Shida's transformation of LED lighting has a first-mover advantage

LED screen network as the first listed company in the electronic manufacturing services (EMS) industry, the benefits reached the small board in 2007. However, as the profitability of the EMS business continued to be low, the company began its strategic transformation in 2009 and made LED lighting one of the key development directions for future business diversification.

It is understood that in order to enhance the technical research and development strength, establish a new product operation management system and expand the existing production capacity, it is beneficial to launch a non-public offering of stock projects at the end of 2012, raising a total of about 400 million funds. The fundraising projects include Wuxi LED indoor commercial lighting. Production and construction projects and other LED projects. In February of this year, Shiyida officially obtained the non-public issuance approval of the CSRC.

Judging from the current domestic LED lighting industry market structure, the number of listed companies is large, the market competition is extremely fierce, and how will the company benefit from a certain market share in the fierce competition?

Qiao Wei, general manager of Shida, believes that although there are many LED manufacturers in China, most of them are LED packaging enterprises. The manufacturers focusing on LED lighting applications are not yet in scale, and LED lighting application manufacturers are still in the stage of melee.

Qiao Wei said that the extension of the LED lighting business to the LED lighting business is basically at the same starting line as most traditional lighting companies. In addition, the company has accumulated rich experience in lighting product planning and supply chain management in the process of providing Philips EMS services for lighting products for a long time, and has certain first-mover advantages when extending to the LED lighting business.

Qiao Wei said that because the LED lighting industry belongs to the semiconductor optoelectronic device manufacturing industry, the requirements for LED lighting production and testing are basically the same as those of the electronics industry, and the company has rich experience in production, manufacturing and management in the electronics industry. The accumulation of traditional lighting companies in the electronics field is relatively weak.

Qiao Wei also said that because the popularity of LED lighting is not high, the profit level of the traditional lighting business is relatively stable, and the two are in a competitive relationship, making traditional lighting companies invest less time and effort in the LED business. However, since the company started planning LED lighting business, the management is determined to vigorously develop LED lighting business, and invested a lot of manpower and material resources in LED lighting business.

Compared with the current domestic LED lighting companies, Qiao Wei believes that Shida will focus on LED indoor commercial application lighting products, and can concentrate on improving the technical level and technological level, relying on strong system integration capabilities to meet customer needs.

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