As the “red supply chain” continues to grow, the mainland LED faucet Sanan Optoelectronics will increase its revenue with the addition of new capacity, coupled with the Taiwan’s crystal power harvesting and stable unit price (ASP) strategy. I am afraid that I will surpass the crystal power for the first time.

Before the start of production reduction, the number of machines mastered was about 500, of which 450 were blue LEDs and 50 were quaternary LEDs. After the fourth quarter of last year, Jingdian faced a huge change in the economy and ASP fell, decided to adjust the order mode to stabilize the ASP, so decided to cut production by 25%. According to the statistics in this year, the number of machines in the crystal power plant has dropped to 375 units, still surpassing 300 units in Sanan.

However, although Sanan is a latecomer, with the equipment machine advancing with the times, most of the imported machines are larger in size and more efficient, and the Xiamen factory continues to expand production. On the other hand, this year, Jingdian is more focused on adjusting orders and stabilizing ASPs. Its operating strategy focuses on profitability over sprinting revenues, resulting in Sanan and Jingdian facing short-term revenues.

Even though Sanan Optoelectronics has a large government subsidy, Taiwanese manufacturers face unfair competition. However, with the data collected and the interview results, the legal person estimates that Sanan Optoelectronics will see 950 million US dollars and 1.1 billion in revenue next year. US dollars, under the conversion of about NT$30.2 billion, 35 billion yuan.

Although the LED industry's economic visibility is not high, the revenue trend is still variable, but in terms of Sanan's exposed financial figures, the company's revenue from 2010 is less than 200 million US dollars, and by 2015 it will exceed 700 million US dollars, equal to In the past five years, the scale of revenue has increased by 250%. Under the strategic support of the country and the favorable factors that the mainland has mastered the world's fourth largest lighting market, annual revenues remain on a fast-growing track.

Jingdian's revenue last year reached 25.51 billion yuan, and Sanan Optoelectronics was about 730 million US dollars. Crystal's revenue is still about 10% ahead of Sanan Optoelectronics.

In August of this year, domestic brokerages estimated revenues for Crystal Power in 2016 and 2017 to be 26.8 billion yuan and 28.3 billion yuan respectively. If the revenues of the two major factories are estimated by legal persons, the revenue of Sanan Optoelectronics is very likely this year. For the first time beyond the crystal.

In fact, the LED industry and legal persons quite agree with the transformation direction of Jingdian. The proportion of quaternary LEDs of Jingdian has been increased to 25-30%. High-end blue-chip chips such as CSP and FC have also started to expand production, which is an unprecedented proportion of operations. However, in terms of revenue or production base, Jingdian is extremely large. The proportion of any product placed on Jingdian’s revenue is small. Therefore, the transformation depends on the accumulation of sand into towers.

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