Qing Beijun, CFO of Wanrun Technology: Integrating downstream industries through mergers and acquisitions

First, let me briefly introduce Wanrun Technology. Wanrun Technology was listed in 2012. Our main business is currently focused on LED packaging, and then we mainly produce lighting products in the downstream area. Over the past few years, the proportion of lighting products has gradually increased, but the market for lighting is mainly export-oriented. More than 70% of lighting products are exported, and our light sources are for the domestic market. In the market, everyone usually knows that Wanrun Technology is still a packaging manufacturer, and they don’t know much about our lighting.

From the perspective of our development strategy of Wanrun Technology in recent years, the company has been based on its old business in recent years, which is our packaging. Based on our understanding of packaging, we will gradually extend to the downstream. Judging from our recent merger and acquisition, we are also the top management of the entire company. Our overall thinking is still mainly extended to the downstream. The merger and acquisition mainly focuses on the integration of downstream industries. On the one hand, we want to expand our market segments.

Second, we can achieve the digestion of our packaging production capacity through our downstream extension. Gradually expand our downstream market. We think that the company's future growth will mainly be in the downstream area. This is the future trend of the company.

But now the domestic market is the lighting market, which has been expanding in recent years and has made some achievements. The company's products are mainly positioned in the mid-to-high end. At present, the price of our products may be relatively high on the market. The products are mainly used in some commercial lighting and municipal engineering. In recent years, we have done a lot in the commercial lighting field. There are relatively successful cases of our commercial lighting in places such as Beijing, Chongqing, Shenzhen and other places. Shenzhen has already done many projects in the municipal area, including Nanshan and Guangming. For example, in Hubei, we also won a large project a few days ago. Currently, lighting is still based on our mid-to-high-end positioning. The company will not change its positioning, because in the market, we currently see that LED as a whole is still a bit confusing in the eyes of mass consumers, and everyone still does not have a deep understanding of this product. There are products with very low prices on the market, and some with very high prices. It is difficult for ordinary people and merchants to tell whether a product is good or bad. Therefore, from the current perspective of the company, we are still positioning ourselves in the business sector. We will also consider appropriate opportunities in the downstream market after market development.