Views: 0 Author: Site Editor Publish Time: 2025-07-03 Origin: Site
Under the dual effects of global economic fluctuations and technological iteration, the Chinese LED industry is undergoing a profound transformation and challenge. Recently, the operational status and financing dynamics of Abbison and Liard, two leading companies in the LED display field, undoubtedly vividly depict the current situation of the industry, deeply reflecting the many difficulties and transformation pains faced by the LED industry.
The industry's funding dilemma behind financing replenishment
After terminating its convertible bonds, Abbison quickly launched a plan to raise no more than 360 million yuan through private placement with its actual controller, which had previously sparked controversy over "left-hand dividends and right-hand fundraising". In 2022, Abbison issued stocks to Chairman Ding Yanhui to raise 250 million yuan to supplement working capital, and then made a large dividend of up to 646 million yuan, of which the actual controller received about 221 million yuan. Now that there is sufficient funds in the account and the ability to repay debts has improved, the necessity of raising funds to supplement the current flow is questionable.
This highlights the significant decline in demand for LED display products in the market. The domestic market is facing huge challenges in terms of growth due to the reduction of government procurement and fierce price competition; Although overseas markets are Abbison's main battlefield, the growth rate has also decreased from 76% in 2022 and 46% in 2023 to 13.78% in 2024. Liard is also facing difficulties, with its core business segment of smart display business experiencing a year-on-year decline of 16.23% in domestic business revenue in 2024.
The main products have both decreased in quantity and price, and the market demand has shrunk significantly
Abbison's main product, LED display screens, experienced a simultaneous decline in production and sales in 2024, with production and sales decreasing by 23.72% and 4.83% respectively year-on-year, resulting in a year-on-year revenue decline of 8.81%. The company's domestic business revenue has almost halved, with a year-on-year decrease of 48.44%, while the growth rate in overseas markets has also slowed down significantly.
This highlights the significant decline in demand for LED display products in the market. The domestic market is facing huge challenges in terms of growth due to the reduction of government procurement and fierce price competition; Although overseas markets are Abbison's main battlefield, the growth rate has also decreased from 76% in 2022 and 46% in 2023 to 13.78% in 2024. Liard is also facing difficulties, with its core business segment of smart display business experiencing a year-on-year decline of 16.23% in domestic business revenue in 2024.
Overall, the LED display product market is facing a severe cold on the demand side, with procurement demand shrinking in government, commercial, and other application fields. This may be related to the comprehensive effects of macroeconomic situation, industry cycle, and new technology substitution, which have led to weak growth in the LED display product market, a decline in enterprise revenue scale, and enormous pressure on the industry to reshape market demand.
The gross profit margin has declined, and the value of profit is insufficient
Abbison's gross profit margin in 2024 decreased by 1.53 percentage points year-on-year to 27.48%, marking two consecutive years of decline. The gross profit margins in domestic and international markets have decreased by 7.88 percentage points and 3.66 percentage points respectively. The gross profit margin of Liade's core business intelligent display business in 2024 is 27.70%, and the gross profit margin of its domestic business has declined to 26.88%.
The decline in gross profit margin directly reflects the intensification of competition in the LED industry, the decrease in product unit prices, and the compression of corporate profitability. Meanwhile, during the Abbison period, expenses climbed, with sales expenses, management expenses, and research and development expenses increasing by 6.9%, 19.19%, and 1.61% respectively year-on-year in 2024, further eroding profits. However, nearly 50% of Abbison's profits in 2024 came from investment income and other income, while Liard suffered significant losses in net profit due to impairment of goodwill and intangible assets, resulting in a serious lack of profit value.
This indicates that LED companies have significant problems in cost control, improving operational efficiency, and building core business profitability. In the context of intense market competition and pressure on product prices, if enterprises cannot effectively control costs and optimize expense structures, it will be difficult to maintain a healthy level of profitability, and the overall profit space of the industry will face the risk of further compression.
Industry reshuffle accelerates, leading position changes hands
Liad has been ranked first in the global LED display industry market share for seven consecutive years from 2016 to 2022. However, in 2023, it was overtaken by Zhouming Technology, and the gap between the two will further widen in 2024. This shows the drastic changes in the competitive landscape of the LED industry, where the leading position is not static. Slight mistakes in technology, market, and strategy can all lead to companies being surpassed by competitors.
With the intensification of market competition, accelerated technological updates, and continuous evolution of customer demands, LED companies are facing unprecedented challenges. Enterprises that cannot keep up with the pace of technological development, meet the diversified needs of the market, and effectively respond to market competition, even if they were once industry leaders, may quickly be marginalized by the industry, and the speed of industry reshuffle may accelerate, leading to further changes in market concentration.
Dealing with difficulties, enterprises explore new ways out
Abbison has deployed its energy storage business, and although its revenue scale is currently small, it has made some progress. Liade has increased its investment in cultural and tourism night tourism business, establishing a group cultural and tourism headquarters in an attempt to upgrade its business model and build full chain capabilities. Faced with industry challenges, companies are seeking new business growth points and strategic transformation directions.
Expanding new businesses and exploring new business models for LED companies are positive measures to cope with market changes. As an emerging field, energy storage business has certain synergies with the LED industry in terms of technology and application, and is expected to bring new development opportunities to Abbison. And Liad's deepening layout of cultural and tourism night tourism business is also expected to leverage its advantages in display technology and content creation to explore new market space. However, the cultivation and growth of new businesses require investment of time and resources, and enterprises will also face many uncertainties and challenges in the process of transformation.
Overall, the Chinese LED industry is standing at a crossroads of development, with issues such as shrinking market demand, intensified competition, and declining profits intertwined. Enterprises are facing severe challenges to survival and development. At this critical period, LED companies need to deeply reflect on their development strategies, operational models, and technological innovation paths, hone their internal skills, enhance their core competitiveness, stand out in the industry reshuffle, and achieve sustainable development. At the same time, the entire industry also needs to strengthen collaborative cooperation, jointly respond to market risks, and promote the LED industry to move towards a new stage of development.
