From the perspective of the whole industry, our view is that on the one hand, the entire industrial chain is shifting to the domestic market. On the other hand, the big leader has already been formed. The entire upstream and downstream industrial chain is holding up each other and forming an industrial chain. Investors have always felt that some domestic companies have always been third-tier companies, and their incomes are much lower, but the difference in application and price is in fact. These companies are already globally capable companies.

At present, it accounts for about 50% of the total LED chip production capacity in China, and this proportion will further increase in the future. Two large independent supply camps have been formed. In fact, two problems are faced. One is that large outdoor lighting manufacturers need to find downstream channels to sell their chips, so that they need to cooperate with the packaging factory. In order to ensure the leading edge of packaging technology, the packaging factory must cooperate with large outdoor lighting manufacturers to keep up with the future development trend of the chip. So you will find that Sanan has cooperated with the Sunshine and the Sunshine in the first half of this year. This trend is actually very obvious. From the perspective of the entire chip company share, the concentration of the entire industry is constantly improving. The domestic industrial chain is also constantly shifting to the domestic market. If the chip and package data are analyzed, the output value of the packaging factory increased by more than 20% in the first half of this year, but the chip factory did not grow. This share was robbed by mainland enterprises.

In addition to the formation of the entire industry chain, the entire upstream industry pattern continues to improve, and is constantly a sapphire, or a chip, chip links like Sanan, in fact, cost and technical advantages, many companies can not compare. In the coming year, it is not that all companies' profitability is improving, but that SMEs will be accelerated to integrate. Looking forward to next year, everyone should look back at the upstream companies.

In terms of the choice of the entire industry chain, in fact, the packaging enterprise is benefiting this year, because this year, in addition to the launch of the entire LED lighting market, the entire backlight industry chain has been transferred from South Korea and enterprises. Up to now, in fact, the capacity of many packaging factories has been expanded, and the production capacity has not been hit, so we feel that the profitability of this piece is not sustainable. Next year, I will go back and look at the entire chip industry, because now that I have fallen one, there are three companies in China, and there will be more companies next year. For the downstream enterprises, we feel that the downstream enterprises do not have any big investment value. On the one hand, the lighting enterprises' capital advantages, production capacity advantages and brand advantages cannot be compared with traditional lighting companies, but they are now faced by traditional lighting companies. The problem is that after the whole outdoor lighting fixtures market, all traditional lighting companies will face the problem of large collective asset impairment this year or next year.