Ronda stands as the sole vertically integrated facility in the LED industry, offering everything from upstream die production to finished products and comprehensive solutions. According to Chairman Su Fengzheng, maintaining profitability amidst declining prices remains a significant challenge for the sector. The company has tackled this by developing new applications like IoT, automotive lighting, and sensing to create fresh market opportunities.
Su Fengzheng emphasized that even as the global LED industry experiences intense competition and razor-thin margins, Chinese firms have successfully navigated patent barriers to access overseas markets. This shift has prompted LED manufacturers to adjust their product lines to circumvent direct price wars. In response to plummeting lighting prices, Ronda has significantly reduced its reliance on LED bulbs, focusing instead on higher-value products like flat-panel lights, human-centric lighting, and smart lighting systems integrated with indoor positioning.
Beyond cost reduction through full-scale manufacturing, Ronda enhances its offerings by delivering integrated solutions. For instance, smart lighting combined with positioning systems incorporates both location functionalities and collaboration with software companies to offer cloud-based big data services. These efforts aim to enrich system capabilities and add value, with current trials involving large retailers to integrate these systems into smart lighting solutions powered by big data.
Su Fengzheng highlighted that, given shrinking profit margins in manufacturing, Ronda is bolstering its margins by expanding into integrated product offerings and services. By teaming up with service providers, the company can offer tailored solutions to clients, including proprietary brands like Wellypower that help capture market share and boost brand recognition. Additionally, through cross-sector alliances, Ronda aims to penetrate the burgeoning IoT market to seize new business prospects.
The new operational model is yielding positive results for Ronda, although the transition requires time to fully manifest. This year, it’s anticipated that two major product lines—backlighting and lighting—will continue to dominate revenue shares. Backlighting revenue is projected at 55-60%, while lighting will exceed 30%, with LED bulbs accounting for less than 10%. The strategic shift in operations is gradual, with expectations that vehicle and infrared (IR) sensing businesses will contribute double-digit figures next year. Existing backlighting and lighting segments will continue to evolve, capitalizing on niche opportunities.
Currently, Ronda holds a 10% market share in TV and display backlighting and 20% in notebook backlighting. Leveraging partnerships with AUO and BenQ to stabilize core operations and retain key customers, Ronda is shifting focus away from traditional bulbs toward high-value, high-barrier products to sidestep competition from mainland rivals. Emerging areas like high-speed rail applications and the general aftermarket represent significant growth opportunities, with pre-installed market certifications underway to ensure future profitability.
Looking ahead, Su Fengzheng envisions substantial business potential in autonomous driving and connected vehicles. As demand for transmission and sensing technologies grows, Ronda is poised to capitalize on automotive electronics and digital transformation. Although risks exist, such as recalls or compensation claims, the stringent safety standards in this space create a high barrier to entry, setting Ronda apart from competitors. This quality-driven approach is expected to help Ronda break free from mainland factory competition.
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