Display market growth slows down

[Text / high-tech LED Zhao Hui] The transformation of the display enterprise has accelerated since last year. Liard has increased the intensity of outreach mergers and acquisitions. The prototype of the "Digital Outdoor Media Group" of the Joint Optoelectronics Division has been completed... all this comes down to In the highly mature display market, the growth rate has begun to slow down and the market is fully competitive.

Liard's semi-annual report shows that the traditional LED display sector's revenue for the first half of the year was 227 million yuan, a year-on-year increase of 25.82%, but it has slowed significantly compared with the growth rate of 30.36% of the small-pitch display business. Liard also admits that "the growth rate of LED display panels is slowing down."

In this regard, on the one hand, Liard increased the investment in small-pitch business, on the other hand, strengthened the development of outbound M&A. Up to now, Liard has successfully acquired four companies, namely Jinda Lighting, Connected Yida, Lifeng Culture and Jinlixiang, and plans to acquire 100% equity of PLANAR SYSTEMS, INC.

“The combination of Lifeng Culture and Jin Lixiang, the most innovative business segment in the four rounds will drive the rapid development of Liard. Design, service, content production, platform management, etc. derived from culture, sports, education and media. All of them will promote the strength of the sector through cooperation and investment, and promote the rapid transformation of Liard from product-based enterprises to content-based enterprises. “Liadan, secretary of Lidard, said that the company’s strategy has developed into a “four-wheeled circle”. In order to achieve the strategic goal of becoming the "leading expert in LED acoustic optoelectronic applications", we will take it a step further.

Liard’s financial report shows that the small-spacing business revenue in the first half of the year reached 250 million yuan, which has exceeded the traditional LED display revenue.

Although Lianjian Optoelectronics did not separately express the revenue of traditional display and small-pitch products, it also said in the semi-annual report that the company continued to adhere to the strategic goal of “Digital Outdoor Media Group” and continued to adhere to the development strategy of endogenous and extensional development. . In terms of endogenous development, the company maintained its stable development in the original business, and the LED display sector, in the face of fierce competition, the company continued to maintain the company's LED display by conducting a series of promotional activities and strengthening the research and development of small-pitch LED display applications. Leading position of the screen, linkage culture as the company's urban media construction and integration platform, sales performance continues to improve, operating income maintained steady growth.

Alto's electronic secretary Yang Sihua admits that LED display industry competition is intensifying, in the industry integration period, industry concentration is a trend, opportunities and challenges coexist.

According to the semi-annual report, the revenue of Alto's LED video display system in the first half of the year was 69.112 million yuan, a year-on-year decline of 34.50%. "LED display large projects and high-end LED display products market demand is insufficient, LED application industry has undergone major changes, competition has intensified, industry consolidation has increased, and overall growth has slowed down." Yang Sihua explained.

In the first half of the year, Abby's P12-P18 display revenue dropped 49.27% ​​year-on-year, and revenue was only 48.477 million yuan.

“We feel that in the first half of the year, except for a few areas (such as small-pitch products), the growth rate of the whole industry is slowing down, and the demand for customers' purchases is declining. There is no rapid growth in the past few years.” Deputy General Manager and Secretary of the Board of Directors Zhang Wenlei believes that although some companies still have an increase in operating income, there is not much growth in the company's own endogenous growth.

Li Shengfa, senior analyst of the High-tech Research Institute LED Research Institute (GGII), said that the display market is very mature and fiercely competitive. From the first half of the year, the traditional display business has basically no growth rate, and small spacing is the biggest highlight.

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