Absen: Reshaping the industry order with legal cutting and winning the future of the industry with righteous values

Recently, Li Xinhai officially took office as the general manager of Absen China Market. On October 10, at the strategic promotion meeting of "Reconstructing the Industry Order with Legal Cutting and Winning the Turnaround in the Chinese Market with Legal Values", Li Xinhai delivered a speech and elaborated on relevant thoughts on the current status of the industry, compliance operations and the development of the Chinese market. The following is the full text of the speech.

Dear colleagues and partners!

In today’s meeting, I will only say one thing: it’s time for this industry to part ways.

In the past two decades, China's LED display industry has completed a leap from scratch, from weak to strong, and we should be proud of it. But we must also admit the other side: the industry has been trapped in price involution for a long time, bad money drives out good money, and the more regular companies follow the rules, the more they suffer.

This is not the plight of one company, but the structural injustice of the entire industry.

Standing at the new starting point of 2027, based on in-depth insights into the current status of the industry, long-term accumulation of corporate development, and firm judgment on the future of the industry, Absen officially released the core strategy for the Chinese market——

Use legal red lines as the ultimate cut, fight illegal chaos with legal and genuine products, end the disorderly involution of the industry, and promote the return of the industry to the right path of legal operation, safe operation, and value operation.

01

Let me start with a bottom line: 3C is not a multiple-choice question, it is a legal question

I want to bring the discussion back to the most basic and most often ignored thing.

3C compulsory certification is the national legal bottom line for electronic products to enter the market and the entry threshold for the legal circulation of commercial displays. It is not a standard set by the brand itself, nor a slogan for industry self-discipline, but a market access condition written into the law and enforced by regulatory authorities.

Its legislative purpose is very clear: to ensure public fire safety, protect personal health, and safeguard social and public interests.

In other words, behind a 3C certificate, it is not just whether the product is qualified or not, but also the safety of thousands of ordinary people in a shopping mall, a venue, a campus, and a government hall.

The "Product Quality Law" clearly prohibits the production and sale of products that do not meet the standards for protecting human health and personal and property safety; the "Certification and Accreditation Regulations" stipulate that products included in the compulsory certification catalog may not be manufactured, sold, imported or used in other business activities without certification. Violators face administrative penalties, confiscation of illegal gains, fines, and in serious cases, criminal liability.

This is not a debate within the industry. This is a legal issue and a public safety issue.

02

A reality that must be faced head-on: there are only two types of products on the market

In the past ten years, as Absen has grown in scale, publicity, and internationalization, we have continued to awaken, continue to improve, and continue to adhere to the legal bottom line. We have long advocated honest operation, compliance operation, and safe operation, and constantly improved the product system and operation system with full-process standardization, legalization, and traceability.

Frankly speaking, we have been adhering to the right path, calling for norms, and practicing standards for many years. However, it is difficult for one company to completely reverse the industry chaos. The legal persistence in the past failed to overcome the illegal involution of the industry. This is a structural regret and injustice for the entire industry.

Today, I want to face the most straightforward and core contradiction in the industry:

There are only two types of products in the current market - one is legal brand complete machines, and the other is illegally circulated bulk screens.

Let me use an analogy that everyone can understand:

Bulk screens are the bulk wine of the display industry.

Bulk wine has no standards, no quality inspection, no traceability, and no safety guarantee. It is cheap but harmful to the body.

Bulk screens have no formal 3C certification, no legal qualifications to enter the market, no standardized quality control, and no safety guarantee. They are low-priced, but they hide huge safety and quality risks.

Bulk screens are the source of all chaos in the industry, the carrier of illegal low-price competition, the biggest hidden danger to public safety, and the fundamental crux of the long-term passive involution of formal enterprises.

03

A soul torture: Why do you abide by the law when you go to sea, but lose it when you return home?

Here, I would like to raise a question to the entire industry that deserves everyone’s deep thought and vigilance.

Mature markets such as Europe, the United States, and Japan have extremely strict standards for the entry of electronic products. The US FCC, UL safety certification, EU CE certification, and RoHS environmental certification are all red lines and each item is a rigid requirement. Non-standard, unlicensed, and potentially dangerous products are absolutely prohibited from entering the market. The cost of violation is extremely high. There is zero tolerance and no exceptions.

Why do we have to and are willing to strictly abide by every overseas regulation and standard when operating overseas? When we return to the domestic market, the most basic and bottom-line 3C access standards are difficult to implement?

Are China's urban spaces, public scenes, and people only equipped with inferior products that are unqualified, unprotected, and have safety hazards?

This is not a regional difference, it is a loss of industry standards, it is the connivance of the market's bottom line, and it is the distorted status quo of the industry that we must completely reverse.

04

Uncover the true face of bulk screens

The bulk screens circulating on the market are by no means simple "cheap products", but non-standard and inferior products with no standards, no quality, no safety, no lifespan, and high hidden dangers. Its harms are concrete and verifiable:

First, fire safety hazards are prominent. The circuit design is not standardized, the wires are not flame-retardant, the structure is not protected, and the circuits are exposed, which makes them extremely susceptible to insect bites and moisture short circuits. It has caused major safety accidents such as leakage and fire all year round. It is an invisible bomb lurking in urban business districts, venues, campuses, and government affairs scenes.

Second, health and environmental protection are not up to standard. Without formal electrical safety, structural safety and environmental protection testing, the material's flame retardancy level and harmful substance limits cannot be guaranteed. If it is placed in a crowded public scene for a long time, it will directly threaten personal safety and the public environment.

Third, the workmanship is rough and quality control is lacking. They are all assembled from simple modules with poor workmanship, poor sealing, and failed waterproofing. Outdoor scenes commonly suffer from water leakage, oxidation and corrosion, loose structures, and module detachment. There are no workmanship standards at all.

Fourth, the performance is extremely poor and the lifespan is extremely short. The chips are of inferior quality, the power supply is unstable, and the system is crude. After just a few months or one or two years of use, large-scale degradation occurs, color blocks flood, flickering black screens, and batch necrosis. The stability and reliability are completely substandard.

Fifth, destroy the city appearance and create electronic waste. Many large screens in cities are supposed to be landmark highlights that light up the night scene and display the image of the city. However, after a large number of bulk screens were put into use, they soon became uneven in brightness, mottled and damaged, and could not be used normally. The original urban landscape eventually became a stain on the city that lowered its appearance and affected its appearance.

Moreover, bulk screens are being phased out very quickly, and a large number of inferior products are quickly scrapped and iterated quickly, creating massive amounts of electronic waste, causing serious waste of resources and environmental pollution.

Regardless of the electrical performance, display effect, safety standards, service life, city appearance, environment, and social responsibility, bulk screens are outdated products that are backward in the industry, illegal and inferior, and urgently need to be eliminated.

05

There are only three root causes of the long-lasting chaos

First, asymmetry of market information. End customers only compare prices and do not distinguish between legal, safety and quality.

Second, some practitioners know that non-standard products are full of hidden dangers, but still follow the trend of low prices for short-term profits.

Third, the cost of industry violations is extremely low, while the cost of compliance is relatively high. Eventually, a deformed market pattern of illegal pursuit of profits and legal losses was formed.

Over the years, Absen has been fighting an unfair and misplaced competition:

We insist on legal complete machines, compliant entry into the market, and standard production, and bear safety costs, quality costs, and liability costs; our opponents rely on the illegal circulation of bulk screens, circumvent legal standards, cut off safety investments, and break through legal red lines in exchange for low-price advantages.

Legal compliance has become a burden for formal enterprises; non-standard speculation has become an advantage of chaotic products. This abnormal pattern must be completely ended in 2027.

06

Our confidence: a standard system that has been honed over ten years

In sharp contrast to the chaos of bulk screens with no standards, no bottom line, and no quality: As early as ten years ago, Absen took the lead in formulating eight major quality standards for the LED display industry.

This set of standards was initially just Absen’s corporate internal control standards for strict self-discipline and self-improvement. Because of its complete system, strict standards, and compliance with industry trends, it has been gradually imitated, followed, and learned by the entire industry, and has gradually been iteratively upgraded from corporate standards to industry-wide benchmarks.

What’s more worthy of confidence is that Absen’s full set of quality, process, safety, and environmental protection standards are fully aligned with the world’s highest standards, and have successfully passed stringent international certifications such as FCC, UL, CE, and RoHS. They have long been widely recognized by mature high-end markets such as Europe, the United States, and Japan, and can withstand the inspection of the world’s most stringent markets.

Many peers, customers, and investors have been curious: Why can Absen’s business quality, product quality, and anti-cyclical capabilities be able to lead and remain stable for a long time?

Today, I officially disclose the answer. This is the core secret of Absen's continuous leadership through industry cycles -

long-term adherence to the legal bottom line, long-term adherence to extreme standards, long-term rejection of inferior quality, and long-term requirements for itself with the highest global standards.

07

The ultimate binary segmentation: Reconstructing the rules of market competition

Facing 2027 and beyond, Absen will use the highest-dimensional cognition to complete the ultimate binary segmentation of the industry and completely reconstruct the rules of market competition.

First, the legal brand complete machine track. It has complete legal qualifications, formal 3C certification, standardized production, full process traceability, safety standards, controllable quality, long-term stability, and complies with national regulations and high-level industry standards. This is the only legal, the only safe, the only sustainable mainstream track.

Second, illegal bulk screen track. There is no legal qualification, no compliance certification, rough workmanship, numerous hidden dangers, short lifespan, damage to the city appearance, and there are safety and legal risks. This is a non-standard backward track that will eventually be cleared by regulation, eliminated by the market, and cleared by the industry.

This cutting is not a price cutting, not a parameter cutting, it is a legal cutting, a cutting between good and evil, a cutting between life and death.

One side is legality, safety, standards, quality, long-term, and responsibility; the other side is illegality, hidden dangers, roughness, inferior quality, short-term, and speculation.

The future market competition will no longer be an involution between brands, but a battle between legal and genuine products and illegal bulk screens, a battle for standards, a battle for quality, and a battle for responsibility.

08

The three core actions of 2027 will be implemented one by one

1. Cutting the minds of the whole people and breaking the information gap in the industry

For Party A, owners, project contractors and the bidding system, continue to popularize a core understanding:

Low-priced bulk screens are not cost-effective, they are illegal and non-standard, they are safety mines, and they are garbage in the city; legal brand complete machines are not high premiums, but safety, quality assurance, and responsibility.

Implementation requirements: Everyone in the sales, marketing, and channel teams must be able to clearly explain the legal basis of 3C, be able to calculate the "full life cycle cost account of low-price screens", and upgrade price comparison skills to value skills. Let everyone in the market understand chaos, reject bulk products, and abide by the law.

2. Adhere to the right path and set standards, leading the quality upgrading of the industry

Absen has always adhered to self-innovation, long-term self-discipline, continuous improvement, and adhered to the core culture of "no lying, no fraud, abiding by the bottom line, and being responsible".

Implementation requirements: Be a practitioner of legal operations in the industry, a defender of safety order, a leader in quality standards, and an end to industry chaos - this is not a slogan, but an execution standard for every screen and every order.

3. Persist in value breakthrough and win the turnaround in the Chinese market

In the short term, the industry strives for low prices, speculation, and non-standard dividends; in the long term, it strives for law, safety, standards, and quality.

In 2027, Absen will completely break away from the low-price entanglement brought by bulk screens, exchange legality for trust, use standards to build barriers, use quality to win reputation, and use value for growth.

Do not rely on speculation to win, only rely on the right path to break through; do not dance with chaos, only set regulations for the industry.

Conclusion

The maturity of any industry will inevitably go through a complete process of barbaric growth, chaos clearing, standardized development, and value concentration.

Today's LED display industry has reached a critical point where illegal chaos must be cleared up, inferior products must be eliminated, legal order must be restored, and quality standards must be popularized.

The general trend of the industry in the future is bound to be:

Bulk screens will gradually withdraw from the market, and legal complete devices will fully dominate; short-term speculation will gradually come to an end, and long-term righteousness will eventually win.

Looking into the future, Absen will always adhere to the legal bottom line, product quality, industry standards, and corporate responsibility.

Don’t care about low prices, only care about value; don’t follow chaos, only establish rules; don’t rely on speculation, only rely on the right path.

Purify the industry ecology with legal cutting, upgrade the industry bottom line with standard quality, and win the future of China's display industry with righteous values!