In 2014, the global economic recovery was slow and the economic environment became increasingly complex. my country's economic downward pressure continued to increase. Affected by policies, the LED industry has entered a golden development period and market competition has become increasingly fierce. Faced with the continuous changes in the business environment, are LED companies holding on to their positions? Or to open up new territories again?
Most LED companies made obvious breakthroughs in 2014. Among them, Ledman Optoelectronics not only focused on the LED sector, but also expanded its layout in the sports industry, exploring the field of football business operations. While conducting external mergers and acquisitions, it also strengthened endogenous growth momentum, forming a development pattern that focuses on LED and extends to the sports media field.
In 2014, Ledman Optoelectronics achieved operating income of 405.0537 million yuan, an increase of 15.58% over the same period last year; the net profit attributable to ordinary shareholders of the listed company was 25.7713 million yuan, an increase over the same period last year. 47.85%; total assets were 91,505.09 yuan, an increase of 4.93% from the end of the previous year; owners' equity attributable to common shareholders of the listed company was 74,773.67 yuan, an increase of 1.68% from the end of the previous year.
Lehman Optoelectronics stated that its main business has not undergone major changes, and it still focuses on mid-to-high-end LED packaging, LED display screens, LED lighting and LED media businesses and LED energy-saving services. At the same time, it accelerated business development in the football field during the year, forming a development pattern that extends to the sports media field based on the stable growth of its main LED business.
Mainly LED business
According to industry data, the overall scale of my country's semiconductor lighting industry reached RMB 350.7 billion in 2014, an increase of 36% from RMB 257.6 billion in 2013, and continues to maintain a rapid growth trend. Among them, the scale of upstream epitaxial chips is approximately 13.8 billion yuan, the scale of midstream packaging is approximately 51.7 billion yuan, and the scale of downstream applications has increased to 285.2 billion yuan.
In terms of its main LED business, Ledman Optoelectronics has always insisted on building an integrated industrial layout from packaging to application, and adhered to the strategy of paying equal attention to endogenous and epitaxial products. We continue to be committed to promoting development in the fields of LED packaging, LED displays, LED lighting and LED energy conservation. We adhere to the market orientation, further strengthen market development and market management, rationally arrange production, and achieve sustained and stable development of the LED business.
In 2014, Ledman Optoelectronics participated in domestic and foreign professional exhibitions such as the Netherlands ISE Exhibition and the 10th Guangzhou International LED Exhibition in 2014. It exhibited street lamp tunnel lamp series, ultra-thin double-sided light-emitting panel lamp series, industrial and mining lamp series with a power of up to 400W and other products. Through the exhibition, Ledman Optoelectronics promoted LED products to the international market. In addition, it also provided technical support and communication platforms for customers through new product launches and other methods, expanding the company's influence in the industry.
Dongguan Qinshang Optoelectronics Co., Ltd., its wholly-owned subsidiary, Lehman Energy Saving and joint bidding company, signed a contract with the Municipal Central Management Station of Shishan Town, Nanhai District, Foshan City on the smart LED street lamp energy-saving renovation contract energy management procurement project in the public lighting field of Shishan Town, Nanhai District, Foshan City, Guangdong Province, marking that the company's energy management contract (EMC) service level has been further recognized by the market and is in line with the concept of energy conservation and environmental protection.
Faced with the raging wave of mergers and acquisitions in the LED industry, Ledman Optoelectronics was not willing to lag behind and looked for suitable M&A targets in the industry. In 2014, it completed the equity transfer of Ledman Europe and acquired 51% of its equity. It then used its own funds to acquire 51% of the equity of Shenzhen Kangshuozhan Electronics Co., Ltd. through capital increase and transfer, entering the field of high value-added creative and special-shaped displays, and increasing the added value of LED products.
The 13 projects developed and researched by Ledman Optoelectronics in 2014 are all about LED. In the future, it will still take energy conservation and environmental protection as its own responsibility, be market-oriented, and take brand development as its strategy. It will develop the five main businesses of LED devices, LED displays, LED lighting, LED media business and LED energy-saving services in parallel, consolidate and expand the company's leading position in the LED industry, and further improve market competitiveness.
Comprehensive layout of the football ecological industry chain
In recent years, positive sports policies have been continuously introduced. In 2011, the State Sports General Administration issued the "Twelfth Five-Year Plan for the Development of Sports". In 2012, the Chinese Football Association passed the "Reform Plan for the Separation of Management and Administration of the Chinese Football Professional League". In October 2014, the State Council once again issued the "On Accelerating the Development of the Sports Industry" "Several Opinions on Promoting Sports Consumption" (hereinafter referred to as the "Opinions"). In February 2015, the deep reform team issued the "National Football Reform Overall Plan". These policies fully encourage diversified capital investment, reform the football event revenue distribution mechanism and other reform policies, and provide policy support for the loosening of football and the realization of market-oriented operations.
Coupled with economic development, consumption upgrades also provide conditions for the rapid development of the sports media field. At present, the proportion of my country's sports industry in GDP is only about 0.6%. Compared with the sports industry in developed countries, which accounts for more than 2%, it is still at a relatively low level, and there is a lot of room for future development. In 2013, China's sports (and related) industry had a total output of 1.1 trillion yuan and an added value of 356.3 billion yuan. It is expected that the added value of the industry will exceed 400 billion yuan in 2014. The above-mentioned scale corresponds to per capita sports consumption of only 27 US dollars (vs. the global average of 217 US dollars per year). The relatively low per capita consumption level provides room for rapid development in the future. According to the "Opinions", the total scale of my country's sports industry will exceed 5 trillion yuan in 2025. The compound growth rate of my country's sports industry in the next ten years will be approximately 25.8%.
Regarding the future development of the company, Ledman Optoelectronics stated that based on the existing LED main business, it will extensively deploy the football business and develop the LED main business and sports media business in parallel. Relying on high-tech LED stadium advertising electronic displays and related services that widely cover Chinese football stadiums, we will increase the development of business rights in the football field and improve the football ecological industry chain to consolidate and expand our leading position in the LED industry, further improve the company's competitiveness, and achieve sustained and stable development.
At the same time, in order to fully implement the strategic layout of joint development of LED main business and sports media business, Ledman Optoelectronics will actively integrate internal resources in 2015, actively promote the integration of LED business and football media business teams through detailed planning, discussion, analysis, and implementation of operation management business in the field of sports media, optimize sales resources, so as to gradually establish a new pattern of management and control, sector coordination, and professional operations, and achieve rapid development of sales performance while creating value for customers. Continuously innovate management methods and methods, meet the development needs of sports media in the new situation through informatization construction and mobile client layout, strive to promote product and service innovation and quality improvement, give full play to the advantages of flexible mechanisms, actively develop high-end product markets, optimize revenue structure, and enhance the company's profitability.
Conclusion:
Under the general trend of the development of the LED industry, Ledman Optoelectronics has adopted the strategy of "grasping both LED and sports industries, both hands must be strong". It has mastered the resources of the LED industry and is based on its upstream position in the sports industry, looking for business models and development opportunities suitable for future development. It has gradually formed a development pattern with LED as the main business and extending to the field of sports media, realizing the transformation from a single product provider to a brand service operator. However, the LED market in the future will always be ever-changing. Ledman Optoelectronics’ two-way drive strategy can reduce the operational risks of a single industry and achieve diversified development!
ANNA