Silan Establishes Business Relationship with Daktronics and Barco to Expand International Market

According to the introduction from Liang Ma, a staff of Silan's Securities Department, Silan has sold high-end LED display chip to top international clients, Daktronics and Barco have already become its important large customers. Although there are not many orders at present, the margin of chip is far ahead.

Daktronics' LED displays ranks No. 1 in the whole world, it takes up over 80% of the U.S. market share, and more than 30% of the global market share. Its annual sale of LED display is more than 4 billion Yuan. However, Barco is a global leading provider of video and display solutions, and its LED display market share also is in the lead around the world.

Ma said that Silan's chip technology is same advanced as Nichia's and Cree's, even some indicators are more advanced than that of the later two, because of technical advantages, it can establish business relationship with the top international clients.

An analyst from Hua Chuang Securities said that Silan sells its chip at the price of about 2 cents per piece, while some other Chinese companies only sell their chips at pennies per piece. Relatively speaking, profit margin of Silan's LED chips is higher. "It is mainly because Silan has been committed to the semiconductor research, with superior craftsmanship and dust-free environment, to improve the quality of the chip." He explained.

In this regard, the industry believes that the penetration of display in China has been more than 90%, not much room for future growth, LED display chip manufacturers have begun to develop overseas markets through either OEM or expanding foreign channels, increasing the LED display market share.

Financial Results for the first half of 2013 Silan revealed shows that its total revenue is 740 million Yuan, a growth of 20.05 percent over the same period in 2012; its operating profit is 17.04 million Yuan, an increase of 169.33% over the same period in 2012; its total profit amounts to 38.1 million Yuan, an increase of 190.01 percent over the same period in 2012.

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