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On the last day of January 2018, the A-share market faced a "cold wind." Companies like Zhangzidao saw sharp declines, LeTV reported a loss of 11.6 billion yuan, and the petrochemical sector also suffered significant losses. While investors had become more prepared for such surprises compared to 2018, it was encouraging to see that many LED-listed companies were showing strong performance growth, providing a bright spot in what felt like a "cold winter."
In fact, not only were listed LED companies performing well, but many non-listed firms also achieved impressive results. Despite the fierce competition, they managed to survive and even thrive, proving that resilience and innovation can lead to success.
Shenzhen Yitong Automation Equipment Co., Ltd. (referred to as "Yitong Automation") is one such company. Since its establishment in 2007, Yitong has focused on developing high-speed LED placement machines, display placement machines, multi-functional and automatic placement equipment. Its products are known for their industry-leading capacity and stability.
2017 was a breakthrough year for Yitong Automation. The company experienced rapid growth in revenue, with an increase of over 30% compared to 2016. At the same time, its gross profit margin also improved. In terms of product innovation, Yitong completely transformed the LED patch industry, becoming a true "sMD king" in the field. Additionally, the company gained recognition from major domestic lighting manufacturers, including several first-tier listed companies.
**Staying Committed to Innovation and Optimization**
Looking back at 2017, the LED industry continued to face supply-demand imbalances, with many companies struggling with shortages. As a lighting equipment provider, Yitong Automation also experienced supply challenges, particularly with domestic equipment.
Yu Yaoguo, General Manager of Yitong Automation, said, “To meet growing demand, we significantly increased R&D investment in 2017. We launched new models such as HT-F7, HT-T7, HT-E8T/E6T, and HT-E5, tailored for different customer needs. These models offer substantial improvements in productivity compared to existing industry equipment and allow for custom specifications to meet flexible application requirements.â€
The company’s innovative approach is evident in every piece of equipment it produces. From speed optimization to quality enhancement, each product reflects the dedication of Yitong's R&D team. Their SMT equipment now meets high standards in speed, precision, durability, and efficiency, while also offering flexibility and customization.
“After our innovations, the number of orders we received increased significantly,†Yu said. “Companies like Mulinsen, Sanxiong Aurora, Dehao Runda, and Tyson have adopted our equipment and praised it highly.â€
**Challenging Foreign Equipment and Moving Toward Intelligent Manufacturing**
As China continues to grow as a global manufacturing hub, the domestic LED industry is evolving rapidly. While foreign equipment once dominated the market due to perceived reliability, Yitong Automation has changed the landscape with its self-developed high-speed, fully automated LED placement machines.
According to industry experts, Yitong’s equipment uses components comparable to those of foreign manufacturers, with stricter quality control and no compromise on performance. Moreover, as a local manufacturer, Yitong offers faster response times and better technical support.
“Technologically, we provide localized customization, which is highly targeted and improves both production efficiency and quality for our clients,†Yu explained. “From a cost perspective, China’s developed manufacturing base and mature supply chain give us a significant advantage in cost control.â€
With the rise of the Internet of Things, the future of LED placement equipment lies in speed, precision, multi-functionality, and intelligence. Yitong Automation is committed to developing the most advanced, efficient, and intelligent LED placement machines.
“We aim to not only cover the entire domestic market but also expand globally,†Yu added. “Our goal is to create value for society and improve people’s lives through innovation.â€
Currently, 30% of Yitong Automation’s sales come from international markets, with products exported to South Korea, India, the U.S., Egypt, Vietnam, and other regions.
**Strong Market Potential and Open Transformation Model**
According to data from the High-tech Research Institute’s LED Research Institute (GGII), China’s LED lighting output reached 296.9 billion yuan in 2017, up 21% year-on-year. Globally, China accounted for 55% of the market. In particular, the LED automotive lighting market in China reached 24.5 billion yuan, a 26% increase.
Given this strong market outlook, 2018 presents great opportunities for Yitong Automation. “We will seize these opportunities by continuously improving our innovation and manufacturing capabilities,†Yu concluded. “We will carry out full-scale technological, material, and production transformations, expand our production capacity, strengthen our overseas sales network, and enhance our informatization level. In the future, we will move toward a new production model and management system to capture global market value.â€