Jingtai Optoelectronics: Innovation wins, troika drive high growth

[Source: "High-tech LED - Research and Review" July issue Hu Yanling]

From the establishment of the 100 million yuan revenue to the leap, Shenzhen Jingtai Optoelectronics Co., Ltd. (hereinafter referred to as "Jingtai Optoelectronics") took only two years. From the breakthrough of 100 million yuan to 300 million yuan, the time set by Jingtai Optoelectronics is still 2 years.

“Jingtai Optoelectronics was established in 2008. In 2010, the company’s revenue exceeded 100 million yuan. In 2011, its revenue doubled. For 2012, as early as the year ago, Jingtai Optoelectronics set a year-end goal and strived for an output value of 300 million. Gong Wen, general manager of Jingtai Optoelectronics, described the grand blueprint for the development of Jingtai Optoelectronics in an interview with Gaogong LED.

The goal of high-speed growth has brought a steady flow of momentum to the company, and Jingtai Optoelectronics has begun a non-stop expansion. According to the company's previous plan, this month's monthly production capacity will be increased from 400KK to 600KK. However, in view of the ever-increasing volume of orders, the company has already completed its scheduled expansion target as early as June.

Orders continue to flow, even if the capacity of 600KK is no longer sufficient. Jingtai Optoelectronics plans to expand 200KK, so that the company's monthly production capacity will reach 800KK or more. The new capacity will be mainly invested in fast-growing LED lighting and automotive lighting devices. For the LED display device that the company started, Gong Wen said that Jingtai Optoelectronics will maintain the steady development of the display, but its share in the company will decrease in the future.

Troika

Jingtai Optoelectronics started with LED display devices, adhering to the sales philosophy of different counterparts, and successfully entered the big customer system such as Zhouming, Lianjian, Ai Bison and Liard with the sales strategy of “big customers”. When the gross profit of the LED display is becoming thinner and the peers are bothered by the difficulties of many small customers, Jingtai Optoelectronics can be calm, because the big customers have enough credit guarantee. It is reported that the top ten display customers of Jingtai Optoelectronics contributed more than 70% of the company's display business.

Not only in the sales model, but also in the product design, Jingtai Optoelectronics has also made the first test. In 2012, Jingtai Optoelectronics developed the “world's smallest full-color LED components”, leading the LED display to the HD era. At the same time, Jingtai Optoelectronics successfully applied SMD LEDs to outdoor LED displays, which not only reduced the weight of the display by 50%, but also reduced its thickness by 70%. Although the outdoor LED display is still the world of LEDs, Gong Wen believes that SMD LEDs will replace the in-line LEDs in the near future with its protruding advantages.

With its innovative business philosophy and keen insight into market trends, Jingtai Optoelectronics firmly stands in the display market. But obviously, the single market can't meet the high-speed growth demand of Jingtai Optoelectronics. Jingtai Optoelectronics has locked in the larger LED general lighting market and the highly profitable LED automotive lighting market. “Diversified investment can quickly improve the company's performance, and greatly improve the company's ability to resist risks and diversify the company's operating risks.” Gong Wen said.

The company has identified three major development directions in the future, namely LED display, LED lighting, and 3C products. 3C products are Car (Automotive Lighting), Communication (Communication), Consumer Electronics (Consumer Electronics), of which automotive lighting will be the main product in 3C products. Gong Wen defines these three development directions as the “troika” that drives the company's rapid growth.

For Jingtai Optoelectronics, LED general lighting and LED automotive lighting are completely different from the two new industries of LED display. What remains unchanged is that Jingtai Optoelectronics has always carried out the spirit of innovation throughout the exploration of these two new industries.

In the design of lighting products, Jingtai Optoelectronics adheres to its consistent innovation concept. The company has identified two major routes, the medium power route (0.2-0.5W) and the MLCOB route, which are dominated by vertical cooling technology.

High-power products have low cost and low light efficiency; low-power products can achieve high light efficiency but high cost, while medium-power products can combine the advantages of both and improve their shortcomings. Jingtai Optoelectronics pioneered the mid-power product line, which can achieve high light efficiency and low cost. At the same time, the company has also increased its research and development efforts on COB in the past two years, and developed the third generation COB product - MLCOB. The advantage of COB is that it can solve the cost and heat dissipation problems, but the light efficiency is difficult to improve. Based on the second generation COB, MLCOB improves the light efficiency by 10%.

In the field of automotive lighting, Jingtai Optoelectronics passed the SO/TS16949:2009 certification issued by the International Automobile Manufacturers Association (IATF) in July 2011, and has a permit to enter the automotive industry supply chain. At present, Jingtai Optoelectronics has become a direct or indirect supplier of LEDs for vehicles such as BYD and Yutong, and has been tested with several car manufacturers.

At present, the business structure ratio of LED display, LED lighting and 3C products of Jingtai Optoelectronics is 50%, 30% and 20% respectively. Gong Wen pointed out that the company will continue to explore the breadth and depth of these two businesses with LED lighting and automotive lighting as the leader. As for the LED display business, the company's performance proportion will gradually decrease, and will not exceed 30% in the future.

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