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Dongbei is the dark horse in this year's LED stocks. The first quarter went from loss to profit. The second quarter revenue growth rate of 70%, profit growth rate of 50%, into the second half of the busy season, the operation continued to grow, the first In the third quarter, the consolidated revenue was 2.523 billion yuan, and the quarter was up by 40%. Wu Qinghui, chairman of the board of directors, said that this year, the demand for LED backlighting has recovered. Dongbei is the big winner of the Taiwan factory and will be busy until December. The following is a summary of the interview.
Q: Dongbei's operating performance was better than expected this year. What are the main drivers?
A: After the adjustment of the LED industry at the end of last year, the backlighting market that Dongbei focused mainly on was apparently rapidly recovering this year. In particular, the penetration rate of LED TVs will reach 70% this year (global average). Dongbei is also developing TV LED backlighting in Taiwan. More focused on the company, the degree of benefit is more obvious, it can be regarded as the big winner in the industry.
The new customers in Japan and Taiwan Department of Dongbei actively developed new sources of customers outside the Korean system, including the six major color TV sets, Japanese and Taiwanese plants in the mainland. All of them were our customers, so the results were at the end of the first quarter and the second quarter of this year. At the time of recovery, Dongbei operations grew significantly. In addition to LED TVs, the products for notebooks and touchpads (NB and Tablet) have been successfully shipped this year. Among them, Tablet backlighting products have also been adopted by international brands.
On the other hand, LED lighting also has an obvious bonus. This market demand will only increase. It will drive East Bay's profitability. From the beginning of this year, it will show a month-by-month growth, and the overall profitability will gradually return to positive growth.
Q: The penetration rate of LED TV is as high as 70%. How about the lighting market?
A: LED backlighting applications, with TV as the primary end product of observations, penetration rate reached 70% this year, and it has indeed been regarded as the end of “mandatory growthâ€. I estimate that the LED backlight market will show “naturalness†after 2 years. "Growth," which also means that the future of the LED industry will depend on lighting.
4 to 5 times growth over the next three years. With the penetration rate of global LED lighting in the lighting market, this year's penetration rate is about 10%, and it will rise to 15% to 20% next year. It has been estimated by industry surveys that it will reach 2015. 50%. From the previous year to this year, it is about 3 years, 3 to 4 times growth, and in the next 3 years, it is estimated that it will grow 4 to 5 times.
Q: So you think that the explosive power of the LED lighting market is just about to show?
A: Yes, LED lighting has reached maturity this year. From the demand point of view, after three years of market education, consumers are willing to accept LED lighting, and also believe that LED lighting brings energy-saving benefits. In particular, after the 311 earthquake in Japan last year, the penetration rate of LED lighting in the Japanese market has doubled in half a year. To 40% (of which LED bulbs have a higher penetration rate of 60%). In Taiwan, for 1 kWh of electricity, you can only use traditional lamps for 1 hour. If you use LED lamps, it is 7 hours. The price of electricity has been rising. It is very cost-effective to change lights.
From the point of view of sweetness to making money, based on the quality of LED lighting, the efficiency of LED light bulbs is now higher than that of energy-saving light bulbs, and you will also be surprised to find that good quality LED light bulbs do the full-cycle light angle. To 320 degrees, the uniformity of the light is enough, there will be no shadow of light, and it will not feel that the light is shining down in some corners, so consumers have generally accepted LED lights.
From the point of view of the price of LED lighting, this year's price reduction is reduced to this, the sweet spot has already arrived, and now it is necessary to profit from fierce competition.
Q: How is East Bay's progress in LED lighting layout?
A: The indoor lighting of LED tubes, light bulbs, and flat panel lights was well laid out as early as 2 and 3 years ago, so now I am in this market with a good harvest this year. East Bay walks through the roads, brand OEM routes, and does not use its own brand. As we all know, Datong is an OEM of East Bay. A good road to sell in Japan is Dongbei OEM, so others cannot enter the Japanese market. Dongbei had already entered the factory by OEM. Next, Dongbei will also expand orders for OEMs of European and American international brands, and cooperate with mainland Putian Hongyan Electric Appliances and BOE Lighting. These OEM and ODM orders will gradually reflect operations in the coming quarters. 
