In the LED industry, there are only two years left in the LED factory in Jiangshan.

Li Bingjie, chairman of Jingdian, said that the entire LED industry will be fixed in the pre-2015 map. It is estimated that there will be only two wafer factories in Taiwan, and three in the mainland, all the wafer factories. The packaging factory only has these two years of opportunity.

As for Jingdian, Li Bingjie said that he has prepared 3 years of funds and is expected to carry out virtual vertical integration such as investment, shareholding and cooperation.

Li Bingjie believes that it is reasonable for the wafer factory to maintain a gross profit margin of more than 30%. However, even if this gross profit margin is reached, the average unit price (ASP) of LEDs will fall by more than 10% per year, and the price will fall even from 2011 to 2012. Expanding to more than 35%, the industry still needs time to recover.

Li Bingjie is still bearish on the boom in the first half of 2014. It is expected that the chip will enter the balance of supply and demand in the second half of the year.

Li Bingjie also said that the LED industry has been in the process of continuous integration. In recent years, Jingdian has continued to integrate. However, because Jingdian is not optimistic about the operation mode of LED one-stop operation, Jingdian adopts the virtual integration method and has prepared funds for 3 years. Vertical integration of upstream and downstream can be carried out through investment, shareholding and cooperation.

LED chips belong to the high capital expenditure industry. Even if the loss is still large, the net inflow of depreciation cash can be used every year. In the case of Jingdian, there are about 4 billion yuan (NTD, the same below), so Li Bingjie believes that the consolidation period Within the manufacturer, there will still be spare efforts for many actions.

Li Bingjie predicted that because the lighting market is worse than expected, although the TV backlight is slightly warmer, but the fourth season is still unable to get rid of the off-season effect, the industry will return 15-20% on average.

In the third quarter of Jingdian, the industry is in a profitable state, and profitable financial reports will be paid throughout the year. According to the cycle of Jingdian in the past few seasons, the second quarter and the third quarter accounted for 60% of the total. According to the operating conditions of Jingdian in the second and third quarters, the annual revenue was about 20 billion yuan.

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