The LED industry has broad prospects. Absen has obvious advantages in export sales.

Absen is committed to providing customers with a full range of LED display and LED lighting products and solutions. Its products are exported to 118 countries and regions, and it has successfully implemented more than 6,500 classic cases. It is an outstanding company in the field of LED applications. At present, the company’s products are mainly LED full-color displays, accounting for more than 90% of sales revenue. The industry has broad prospects LED display screens have a wide range of applications and have formed a broad market around the world. According to relevant data, the global LED full-color display market size reached US$6.412 billion in 2013. China’s LED full-color display industry started late, but it is facing good market development opportunities. According to relevant data, from 2007 to 2013, China's full-color display market expanded from 4.392 billion yuan to 18.793 billion yuan, an increase of 328%. Relying on refined management, continuous technological innovation, advanced LED packaging device and display integrated production system, and efficient global marketing network, Absen has continuously enhanced its competitive advantages and achieved sustained and rapid growth in operating performance in the past three years. From 2011 to 2013, the company's operating income was 415.27 million yuan, 623.73 million yuan, and 729.77 million yuan respectively. The growth rates in 2012 and 2013 were 50.2% and 17% respectively. With the continued growth of global market demand in the future and the implementation of the company's LED full-color display construction project, the company's product sales scale will continue to grow. The company complies with changes in market trends and strives to create high-brightness, full-color LED display series products. With continuous technological innovation, advanced LED packaging device and display integrated production system, and efficient global marketing network, it can reduce its dependence on individual market sales and effectively resolve the adverse impact of individual market fluctuations on product sales. Therefore, in the next few years, the market share of the company's display products will increase year by year. Obvious advantages in export sales Absen’s products are mainly exported. From 2011 to 2013, the company’s product export revenue and proportion expanded year by year. Export revenue was 274.93 million yuan, 446.34 million yuan, and 581.82 million yuan respectively, accounting for 66.2%, 71.6%, and 79.7%. According to public information, the company's overseas sales revenue during the reporting period was the largest compared with listed companies in the same industry. It has gradually established a good brand image globally and has extensive market visibility. The company is based on the global mid-to-high-end LED full-color display market and has nearly 3,000 customer resources in many countries and regions. The global market structure has opened up market space for the continued growth of the company's product export sales. At the same time, the geographical decentralization of the product market can also greatly reduce the company's dependence on a single regional market and improve the company's ability to resist risks. Compared with foreign companies such as Barco and Daktronics, although the company's business scale is smaller and there is a certain gap in technology research and development strength, the overseas market has developed rapidly due to the high cost performance of its products, forming a certain competitive advantage. The sponsor believes that the company is ahead of major domestic manufacturers in terms of overseas market share. With continuous technological innovation, advanced LED packaging device and display integrated production system, and efficient global marketing network, the company has achieved the upgrade of its leading products from customization to standardization, and has certain comparative competitive advantages. Excellent profitability Good product market effect, stable business strategy, and excellent management capabilities make the company's asset management and profitability generally better than those of comparable listed companies in the same industry, thus laying a solid foundation for the company to withstand market risks and maintain stable growth. In 2013, the company's accounts receivable turnover rate was 7.94, inventory turnover rate was 5.19, weighted average return on net assets was 38.99%, and surplus cash coverage ratio was 148.16%. Its main asset management and profitability indicators have advantages among comparable listed companies in the same industry. With the promulgation and implementation of a series of supportive policies, the LED application industry has entered a period of rapid development. The company seized market opportunities, gave full play to its core advantages, and through effective market development measures, the operating income continued to grow and reached a large scale during the reporting period. At the same time, it strengthened its own management capabilities and improved its cost control level, so that the net profit also showed an upward trend year-on-year. From 2011 to 2013, the average comprehensive gross profit margins of domestic listed companies were 31.21%, 31.29%, and 33.73% respectively; the average comprehensive gross profit margins of overseas listed companies were 27.65%, 27.83%, and 29.61%. Absen's comprehensive gross profit margin is 33.17%, 36.43%, and 35.74%, which are higher than the average of domestic listed companies and overseas listed companies respectively.