[Yearly Meeting] CITIC Hua: Large-scale, healthy cash flow enhances overall competitiveness

[Text / high-tech LED Xu Chaopeng] With the increasing price of LED products, enterprises are increasingly demanding upstream manufacturers. In order to transfer cost pressure, everyone has proposed more cost control and quality control for upstream manufacturers. Strict requirements.

"Since this year, CITIC Group has successively worked out plans for a strong attack on LED circuit boards. The double-sided LED low-power power supply board has reached 200 yuan/square meter. What we have to do is to reduce the cost of a large number of LED power supply manufacturers. In order to enhance their own competitiveness, we grow together with our customers.” Ding Huisheng, executive director of CITIC Group, told reporters.

At present, CITIC Group uses aluminum substrates and double panels as its main products. Among them, the double panels, due to their large equipment investment and high threshold, have already become the core products of CITIC Hua. Through the advantages of large-scale manufacturing, they can cost-effectively in many industries. Reach the forefront.

"Based on the huge production capacity of CITIC Group, we can achieve a large number of purchases in raw materials. For example, we can purchase 300,000 pieces of bulk materials in one month, which is basically the purchase amount of many small and medium-sized enterprises in one year." Ding will ring.

It is understood that CITIC Group currently has production bases in Shenzhen, Huizhou and Jiangxi. Among them, Shenzhen is responsible for PCB Allegro proofing, Huizhou is mainly for small batch production, and Jiangxi Park is responsible for mass production.

In November, the second phase of the CITIC Group's Huizhou Daya Bay plant has begun to be renovated. It will purchase the industry's top equipment and enter the multi- and high-precision PCB field, and all production lines will be automated.

“In 2015, CITIC Hua’s annual sales target has been basically completed so far, which is mainly due to the e-commerce model launched at the beginning of this year. It is widely favored by customers and even achieves the effect of a magnitude 10 earthquake in the industry.” Ding Hui The voice is shaped.

After entering this year, CITIC China keeps up with the market trend, implements a new change in the marketing model, and vigorously promotes the e-commerce model. The entire price is 30% cheaper than the original traditional sales price, which greatly enhances the overall competitiveness of the company.

When it comes to price wars, Ding will also say that "LED has undergone development over the past few years. From the upstream to the downstream, it is basically overcapacity. In order to survive, the price war between manufacturers is inevitable, but how to grasp the red line of product quality. Is the key to survival in the next wave of shuffling in the industry!"

“All in all, LED lighting, as a new generation of revolutionary technology applications, has many characteristics such as energy saving, environmental protection and high efficiency. Especially in today's environmental pollution and other factors, the LED industry has undoubtedly become the focus of the country and society. Inevitably, various support and encouragement mechanisms will be introduced. Under this trend, our CITIC Group will complete the enterprise model with the PCB as the core and integrate the Lichuang Component Mall, the Steel Network Division and the sample SMT to gradually improve the entire electronics. The industry chain supporting the industry to create the strongest manufacturing enterprise." Ding Huixiang finally mentioned.

On December 11th-12th, at the 2015 High-tech LED Annual Meeting held at the Du Fu Hall on the fifth floor of the Shenzhen Convention and Exhibition Center, CITIC Hua will discuss with the guests, so stay tuned!

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