On 31^st of March 2021, Leyard interpreted the company's 2020 annual report, introduced the company's future plans and strategies when receiving institutional research. It is worth noting that Huawei, Alibaba and other companies also participated in the research activities of Leyard.

Interpretation of 2020 Annual Report

Nannan Li, director, vice president and board secretary of Leyard Group interpreted the 2020 annual report. In 2020, Leyard realized operating income of 6.634 billion RMB, net profit after deducting goodwill of 330 million RMB, operating cash flow of 1.111 billion RMB, a year-on-year increase of 21.64% and a steady increase in net value.

In 2020, Leyard Smart Display's revenue is 5.186 billion RMB, accounting for more than 78% of revenue. Although the proportion of display business revenue has fluctuated in the past 10 years, the company has always maintained the technology and product advantages of the display business. The display product revenue has expanded from 370 million RMB in 2010 to 6.444 billion RMB in 2019 with an increase of 16 times. It has ranked No. 1 in the global market share for four consecutive years.

Since 2011, Leyard began to expand overseas markets, from setting up overseas teams in China to setting up overseas branches, establishing subsidiaries through joint ventures with partners. The company acquired Planar System in the United States at the end of 2015. The overseas market layout has basically been completed. Overseas display revenue has expanded from 60 million to 2.7 billion RMB. Overseas display revenue accounted for more than 40% in 2017.

At the same time, the company adopts a business model combining direct sales and channels according to different customer market characteristics. In 5 years, the scale of channel revenue has doubled and the proportion of revenue has stabilized at 40%.

In 2012, the demand for small pitch market start, the company is providing different display solutions according to the different needs of industry customers, exploring customer needs industry by industry and continuing to segment industry customers. At present, the company divides the domestic customer industry into 22 major industries and 60 sub-sectors, and incorporates the "industry market share" indicator into the sales assessment system.

After mass production of Micro LED, the company proposed to use 2K resolution as the display unit to completely standardize the product. While improving production efficiency, it also facilitates manufacturing and quality control which is more conducive to deepening customers' understanding of the product and reducing market promotion difficulty.

Due to the increasing market demand for LED display products, the company will continue to expand its production capacity to meet the new industry cycle. At present, the company's LED display production capacity is mainly concentrated in four major production bases: Beijing, Southern Headquarters, Hunan and Slovakia.

It is worth mentioning that since the Micro LED mass production base was officially put into production, the products have been well recognized with saturation orders. Up to now, Micro LED orders have exceeded 100 million RMB. In 2020, Micro LED commercial display products have generated a revenue of 30 million RMB. Due to strong market demand, after negotiation with its partner Taiwan Epistar, it was decided to achieve 800kk/month production capacity 7 months in advance to the end of May 2021.

Leyard Development Strategy in 2021

Jun Ji, chairman of Leyard Group introduced the group's strategic goals in R&D and innovation, calling them "eating in the bowl", "looking at the pot" and "planting in the ground."

"Eating from the bowl": Focus on the display business in-depth, continue to consolidate and improve the leading position of LED small-pitch, conventional LED display and Micro LED display products in terms of technology and cost-effectiveness.

"Looking at what's in the pot": Achieve a comprehensive upgrade of Mini backlight, movie screens, home high-definition TVs and conference systems to accelerate continuous breakthroughs in ASIC chips and massive transfer technology.

"Planting in the ground": In the future, we will in-depth research on cutting-edge technologies such as COG, MIP, Micro LED (consumer applications), NPQD LED and the incubation of new display products.

In terms of marketing strategy, Leyard created a new era of full application of Micro LED display, comprehensively promoted video conferencing system (conference all-in-one machine), courageously be a leading enterprise and provide high-quality products (multi-brand), industry applications, regional markets and large enterprises cooperate to increase market share.

In terms of overseas development strategy, in order to meet the needs of the United States, Europe, Japan, South Korea and other international markets and to respond to the Sino-US trade war, Leyard doubled the production capacity of its plant in Slovakia. In addition, the international team is promoting the company's full product category (Micro LED display series, small pitch, conference all-in-one, film shooting screen, transparent screen etc.). The initial results have been achieved and the prospects are optimistic.

Leyard's extended business includes VR experience business, night travel economy and cultural tourism. In view of the current situation of the VR business, the company has made corresponding development plans which include three specific directions. The first is to expand the domestic hardware sales market, the second is to implement VR/AR industry solutions and the last is to provide digital one-stop services.

At the same time, in response to the economic development of night travel, Leyard continued to select high-quality projects to stabilize its business scale, regain high-end commercial lighting projects and indoor lighting projects, transform to the improvement of blocks and scenic spots and cultural tourism, explore a smart combination of business models.

In addition, the company acquired Lifeng Culture in 2015, the scale of its cultural tourism business has increased year by year, reaching a maximum of 833 million RMB. As the policy improves, cultural tourism will gradually return to the growth track and the company will continue to promote the growth of this business.

MiniLED backlight technology research and development direction

Talking about the MiniLED backlight product plan of Lijing Microelectronics, Liyuan Huang, general manager of Lijing Microelectronics said that in 2021, Lijing will complete the design of the product development line in Q1-Q2, Q3 will focus on the certification of backlight products and Q4 will reach the mass production.

It is reported that Lijing Microelectronics was registered in Liangxi District on March 26, 2020, after the strategic investment agreement signed by Leyard Group, Taiwan Jingdian Group and Wuxi Government in December 2019. The construction began on October 29, 2020. The production mainly carries out the research and development, production and sales of Micro LED self-luminous products and MiniLED backlight products.

Lijing aims to achieve COB and COG products as low as P0.4 and below through optimized and improved mass transfer technology in order to further develop higher density, better picture quality, and Micro LED in AR/VR, mobile phones, tablets, etc.

Since Lijing was officially put into production, the products have been recognized by the market and orders are full. The products is in short supply condition. The current production schedule of Lijing has reached June, exceeding the production capacity plan expectations. Therefore, it was decided to complete the first-phase expansion 7 months ahead of schedule and achieve 800kk/month production capacity by the end of May 2021.

In addition, the MiniLED backlight products that Lijing reserves are mainly MiniBLU products within 27 inches which are concentrated in two categories, one is high-definition monitors for games and the other is professional content editing and display products.

Display sales strategy for 2021

In the display sector, Leyard has always stick to "focus on display and steady development", achieving the goal of "four full coverage (industry, region, product and solution)", and coordinated development with the lighting sector, VR sector and cultural tourism sector. The development layout of the industrial bases in Beijing, Southern Headquarters, Wuxi and Changsha has a monthly production capacity of over 10,000KK.

Talking about the planning and layout of display products, Bo Yuan, the board director and CEO of Leyard Group said that the company's conventional product series include small pitch TX series, channel MINIBOX series, conference systems, Micro LED, creative rental series include special shapes/spheres, creative products, carbon fiber small-pitch rental products, indoor and outdoor grid transparent series, full waterproof outdoor screen series.

In terms of sales management strategy, Leyard implemented a comprehensive digital transformation of sales, improved the visualization of marketing cloud, CRM, call center and big data operations; adopted regional, industry, and key account management to achieve performance evaluation overlay calculation methods; played the role of Leyard College, strengthen the training of sales personnel; expand the sales team, introduce excellent talents and partners and unite all the forces that can be united.

Micro LED technology and star product layout

According to Changjun Lu, director and vice president of Leyard Group, the company has a layout in the key technology chain of Micro LED display.

Saphlux, a subsidiary of the company, established a Micro LED Joint Laboratory in 2018 dedicated to the development of Micro LED substrate/epitaxial and chip manufacturing processes; established a Micro LED Research Institute with Taiwan Jingdian and Lijing Microelectronics to focus on the massive transfer and testing research on a series of manufacturing processes such as rework, surface packaging, testing and sorting, drive control.

In terms of Micro LED mass transfer and die bonding technology, the company's laser transfer solution has been introduced into mass production with a mass transfer efficiency of 1,000 pcs/s and a transfer yield rate of 98.9%. Other transfer solutions have been developed and verified simultaneously.

In terms of Micro LED surface packaging technology, the company pioneered IS packaging structure, optimized packaging technology, improved edge effects and greatly improved image quality.

In addition, the company also deploys quantum dot Micro LED, namely NPQD Micro LED technology, LED constant current drive chip technology and ASIC chip technology.

The company's star products in 2020 include Micro LED curved screens (TXC series), general small pitch (MG series), creative displays (transparent screen series) and channel products (Mini Box series). (Organized by LEDinside Mia)