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main products
In terms of LEDs, Nichia has vertically integrated the entire industrial chain. And only the LED light source device is sold externally, and the LED chip is not sold. With its patent advantages, Nichia continues to grow and develop in the LED field, occupying a very large market share in the global high-end LED display and LED backlight field.
Since LED is the main business of Nichia, the main revenue comes from the Optical Semiconductor Division. In 2010-2011, over 70% of revenue came from the Optical Semiconductor Division.
At present, the company's LED packaging products are mainly Lamp and SMD, COB also has a small amount of production, the total number of product types and models of the three package types is 165. Among them, the total number of white light and warm white models is 112, accounting for 68%. LED application products mainly include lighting, display, automotive, LCD backlight and UV LED. Among them, the display and backlight business is the main source of income of the Optical Semiconductor Division, and the lighting aspect has yet to be developed.
In terms of laser diodes, the company currently has a variety of product models such as single-mode laser diodes and multi-mode laser diodes. In the chemical product division, phosphors are the main products. In addition to LED phosphors, there are five general phosphors, namely CRT phosphors, lamp phosphors, phosphors for PDP, X-ray phosphors and long afterglow. Phosphors are used in cathode ray tubes, fluorescent lamps, PDPs, X-ray intensifying screens and glow lighting appliances. 
As can be seen from Chart 2, in addition to the impact of the 2009 financial crisis and the impact of the LED industry boom in 2010, Nichia's overall operating income is growing steadily. Among them, compared with 2010, Nichia's revenue growth in 2011 and the first half of 2012 slowed down significantly, mainly due to weak market demand and reduced shipments, as well as fierce competition leading to a decline in sales prices.
In terms of regional revenue distribution, as shown in Chart 3 below, the company's revenue is mainly from Japan and other parts of Asia. Before 2009, Nichia's revenue share in Japan continued to remain above 70%. However, after the financial crisis, the proportion of revenue in Japan continued to decline, and the region in Asia (excluding Japan) continued to increase accordingly. In the past two years, the company's revenue share in Japan has fallen to 51%, while revenue in other parts of Asia has increased to more than 30%. Among them, in the first half of 2011 and the first half of 2012, Japan’s revenue in China accounted for 19.3% and 14.1% respectively. In the past, China’s revenue accounted for less than 10%. 
As can be seen from Chart 4 above, the overall gross profit of the company has been declining in recent years, and the overall gross profit margin is in a downward trend, mainly due to weak market demand and increased competition in the past two years. In 2011, the company's gross profit decreased by 17.1% year-on-year to 5.76 billion yuan, and the gross profit margin was 32.3%, down 8.6 percentage points year-on-year. In the first half of 2012, gross profit was only 2.31 billion yuan, a decrease of 51.1% year-on-year, and gross profit margin dropped by 27.2 percentage points to 25.7%.
technology R & D
As can be seen from Chart 5, Nichia's R&D expenses are very high in the past years. During the period of 2005-2011, the company's R&D expenses exceeded RMB 1 billion per year, and R&D expenses accounted for more than 8% of total revenue. 
future development
In the future, Nichia will pay more attention to the development of the lighting business. “Nichia's current business includes display, car and backlight business. These are our important businesses, but we believe that the future will be the lighting business,†said Fudai Tuoba, General Manager of Nichia Chemical China. If so.
Fudai Tuoyu once said that the company's goal in 2015 is to occupy 30% of the global LED lighting market. This aspect is based on Nichia's confidence in its technological advantages, and on the other hand, it is optimistic about the future global LED lighting market, especially China. Lighting market.
Fujitsu Takuya said that Nichia hopes that by 2015 China's market revenue will account for 50% of the company's total LED business revenue. In 2011 and the first half of 2012, Nichia Chemical's revenue in China accounted for 19.3% and 14.1%, respectively. Compared with the 50% revenue share, there is still much room for improvement.
Based on this, Nichia has stepped up its Chinese layout. In March 2012, Nichia Chemical established a branch office in Guangzhou. So far, the company has established a vertical sales network in Beijing, Shanghai, Guangzhou and Hong Kong. Nichia said that in the future, the company plans to set up a branch in the inland region of China to achieve a sales network system covering all of China. In terms of China's production base, Nichia Chemical's Shanghai Minjiang plant has started construction in 2012 and is expected to be mass-produced this year. 
[Source: Gaogong LED's "LED Research Review" magazine March issue GLII / Zhuyuan] Nichia was founded in 1956, is the world's first company to manufacture blue-green LEDs using nitride, with blue and YAG generation. White LED patent. The company is mainly divided into two business divisions: Optical Semiconductor Division and Chemical Products Division. The main products of the Optical Semiconductor Division are LED packaging, LED application products and laser diodes (LD). The main products of the Chemical Products Division are phosphors, battery materials, magnets and others.