The LED market is constantly evolving, with fierce competition and intense internal competition. Driven by both rapid technological iteration and upgrading consumer demand, the LED industry is accelerating its transformation towards high-end products. High-value-added areas such as Mini/micro LEDs, small-pitch displays, automotive LEDs, and LED lighting have become key battlegrounds for major manufacturers.
With its forward-looking strategic layout, Jinko Electronics has expanded its business in three major areas: automotive intelligent vision, high-end lighting, and new displays, successfully seizing the opportunities for industrial development and gaining an advantage in technological progress and market demand growth.
The recent government-introduced "trade-in" policy for home appliances has had a positive impact on the TV market, with significant growth in sales of Mini LED TVs from brands such as TCL, Hisense, and Xiaomi. According to the latest survey by TrendForce, China's trade-in subsidies for home appliances will boost sales of large-screen Mini LED TVs in 2024, driving brand shipments to 6.75 million units, a year-on-year increase of 65%. Benefiting from this, Jinko Electronics' TV backlight business achieved significant growth in the third quarter.
Jinko Electronics is also making forward-looking investments in high-margin areas such as smart automotive lighting, smart lighting, and plant lighting. As early as 2017, the company foresaw the transformation of China's automotive lighting industry and expanded its business into automotive intelligent vision systems. This move allowed the company to enjoy the dual benefits of automotive intelligence and the localization of the supply chain, while successfully avoiding fierce competition in the traditional lighting market.
In the emerging display market, Jinko Electronics is actively expanding its product applications, such as Mini LED automotive interactive displays. With the increasing demand for personalized automotive solutions, direct-view interactive LED displays are gaining popularity, further broadening Jinko Electronics' prospects. At the 2024 Self-Emitting Display Industry Seminar, I had the opportunity to exchange ideas with Dr. Zeng Zhaoming, Vice President of Jinko Electronics, discussing the company's latest advancements and future development plans in areas such as automotive interactive displays.
Dr. Zeng Zhaoming, Vice President of Jinko Electronics
Upgrading Automotive Display Technology to Create Diverse Product Solutions <br /> The wave of intelligentization and electrification in the automotive industry is rapidly driving innovation in automotive display technology. Automotive display technology is moving towards higher resolution, larger sizes, and more complex interactive functions. Emerging technologies such as Mini LED and Micro LED, due to their superior display performance, are gradually being applied to the automotive display field, and their future development prospects are broad.
Jinko Electronics' strategy in the automotive display field primarily focuses on two areas: central control screens and interactive screens. Currently, the central control screen market is dominated by LCD technology, while Micro LED technology is still in its early stages, mainly limited by cost and technological maturity. However, as the demand for high brightness and high contrast continues to increase in the future, Mini LED technology will play an even more crucial role.
Interactive screen, image source:
In the field of interactive displays, Jinko Electronics primarily serves the new energy vehicle market, providing personalized and visually appealing display solutions that can display not only dynamic patterns but also interactive information. However, the industry is currently facing regulatory restrictions, which limit the content that can be displayed on screens. Jinko Electronics believes that as regulations improve, the application of interactive displays will become more widespread.
Image source: Jinko Electronics
Currently, Jinko Electronics offers full-color, full-red, and white light interactive displays for the automotive interactive display field to meet customers' personalized needs. The company utilizes POB technology, focusing on automotive-grade certification, cost-effectiveness, adaptability, and design flexibility. For different application scenarios and customer requirements, Jinko Electronics provides diverse pitch solutions, such as P1.25, P1.5, P3, and P4.
Jinko Electronics stated that interactive display technology is currently in its early stages. Although there are not many interactive screens on the market at present, it is expected to have wider applications in the future as the technology advances and application scenarios expand.
With multiple advantages, the in-vehicle interactive display layout is "given wings".
Although in-vehicle interactive displays are still an emerging field, Jinko Electronics has been deeply involved in the research and development and production of flip-chip technology since 2006. It is one of the first companies in the domestic LED industry to achieve mass production of flip-chip LED light sources and has established a series of flip-chip LED technologies and related packaging technologies. This profound accumulation has provided a solid foundation for the company's development in this field.
Jinko Electronics' advanced flip-chip technology not only eliminates the need for wire bonding but also supports multi-chip and technology integration. Leveraging its deep expertise in flip-chip and flip-chip packaging technologies, the company has achieved a board yield exceeding 95% in the Mini LED COB field. Furthermore, its white light packaging and light conversion technology significantly improves the color gamut and color reproduction of Mini LED display products, optimizing the display effect. This synergistic development of technologies further solidifies Jinko Electronics' core competitiveness in Mini LED direct-view display products.
Furthermore, Jinko Electronics has invested heavily in R&D resources in the field of automotive direct-view interactive displays, focusing on improving contrast, light distribution, and light uniformity. Simultaneously, the company is also conducting research on secondary packaging technology to further enhance display performance. This R&D work not only improves product performance but also fuels Jinko Electronics' continued innovation in the field of automotive display technology.
Jinko Electronics has focused on the backlighting field since 2010, accumulating rich experience. Its successful entry into Mini LED backlighting technology is both a result of its deep technological accumulation and an inevitable result driven by market demand. The company's dual layout in the Mini LED backlighting and direct-view display fields enables it to occupy a favorable position in these two key markets, forming a two-pronged market strategy.
To enhance technological innovation and product upgrades, Jinko Electronics integrates LED technology with integrated circuits, sensors, software and algorithms, drivers and electronic control, optics, and the Internet of Things (IoT) to create "LED+" technologies and products with application advantages. Simultaneously, the company strengthens cooperation across the upstream and downstream supply chains, leveraging complementary strengths to achieve resource synergy and enhance the core competitiveness of its products.
In terms of automotive-grade certification and cooperation, Jinko Electronics' deep cultivation in the automotive OEM market has enabled its products to be widely used in vehicle lighting systems such as front combination lights, rear combination lights, and interior lights. The company has established cooperative relationships with more than 20 domestic OEMs, automotive brands, and Tier 1 suppliers, covering well-known automakers such as Geely, Li Auto, GAC, Changan, Great Wall, Wuling, and Chery, which has provided strong support for subsequent project acquisition and customer cooperation in the field of in-vehicle interactive displays.
Image source: Jinko Electronics
In terms of vertical integration of the industrial chain and intelligent manufacturing, Jinko Electronics has achieved full industrial chain coverage from LED chips to modules to complete lamps, providing one-stop solutions to meet diverse customer needs. At the same time, the company improves production efficiency and product quality through intelligent manufacturing and big data algorithms, giving it a speed and efficiency advantage in the R&D and production of Mini LED direct-view products.
In recent years, Jinko Electronics' performance has continued to grow steadily. Revenue reached RMB 1.388 billion, RMB 1.411 billion, and RMB 1.858 billion in 2021, 2022, and 2023, respectively, with RMB 843 million in the first five months of 2024. Net profit for the same periods was RMB 78 million, RMB 39.07 million, RMB 72.04 million, and RMB 32.17 million, respectively, providing solid financial support for the company's development in the automotive display field.
Promoting the integration and innovation of "LED+" technology and accelerating its transformation into a global high-tech enterprise . Jinko Electronics has three major business segments: automotive intelligent vision products (including intelligent headlights, automotive-grade LED devices and modules), high-end lighting products (including high-end lighting devices and high-end lighting modules), and new display products (mainly designed for backlight displays). Its forward-looking layout of in-vehicle interactive displays based on market demand is a key step in its transformation into a global high-tech enterprise.
To accelerate its transformation into a global high-tech enterprise, Jinko Electronics focuses on the systematic development of "LED+", driving intelligent transformation in fields such as automotive lighting, TV backlighting, and high-end lighting. In the automotive lighting field, the company integrates lighting, display, and sensing technologies to promote intelligent upgrades; in the Mini LED backlighting field, it combines display and interactive design to create intelligent platforms.
Furthermore, Jinko Electronics offers flexible product models based on customer capabilities: customers with technical integration capabilities can directly obtain display components, while customers with complex needs can obtain complete system solutions. This "modular + full system" strategy further enhances market competitiveness and reflects a profound understanding of future intelligent and diversified needs.
Jinko Electronics is leveraging its unique strengths in vertical integration to actively address the challenges it presents. Through its in-house surface mount technology (SMT) lines and design teams, the company has gradually earned customer trust in the module sector and expanded its business into automotive electronics, including cutting-edge technologies such as battery management systems (BMS) and autonomous driving control boards, thus enhancing its business diversity.
In terms of capacity expansion, Jinko Electronics will expand its automotive intelligent vision system product line and corresponding capacity based on its existing scale, and further expand its high-end lighting and new display business capacity in response to changes in market demand.
Jinko Electronics has planned to build a new automotive lighting factory in Nansha, having already acquired the land. Construction is scheduled to begin next year, with the Guangzhou base expected to be completed by the end of the year. The company has already secured orders from several major automakers, and with the rapid growth in orders, its production capacity is nearing saturation.
Looking ahead, Jinko Electronics is committed to achieving technological breakthroughs through innovation in the "LED+" field and in-depth exploration of high-growth potential areas. Simultaneously, the company plans to further deepen vertical integration of the industrial chain, improve lean manufacturing and intelligent production levels to adapt to market demands, expand production capacity, and drive the company's transformation into a global high-tech enterprise.
Riding the wave of the capital market, a new chapter of development begins . Just as people are in high spirits when they celebrate a major milestone, companies also radiate new vitality and momentum. For Jinko Electronics, November 8th was undoubtedly a day to celebrate. The company successfully listed on the Hong Kong Stock Exchange, achieving an oversubscription rate of 5678 times, breaking the record for oversubscription multiples of technology IPOs on the Hong Kong Stock Exchange and winning the title of "Oversubscription King" for this year's new listings!
This achievement demonstrates investors' confidence in Jinko Electronics' future development potential and provides the company with strong market support and financial security. The positive response from the capital market has boosted the morale of the Jinko Electronics team, laid the foundation for continuous innovation and business expansion, and propelled the company's significant growth in the three major areas of automotive intelligent vision, high-end lighting, and new displays.
Furthermore, Jinko Electronics' listing symbolizes a significant step towards becoming a global high-tech enterprise. With the support of the capital market, the company will occupy an increasingly important position in the global semiconductor industry. In the future, Jinko Electronics is expected to further consolidate and enhance its competitiveness in the global technology industry through continuous innovation and strategic planning.
