[Source: "High-tech LED - Research and Review" July issue Hu Yanling]
Last year's fierce competition in the packaging industry and large-scale price cuts have cast a shadow on the financial statements of packaging companies. Edison Optoelectronics Co., Ltd. (hereinafter referred to as Edison) is no exception.
Edison's financial statements for 2001 showed that the company's consolidated revenue was NT$2,506 million (1 RMB to NT$4.7 million), with an annual decline of 17.24%; operating margin was NT$504 million, compared with the previous The NT$927 million a year was a sharp decline of 45.6%; the gross profit margin was 20.11%, which was 10.52% lower than the 30.63% in 2010; the net profit was NT$210 million, and the annual recession was 57.1%.
"The price of packaged components is declining. It is difficult to maintain stable growth of components by component sales alone. It is the king of the added value of products." Edison's Greater China business director Chen Junxi said that the company pushed LDMS in 2011 ( LightingDesign Manufacturing Service) is a service concept that integrates the key optical, mechanical, electrical and thermal technologies of LED lighting, and manufactures a small number of customized lighting system modules for customers. The company has won many well-known European and American large and medium-sized small and medium-sized enterprises. The favor of the lighting brand, to obtain high-margin OEM orders.
According to Chen Junxi, the LDMS service is mainly aimed at European and American customers, but given the European debt crisis has a certain impact on European and American customers, and the Chinese mainland market has huge business opportunities, hoping to open the door of traditional lighting brands in mainland China, providing them with exclusive LED application design. .
“The company’s investment in mainland China has reached nearly US$50 million, with factories in Dongguan, Guangdong and Yangzhou, Jiangsu, respectively.†Chen Junyi said that the Yangzhou plant is the company’s main production base in the future and the operation center of Greater China.
LDMS pulls up the gross profit
Edison was founded in 2001, and its annual turnover has increased by 60%-70%. After the financial crisis in 2008, the growth rate began to slow down. Until the past two years, the entry of LED TV backlight products has caused the price index of packaged products to drop by 60%. "Although the sales of packaged components has increased, the increase in the number is difficult to compensate for the decline in turnover caused by the price decline." Chen Junyi pointed out that pure sales packaging The components appear to be passive.
“In the past, there was no problem in simply selling packaged components. However, customers are now demanding higher and higher quality products. There are not many differences in the packaged products on the market. If you simply sell components, it will only fall into price competition.†Chen Junxi said, improve Product added value is the most important.
In 2011, Edison began to promote the LDMS all-round LED professional lighting integration service, focusing on the customized service capability from LED components to finished products. Assist customers in solving technical difficulties that may be encountered in the process of building LED lighting equipment, including thermal management, circuit construction, mechanism design and optical design, and accelerate the time-to-market of product development into the lighting market.
"In 2011, LDMS's revenue accounted for 10%-15% of the company's total revenue. Up to now, this figure has risen to 30%. Our goal this year is to increase it to about 60%." Chen Junxi revealed.
The LDMS service launched by Edison is mainly aimed at foreign markets such as Europe and the United States. Although the research and development capabilities of European and American countries are not weak, there are many talents for cultivating talents. The LDMS service is mainly for well-known lighting brands that have access channels and engineering strength but do not have design and development capabilities. At present, the supply of foreign LDMS services is mainly small and diverse, and the gross profit is also high, which drives the overall gross profit of the company.
Considering that mainland China's raw material supply capacity is very strong, LDMS is only for large-scale project customers in the mainland. "For example, traditional lighting companies that have strong channels but no design capabilities are the manufacturers we want to actively cooperate with," said Chen Junyi.
In order to achieve the long-term goal of promoting the LDMS model, in order to vertically integrate the upstream and downstream supply chains, the board of directors of Edison recently established a subsidiary, Aifa Investment, with a capital of 300 million yuan, and will invest in Aifa in the future. The company's upstream and downstream supply chain manufacturers have carried out strategic cooperation, and are still working in front-end operations, and have already locked in some manufacturers to negotiate.
Last year's fierce competition in the packaging industry and large-scale price cuts have cast a shadow on the financial statements of packaging companies. Edison Optoelectronics Co., Ltd. (hereinafter referred to as Edison) is no exception.
Edison's financial statements for 2001 showed that the company's consolidated revenue was NT$2,506 million (1 RMB to NT$4.7 million), with an annual decline of 17.24%; operating margin was NT$504 million, compared with the previous The NT$927 million a year was a sharp decline of 45.6%; the gross profit margin was 20.11%, which was 10.52% lower than the 30.63% in 2010; the net profit was NT$210 million, and the annual recession was 57.1%.
"The price of packaged components is declining. It is difficult to maintain stable growth of components by component sales alone. It is the king of the added value of products." Edison's Greater China business director Chen Junxi said that the company pushed LDMS in 2011 ( LightingDesign Manufacturing Service) is a service concept that integrates the key optical, mechanical, electrical and thermal technologies of LED lighting, and manufactures a small number of customized lighting system modules for customers. The company has won many well-known European and American large and medium-sized small and medium-sized enterprises. The favor of the lighting brand, to obtain high-margin OEM orders.
According to Chen Junxi, the LDMS service is mainly aimed at European and American customers, but given the European debt crisis has a certain impact on European and American customers, and the Chinese mainland market has huge business opportunities, hoping to open the door of traditional lighting brands in mainland China, providing them with exclusive LED application design. .
“The company’s investment in mainland China has reached nearly US$50 million, with factories in Dongguan, Guangdong and Yangzhou, Jiangsu, respectively.†Chen Junyi said that the Yangzhou plant is the company’s main production base in the future and the operation center of Greater China.
LDMS pulls up the gross profit
Edison was founded in 2001, and its annual turnover has increased by 60%-70%. After the financial crisis in 2008, the growth rate began to slow down. Until the past two years, the entry of LED TV backlight products has caused the price index of packaged products to drop by 60%. "Although the sales of packaged components has increased, the increase in the number is difficult to compensate for the decline in turnover caused by the price decline." Chen Junyi pointed out that pure sales packaging The components appear to be passive.
“In the past, there was no problem in simply selling packaged components. However, customers are now demanding higher and higher quality products. There are not many differences in the packaged products on the market. If you simply sell components, it will only fall into price competition.†Chen Junxi said, improve Product added value is the most important.
In 2011, Edison began to promote the LDMS all-round LED professional lighting integration service, focusing on the customized service capability from LED components to finished products. Assist customers in solving technical difficulties that may be encountered in the process of building LED lighting equipment, including thermal management, circuit construction, mechanism design and optical design, and accelerate the time-to-market of product development into the lighting market.
"In 2011, LDMS's revenue accounted for 10%-15% of the company's total revenue. Up to now, this figure has risen to 30%. Our goal this year is to increase it to about 60%." Chen Junxi revealed.
The LDMS service launched by Edison is mainly aimed at foreign markets such as Europe and the United States. Although the research and development capabilities of European and American countries are not weak, there are many talents for cultivating talents. The LDMS service is mainly for well-known lighting brands that have access channels and engineering strength but do not have design and development capabilities. At present, the supply of foreign LDMS services is mainly small and diverse, and the gross profit is also high, which drives the overall gross profit of the company.
Considering that mainland China's raw material supply capacity is very strong, LDMS is only for large-scale project customers in the mainland. "For example, traditional lighting companies that have strong channels but no design capabilities are the manufacturers we want to actively cooperate with," said Chen Junyi.
In order to achieve the long-term goal of promoting the LDMS model, in order to vertically integrate the upstream and downstream supply chains, the board of directors of Edison recently established a subsidiary, Aifa Investment, with a capital of 300 million yuan, and will invest in Aifa in the future. The company's upstream and downstream supply chain manufacturers have carried out strategic cooperation, and are still working in front-end operations, and have already locked in some manufacturers to negotiate.
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