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2020.9.17-19 | Shanghai New International Expo Centre

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NATIONSTAR: The impact of the epidemic is under control, and the business will rise steadily in 2020

22.02.2020 09:34

On February 10, NATIONSTAR introduced and shared the company's 2019 operating situation, the impact of the epidemic situation on the company's operations, the current resumption of work, and the company's Mini LED layout progress.
1. The overall operation will decline slightly in 2019, and the operation will rise steadily in 2020
Regarding the company's operation in 2019, NATIONSTAR stated that in 2019, under the market environment of complicated economics at home and abroad, stalemate in trade frictions, and a slowdown in the growth rate of the LED industry. The company deeply implements product and technology innovation-driven development strategies, optimizes product and customer structure, coordinates overall expansion of production and capacity, and improves employee incentives.
During the reporting period, the company's overall operation showed a steady decline in the whole year, mainly due to the mid-stream white light packaging, which was affected by the sluggish downstream demand and the revenue fell short of expectations, and the upstream chip business was negatively affected by the fierce market competition. The company's core business, display packaging, module products, and other production and sales conditions are good; the company's financial status is good, the funds are abundant, and it has a good ability to resist risks.
In 2020, the company will continue to do a good job in all aspects of technology research and development, quality control, management innovation, cost control, expansion of production and capacity, market mining and other aspects to achieve a steady rise in the company's operations.
2. The impact of the epidemic on the company's operations is still under control, and personnel will be arranged to resume work in stages and in batches
Regarding the impact of the epidemic on the company's operations and the current resumption of work, NATIONSTAR said that the impact of the epidemic on the company's operations is currently in a controllable stage, counting from the originally scheduled normal start date, plus the holiday delay and the time of the local government's epidemic isolation The requirement is no more than one month longer than the originally scheduled normal return time.
In addition, the seasonal characteristics of the LED business are relatively obvious. The first quarter is relatively off-season, which has a relatively small impact on the annual performance. Based on the whole year, the company can hedge the resumption of delayed resumption through scientific measures such as time management, new capacity investment and release. On the other hand, the epidemic situation also brought certain market opportunities to the company. The company participated in the supply of some anti-epidemic materials and obtained certain market opportunities for new orders. At the same time, the government's targeted support policies, such as preferential loans, will affect the company's production. Positive impact on operations.
In addition, the company strictly implemented the return and quarantine measures of relevant personnel in accordance with the epidemic prevention policy. Starting February 10, the company will arrange personnel to return to work in batches in an effort to resolve the impact of the epidemic situation on production and operation.
3.Mini LED will enter the mainstream market and demand will gradually expand
Regarding the Mini LED market and the company's current progress, NATIONSTAR said: "The industry has no official definition of Mini LED at the moment. The Mini LED we are talking about is defined according to the dot pitch of the application scenario, which ranges from P1.0 to P0.1. The pitch is defined as Mini, and Mini is initially defined as a transitional product. Because Micro is difficult to achieve commercialization in the short term in terms of technology, industry and cycle, it now seems that we believe that with the opening of the entire application market, the product exists a cycle. It will be longer, Mini may not be a transition period, but enter the mainstream market period. "
In 2018, the company launched the world's first Mini LED new device product. After two years of market warm-up, the product industry chain is gradually improving. The major screen manufacturers and TV manufacturers in the world have invested a lot in product display and commercial promotion. The development atmosphere of the industry, the gradual expansion of the lifting speed and scale, and the continuous increase in the market's requirements for clarity, the scale of product promotion is expected to further expand in 2020. The company set up a dedicated Mini manufacturing department in December 2019 to respond to the order demand and market size in 2020. At the same time, RGB plans to invest 500 million yuan for the second phase of expansion. Mini LED ’s capacity planning in the first half of the year accounts for nearly 20%. The company's routine goal is to achieve basic full production.
Led exhibition believes that there have been new competitors in the industry indicating that they are optimistic about the market. Everyone has recognized the technology and market. The industry still has a lot of imagination, which also confirms the company's forward-looking layout in this industry. Under this premise, on the one hand, the company treats the new competitive situation with an ordinary mind, and strives to consolidate and strengthen its own competitive advantages, including brand advantages, technical advantages, channel advantages, customer advantages, through capacity expansion, technology upgrade, management optimization and other measures. Continue to keep focusing on LED packaging to cope with new developments and changes in the market.
Source: LEDinside