It is an indisputable fact that the LED lighting industry has ushered in structural upgrades. The reporter recently learned that since the beginning of this spring, major LED companies have been gearing up and began to accelerate the upgrade.
Experts pointed out that the domestic LED industry has a "light upstream industry and a backward industry", and under this mode of development, the fierce price war is forcing enterprises to transform upstream.
Comparing the company's revenue and net profit, it can be seen that LED companies are continuing the price killing situation last year, and the industrial structure upgrade and reshuffle are accelerating. Yuanfang Optoelectronics reported in the first quarter that the company's revenue was 35.4 million yuan, down 23.59% year-on-year, and net profit was 10.89 million yuan, down 43.65% year-on-year. Huacan Optoelectronics' revenue in the first quarter was 43.52 million yuan, down 58.19% year-on-year, and net profit was 17.31 million yuan, down 37.11% year-on-year. In addition, companies such as Dehao Runda and Ganzhao Optoelectronics, although the first quarter revenue slightly improved, but the net profit is still down, net profit of 43.29 million yuan and 23.67 million yuan, down 29.53%, 27.69%.
Unsatisfactory performance, companies generally blame the irrational competition of product market prices. The industry believes that in terms of LED chips, the price competition in the first quarter is still fierce, and the unit price of products continues to fall, resulting in the growth of product sales, the decline in revenue and net profit.
In fact, the overcapacity of the LED industry is an indisputable fact. As early as the early days of LED development, due to the government's huge subsidies, the industry has already had a tendency to surplus. In addition, in recent years, investment growth has exceeded market growth and has further exacerbated the problem of overcapacity.
In the view of a senior researcher, China's LED industry has a “light and heavy†model of ills, that is, the upstream industry is backward and the downstream industry is leading. The epitaxial wafers and chips of the upstream products of the LED industry basically need to be imported, and the equipment for producing chips also needs to be imported. The domestic enterprises are more in the field of packaging and application products in the downstream. This caused the industry to overcapacity in the downstream enterprises from the initial stage of development to the mid-term.
The development speed of LED lighting products is unprecedented in China's lighting industry. The rapid development of the industry has also led to the rapid upgrade of its LED products and structural adjustments. This fast-paced change has also caused Guolong Lighting, Andy Optoelectronics and Bolunte Optoelectronics to collapse in the past year.
According to statistics, the pass rate of LED lighting products at the end of 2012 was only 51%. In this case, if the company does not pay attention to product quality and technology research and development, it must be eliminated by the market.
Lin Qingshou, chairman of Duhe Optoelectronics, also said that technology research and development and quality improvement will be the foundation for the future enterprises to establish themselves in the market. Lu Weidong, general manager of Yuanhui Optoelectronics China, said that in addition to quality and R&D, cooperation and win-win will be a direction for enterprise development in the future. Many companies have created a win-win situation by forming strategic cooperation, sharing channels, products and markets.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
Experts pointed out that the domestic LED industry has a "light upstream industry and a backward industry", and under this mode of development, the fierce price war is forcing enterprises to transform upstream.
Comparing the company's revenue and net profit, it can be seen that LED companies are continuing the price killing situation last year, and the industrial structure upgrade and reshuffle are accelerating. Yuanfang Optoelectronics reported in the first quarter that the company's revenue was 35.4 million yuan, down 23.59% year-on-year, and net profit was 10.89 million yuan, down 43.65% year-on-year. Huacan Optoelectronics' revenue in the first quarter was 43.52 million yuan, down 58.19% year-on-year, and net profit was 17.31 million yuan, down 37.11% year-on-year. In addition, companies such as Dehao Runda and Ganzhao Optoelectronics, although the first quarter revenue slightly improved, but the net profit is still down, net profit of 43.29 million yuan and 23.67 million yuan, down 29.53%, 27.69%.
Unsatisfactory performance, companies generally blame the irrational competition of product market prices. The industry believes that in terms of LED chips, the price competition in the first quarter is still fierce, and the unit price of products continues to fall, resulting in the growth of product sales, the decline in revenue and net profit.
In fact, the overcapacity of the LED industry is an indisputable fact. As early as the early days of LED development, due to the government's huge subsidies, the industry has already had a tendency to surplus. In addition, in recent years, investment growth has exceeded market growth and has further exacerbated the problem of overcapacity.
In the view of a senior researcher, China's LED industry has a “light and heavy†model of ills, that is, the upstream industry is backward and the downstream industry is leading. The epitaxial wafers and chips of the upstream products of the LED industry basically need to be imported, and the equipment for producing chips also needs to be imported. The domestic enterprises are more in the field of packaging and application products in the downstream. This caused the industry to overcapacity in the downstream enterprises from the initial stage of development to the mid-term.
The development speed of LED lighting products is unprecedented in China's lighting industry. The rapid development of the industry has also led to the rapid upgrade of its LED products and structural adjustments. This fast-paced change has also caused Guolong Lighting, Andy Optoelectronics and Bolunte Optoelectronics to collapse in the past year.
According to statistics, the pass rate of LED lighting products at the end of 2012 was only 51%. In this case, if the company does not pay attention to product quality and technology research and development, it must be eliminated by the market.
Lin Qingshou, chairman of Duhe Optoelectronics, also said that technology research and development and quality improvement will be the foundation for the future enterprises to establish themselves in the market. Lu Weidong, general manager of Yuanhui Optoelectronics China, said that in addition to quality and R&D, cooperation and win-win will be a direction for enterprise development in the future. Many companies have created a win-win situation by forming strategic cooperation, sharing channels, products and markets.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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