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In 2014, the LED lighting feast is truly a curtain! Corresponding to the strong growth of the market, LED manufacturers will usher in a real golden period of development. However, in the new competitive situation, there are not many time left for enterprises to arrange for troops. The second half of this year is crucial for enterprises. Especially for packaging enterprises that are in the middle of the industrial chain and in a relatively serious situation, how to seize the favorable opportunity of the production market, quickly improve their competitive strength, and quickly occupy a favorable position for future development? In addition to technically keeping up with the trend of industrial development, actively complementing each other and strengthening the alliance through various channels, and actively creating a vertically integrated supply chain is undoubtedly a lot of packaging manufacturers are now practicing. In addition, in the expansion of its own business field, many packaging companies are also actively developing new market segments in order to find new profit growth points. The speed of demand for lighting in the battlefield is higher than expected. In order to grab the position, it will occupy a favorable position in the future competition. The LED industry is experiencing the most dramatic mergers and acquisitions, and the packaging is more prominent. For the strength packaging enterprises in the middle of the industrial chain, if they can develop synergies through the development strategy of industrial chain integration, realize scale benefits, and actively cut into the terminal market, it is undoubtedly perfect to improve profit margins. But the way to the upper reaches of the high-end atmosphere is always so rugged and difficult. For example, Guoxing Optoelectronics Co., Ltd., a leading domestic packaging company, has launched a vertical integration development strategy in 2010 and officially entered the upstream. However, until the end of 2013, 10 MOCVD equipments that had been installed and commissioned and put into production contributed sales of only 2.89 million yuan to Guoxing Optoelectronics, accounting for only 0.26 of the total revenue. Compared with professional chip manufacturers, they entered the upstream market. The road can be described as a long way to go. Of course, the way the enterprise extends in the industrial chain is never fixed. In the era of competition, the merger of large and small enterprises, strong mergers and acquisitions, or strong alliances can be said to be reflected in the LED packaging. Active cooperation with upstream manufacturers to obtain sufficient and cost-effective chips while ensuring sufficient and stable supply is undoubtedly one of the ways for midstream packaging companies to enhance their competitiveness. Taiwan's packaging manufacturer Yiguang had already invested in Jingyuan Optoelectronics in 2007, maintaining its competitiveness in the chip segment. Yiguang Chairman Ye Yufu also served as the vice chairman of Jingyuan Optoelectronics. Recently, Mulinsen also signed a "Strategic Cooperation Agreement" with Aoyang Shunchang. The agreement focuses on the continuous procurement of LED chips of not less than 400 million yuan from Huai'an Optoelectronics, a subsidiary of Aoyang Shunchang Holdings, within two years. Hongli Optoelectronics Co., Ltd., a listed packaging company listed in recent years, announced on June 25, 2014 that it signed a Strategic Cooperation Agreement with Sanan Optoelectronics Co., Ltd. The agreement stipulated that the strategic cooperation period is three years. In the first year of the agreement period, the company purchased LED chips from Sanan Optoelectronics, amounting to about 280 million yuan. Listed company Ruifeng Optoelectronics is no exception. Recently, a press conference was held to team up with Bridgelux in the United States to build a downstream lighting brand, Prefund. It is understood that the series products of Prefund will be exclusively sold by Ruifeng Optoelectronics in mainland China. In addition to actively fighting for the upstream in the value chain, midstream packaging companies may be a relatively easy way to continuously strengthen their sphere of influence in the middle reaches, or extend downstream and close to the terminal market. In 2014, LED lighting and backlight demand continued to look prosperous. The capacity utilization rate of packaging enterprises was mostly above 90, and it was nearly full. The release could not keep up with the rhythm of market demand. Enterprises with packaging scales that were winning by scale were seeking to expand. Production plan. Hongli Optoelectronics Co., Ltd., which has a capacity expansion plan, is also strengthening its position in the packaging chain. Hongli Optoelectronics recently purchased through the issuance of shares and payment of cash in terms of production technology, product structure and sales channels. With a strong complementary space, Smect, which has rich experience and technical reserves in the field of lighting white light and EMCLED, has a total of 100 shares, and the transaction consideration is 180 million yuan.