Ronda stands out as the sole vertically integrated plant within the LED industry, offering everything from upstream die production to finished products and comprehensive solutions. Chairman Su Fengzheng emphasized that maintaining profitability amidst declining prices remains a significant challenge for the industry. However, Ronda has been pioneering new markets by leveraging innovations in areas like the Internet of Things, automotive lighting, and sensing technologies.
Despite the intense global competition and shrinking profit margins in LED manufacturing, Su Fengzheng explained that Chinese mainland firms have successfully broken through patent barriers, allowing them to expand into overseas markets. This shift has prompted many LED manufacturers to adapt their product lines to avoid excessive price wars. In response to the annual decline in lighting prices, Ronda has strategically reduced its reliance on traditional LED bulbs, focusing instead on high-margin products such as flat-panel lights, human-centric lighting, and smart lighting systems integrated with indoor positioning technologies.
Su Fengzheng highlighted that beyond cost reductions achieved through vertical integration, Ronda adds substantial value by offering complete solutions. For instance, their smart lighting systems equipped with positioning capabilities not only offer location tracking but also collaborate with software partners to deliver cloud-based big data services. These efforts enhance the overall functionality and perceived value of their offerings. Currently, they are working closely with major retailers to pilot these integrated systems and refine their approach to smart lighting paired with advanced analytics.
The company’s new operational strategy aims to boost profitability by shifting focus towards integrated products and services. By providing tailored solutions, Ronda can cater to diverse client needs, including branded products under their own label, like Wellypower, which helps penetrate emerging markets and build brand recognition. Additionally, through strategic alliances across industries, they aim to capture untapped opportunities within the IoT sector.
This transformation is expected to yield results over time. While traditional backlighting and lighting segments will likely continue to dominate revenue this year—backlighting accounting for around 55-60%, and lighting exceeding 30%—other areas such as vehicle lighting and infrared sensing are anticipated to contribute significantly more next year. Specifically, Su Fengzheng predicts these newer ventures could achieve double-digit contributions soon.
Currently, Ronda holds a 10% share of the global TV and display backlight market and enjoys a 20% stake in notebook backlighting. Leveraging partnerships with AUO and BenQ groups ensures stability in core markets while focusing on higher-margin offerings like value-added lighting solutions to differentiate from competitors on the mainland. Emerging businesses represent key growth drivers moving forward, particularly applications in high-speed rail and general after-market sales, where initial certifications are underway.
Looking ahead, Su Fengzheng envisions substantial growth potential in autonomous driving and vehicle networking sectors. As vehicles become increasingly digitalized, demand for reliable sensors and electronic components will rise exponentially. Although entry into automotive electronics carries risks related to recalls or warranty claims, stringent safety standards act as a natural barrier against low-cost competition, highlighting Ronda's competitive edge.
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