from abroad needed most. "Because the threshold is not high technology, so few people, to find a 10-square-metre small place, can do LED." And those smaller companies, Ding Yanhui started when the three will Cou 4 million, company So open up.

LED display general common use of sports facilities is the display, advertising billboards, highway, such as licensing. And Abby-customers are almost a "catch what to do", first took the Shenzhen Huaqiang North Road on a display business, followed by Power Supply Bureau of the list, fragmented Next, when only 100 Million in sales.

This state continued for five years. In 2005, Abby-it 10 million of revenue, Ding Yanhui hope that some began to change.

At this point, Dingyan Hui received a phone call from a trading company in Guangzhou. Saudi Arabia to help customers said the company's LED display for the factory. At that time, the other in southern China have run numerous manufacturers, but later or the business to Abby-sum. "Because I think that compared to the other side is. The industry is not standardized, not standardized."

Ding Yanhui and staff often said that the industry "three-no" too many enterprises: the development of non-strategic, non-brand companies, non-profit. Abby and not by virtue of relations-scored list, Dingyan Hui attributed to his doing it.

However, it is this single business, Abby-the subsequent development of the opportunity to find a breakthrough. Then in October, Ding Yanhui and a Saudi engineers to install products. Before departure, he Alibaba site, from the previous Saudi Inquiry information is recorded.

"I am a person in Saudi Arabia bubble for a month. Visited close to 40, my English was bad, the road not know. I call on customers to the taxi, walk 6:00 am, 21:00 to Saudi Arabia Capital of Riyadh, from Riyadh to Mecca. "Dingyan Hui said," because Muslims to Mecca can, but I still had to go to that place, find a customer. "

Come back from Saudi Arabia after the visit yielded initial results, Abby-signed more than 500 million yuan of business alone. And 2006, Abby-sum sales increased eight times over the previous year. "From this time I know of the international market potential."

After returning home Ding Yanhui began training on international sales force, the focus of development gradually moved from domestic to foreign.

However, behind this decision, and transmission of the immature development of this industry. It is understood that because of the "unspoken rules" too much so that some enterprises not fair competition. An industry that large-scale venues, highways, public areas of advertisements and bid a certain closure, "If any relationship, it is difficult to shortlisted." Moreover, "because as long as from upstream to the purchase of raw materials, through the assembly can be produced on the LED display. And a large screen is Ersanbaiwan the amount, the size of companies is very fierce competition."

Therefore, expanding the international market and become the company's choice of a breakthrough.

Top migration, lower costs

In many people are concerned, this is a marketing-driven industry. Won orders, production, in the mid-range price competition in the LED display, individual companies to develop the model is homogenization. Therefore, many companies are on the market, rather than the technical inputs. Because the equipment was purchased in the level of 10 million yuan.

According to Chinese optical photonics industry associations LED display Branch statistics, the 2007 annual sales of Guoyi only 17 companies.

For the early-Abby, in the capital accumulation, on the introduction of talented people not mature enough, and most businesses also like the one Ziliu De Shouzhuo. Until the opening of international markets, enterprises have continuously expanded, Ding Yanhui realized, to the industry on migration, and other enterprises can be differentiated.

With the professional terminology, LED production process, including crystal growth and epitaxial growth, the chip manufacturing and packaging. The first three are part of the domestic professional companies, such as three-on, Tsinghua Tongfang and Shilan Wei, but the company does not enter into the final product assembly and sales of display areas.

And Abby-sum option is part of involvement in the package. In simple terms, that is, Abby-bought chips from upstream factories, and then through the professional equipment to do the packaging. It is understood that the entire investment in 2000 million. In addition, Ding Yanhui also hired by Li Xiaojie from the industry responsible for the production processes. Ding Yanhui with the argument is that "no one, no funds I will not do." Perhaps feel that the time is ripe to 2008, the company began to intercept the upper reaches.

10 million through cost-input, "Packaging, the company has done great support. Such as lower costs by 30 percent." It is learnt that the LED display to the cost of 70 percent from the LED, "I am a package of the lamp Are not foreign selling. I have this equipment will allow me just to the screen in a more stable, but also greatly reduce the cost. "

Go to high-end, from the prices of the Red Sea

"LED display companies do have a few low ebb. After 1997 is a low ebb. Until after the recovery in 2002, in 2004 after entering period of rapid development." See the industry as much as the number of company closures, Ding Yanhui time in making decisions, often based pursuit of stability, not plans soon.

The company's export strategy, Ding Yanhui soon adjust the direction. "Now we have basically abandoned the Middle East market. I think we should enter the high-end product market, rather than have been in the low-end market. In Saudi Arabia, I was the first Chinese products sold to the people there, but I feel faint, Kurume the Middle East is not our place because the other side, they do not know what is good or bad, Yimei low-cost requirements. "

Therefore, Abby-The major products exported to the U.S., Japan, Britain, Russia and other places, "We also do OEM, but as far as possible we pushed the brand." Most of the domestic product is the OEM production of the situation, Dingyan Hui said. " If the customer is willing to use our brand we have lower prices, we try pushing their own brands. "

Asked the industry average profit margins, Ding Yanhui even said that "the average profit margin may be negative." Because of "domestic companies have a very good, but there are 80 million of bad debts. If the operator into profits, it is estimated the negative." By contrast, "we do not owe money, nor did the bank's loan-to-money." From the development from 2001, Abby-are rolling on its own funds, until recently obtained access to venture capital.

"This year, we plan to achieve 300 million yuan in sales." Ding Yanhui appears in the last year, the industry also is the first of such a scale. Whether it will expand to other business areas, Ding said in an area where a first product of the Abby is doing fine-sum characteristics. "I know that many manufacturers began to enter LED lighting, but I do not think that is too mature, we pay close attention, because things are still the core of the control of the United States in Japan."