LED lighting industry loses money but will continue to invest

Practice the Chinese dream in the new issue of the Shenzhen Stock Exchange. Into the activities of listed companies, dozens of small and medium-sized investors came to the Abison headquarters in Longgang, Shenzhen. According to the data, Abison's operating income in 2013 was 7. 3 billion yuan, sales orders continued to grow in 2014, with cumulative sales orders exceeding 1 billion yuan. This broke the bottleneck of the LED display industry's sales orders of 1 billion yuan in the past 20 years. In the first three quarters of this year, Abison achieved operating income of 7. RMB 0. 1 billion, net profit 1. RMB 0. 1 billion. In the first three quarters of this year, Abison LED screen sales achieved revenue in China. 0. 4 billion yuan, a year-on-year increase of more than 50. For why not focus on development at home, Ding Yanhui said frankly: there is no confidence in the domestic business environment. Moreover, the potential of the international market is still very large. In the case of limited time and energy, we will focus on expanding the overseas market. Ding Yanhui said that the company will continue to maintain a proportion of about 20 in the domestic market in the future. It is understood that Abison is currently setting up overseas branches and offices to continue to expand overseas markets. Ding Yanhui said that in the future, it may consider mergers and acquisitions of some companies with technological potential, and consider the layout of the industrial chain. The company's short-term development strategy is to focus on indoor business photos and provide products to European and American customers and engineering customers. As for the plan after three years, Ding Yanhui said: Still waiting to see. At present, the competition in the domestic LED lighting industry has entered a white-hot stage. Under the harsh environment of chaotic market, lack of standards and homogeneous products, how does Abison maintain its own advantages and stand firm, become a concern for investors. Although the threshold for entering this industry is very low, the requirements for this technology are very high and it is very difficult to do. Not everyone can make a good display. Since last year, a large number of companies have closed down, especially the living environment of medium-sized companies. Ding Yanhui said that the LED display will only go more and more in the future. The next step will be the competition of real swords and guns, and the ABC level of the enterprise will be divided. At present, LED lighting is basically a state of loss in the whole industry, but we will continue to invest, focus on our own brand, and resolutely oppose the price war. Ding Yanhui said. According to the Ebsen prospectus, the company introduced a zero down payment sales policy for some customers in July 2010, which is mainly for standardized products. That is, customers do not need to pay the advance payment when placing an order, and all or most of the payment is paid before delivery. At present, Abison has implemented a zero down payment policy for A1088 and A1688 star products, as well as A2, A3pro and AI03 small-pitch products. After the introduction of the above policies, the industry was in an uproar. Many people question how to control the risk when the customer sells the goods without a deposit? Abison believes that because the LED display screen is a customized product, the customer can't see the real thing and is worried that the received real thing can't achieve the desired effect. It is precisely to understand the customer's concern and combine the strength of the customer, only the zero down payment is a challenge to the traditional rules. The results were unexpected, especially for overseas customers, who agreed with Abison's approach. However, zero down payment also brings huge Accounts receivable and inventory risks. Ding Yanhui said that the company's accounts receivable in 2013 were about 0. 1 billion yuan, and the profit was about 0. 1 billion yuan, basically achieving zero inventory. At the same time, all accounts receivable are guaranteed by China's export credit insurance. There have also been cases of customer bankruptcy before, all of which are compensated by insurance companies, so this innovative business model is safe. Whether it will cooperate with e-commerce to develop Internet business. Ding Yanhui said that the company established the Ministry of Information Technology very early and is studying the use of the Internet to develop business, but the company will not particularly emphasize the role of the Internet. Although the Internet is a good tool, it can sell products on the internet but cannot make products. Ding Yanhui said.