Lianjian photoelectric LED display advertising business "bright sword" encountered resistance

[High-tech LED reporter Yang Zizhao ] Recently, Lianjian Optoelectronics (300269) issued a notice saying that as of now, Lianjian Optoelectronics has only completed the capital investment in the first and second phases of the Linkage Culture as originally planned.

Last year, the board of directors of Lianjian Optoelectronics passed the “Using the IPO of the initial public offering of RMB 91.91 million (the same below) to increase the capital of Shenzhen Linkage Culture Investment Co., Ltd. in three phases, and then the joint venture culture of Shenzhen Linkage Culture Investment Co., Ltd. (Beijing) Co., Ltd. "motion.

According to the plan, by the end of March 2013, Linkage Culture (Beijing) Co., Ltd. needs to complete the target of 150 LED display advertising points, but this plan has not been realized. The reason given by Linkage Culture (Beijing) is that some new constructions have been postponed due to the progress of the approval of relevant departments, but they will continue to select advertisement sites suitable for the outdoor LED advertising network of national landmarks.

On April 9th, Gaogong LED reporter called Lianjian Optoelectronics. Zhang Ruiting, the company's securities affairs representative, told reporters: "The company plans to distribute 150 LED outdoor advertising displays by the end of March 2013. 81 pieces have been completed at the end of last year, but due to the part The layout is not suitable and canceled. At present, the number of points has been around 100.” Zhang Ruiting said that it is not convenient to disclose the specific reasons for the withdrawal.

A market member of Lianjian Optoelectronics, who did not want to be named, said that “the problem of approval of the relevant departments” is not the only factor that caused the outdoor advertising screen layout plan of Lianjian Optoelectronics to fail to complete as expected. Market demand is the most fundamental reason. The person said that the outdoor advertising display has passed the golden age of development due to the excessive investment in the first two years in China.

It is reported that VisionChina Media, which was listed in the US, received a notification letter from Nasdaq last year, as VisionChina’s American Depositary Receipt (ADR) closed at less than US$1 for 30 consecutive transactions before July 12. The leading outdoor digital TV advertising network company in China faces the risk of delisting.

Another outdoor media company, Focus Media released the fourth quarter and full-year financial report for fiscal year 2012. As of December 31, 2012, Focus Media's annual revenue reached $927.5 million, an annual increase of 18%. However, in the fourth quarter, some of the company's core business declined, while the company's non-core business outdoor big-name last year's revenue fell sharply by 35%.

Many outdoor media companies are in the healing period after the industry is booming. The outdoor media industry is not as lucrative as the Chinese LED display companies expected. Due to the popularity of 3G smart phones in recent years, the rise of Weibo and WeChat, it is difficult for outdoor advertising to capture the interest of customers as in the past; secondly, compared with outdoor media with uncertain effects, traditional strong TV media is more attractive to customers. At present, the advertising sponsorship fees for TV programs such as "China's Good Voice" and "I am a Singer" have reached new heights. Third, there are too many companies entering the outdoor media field for a short time. The market has not yet been rapidly expanded by consumers. To a limit.

Li Jun, chairman of the LED display listed company Liard (300296.SZ), said that advertising screen change is a new marketing idea for LED display companies. It cannot be completely denied. It is still in the experimental stage. In fact, the LED display company adopts the strategy of advertising screen change. The original intention is to bring the advertising business through the customer to achieve the purpose of quickly selling the display. This return on investment may be slower, but there is still a good chance.

A staff member who has been engaged in LED outdoor advertising screens for a long time said that many outdoor displays are in an idle state due to various reasons.

It is understood that LED display companies including Lehman Optoelectronics, Lianjian Optoelectronics, Ai Bison Optoelectronics, and Chau Ming Technology have set up LED display outdoor advertising business. Whether LED outdoor display advertising industry can pass the outdoor media is still unknown.

Previously, Dr. Zhang Xiaofei, CEO of Gaogong LED, said in an interview: “Where the location is good, the advertising company should not take the initiative to replace the advertisement for you. The position deviation will change for you. And generally they will do the chain. All are batch replacements, and it is difficult to support them in terms of funds. If the location is too bad, the advertisements will not be sold, and the risks will follow."

The reporter learned that Lianjian Optoelectronics' revenue in 2012 was 537,543,610.28 yuan, a slight increase of 4.96% over the previous year; the shareholder's profit attributable to listed companies was 38,530,221.84 yuan, a sharp drop of 36.20%. During the reporting period, the company's net profit attributable to shareholders of listed companies decreased by 39.86% compared with the same period of last year.

The main reasons given by Lianjian Optoelectronics Financial Report are: 1. In 2012, the competition in the LED industry intensified, the growth rate of the company's sales revenue slowed down, and the gross profit margin decreased slightly compared with the same period of last year. 2. In 2012, the company was in the expansion period and opened up LED outdoor advertising. The new media business has a large initial investment, resulting in a significant increase in management fees and sales expenses in 2012 compared to the same period last year.

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