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Foshan LED Business Prospects Geometry? Foshan Lighting Lamps Enterprises Veteran Suffered A Cold Autumn

Edit:OAK LED Co. Limited   Date:Jan 12, 2017

 sales industry golden nine silver ten, yet for many Foshan LED stadium lights, just last September is still a little bleak. Recently, the media burst Foshan Touve Environmental Lighting Engineering Co., Ltd. (hereinafter referred to as Foshan Tovey) caught in the dilemma of funding strand breaks, the old lamp enterprises Foshan Lighting also suffered cold autumn. Insiders pointed out that the current Foshan LED industry into a price war, Foshan Tovey,stadium lighting etc. is a microcosm of many SMEs. If not misplaced on product development in the future there will be more Tovey appears. backpfrontp Case: backpfrontp have corporate profits fell 4 percent over backpfrontp recently, LED Business Foshan Tovey into funding strand breaks, unpaid wages and payment of suppliers, revitalize need 300 million yuan of rumors. And in mid-July this year, Foshan Tovey's official website announced that the start of listed share reform strategy and its further with Alibaba,high power led flood light Dongpeng home, Xinpeng robot joint open Tovey Internet ++ project, the implementation of innovation-driven strategy to green low carbon transition. Two months later, smug Foshan Tovey has ushered in funding strand breaks rumors. backpfrontp on rumors, Foshan drag dimension did not give a positive response. But on Liansu Foshan Electrical and intent regarding cooperation Tovey, Foshan Tovey September 23 publicly said in its official website, in April this year,1000W LED flood light the two entered into a collaboration, then Liansu Electric (China Liansu Affiliates ) provides loans to Foshan Tovey; but as of September 22, the two sides have not yet agreed on the loan conversion issues. backpfrontp drag dimension not only of Foshan, Foshan old lamp enterprises listed Foshan Lighting also felt the chill of autumn. According to semi-annual report released by Foshan Lighting, revenue and net profit Foshan Lighting in both fell. In the first half, the company achieved operating income of 1,524,362,800 yuan, down 1.21%; total profit of 124,449,400 yuan,led tunnel light down 45.64 percent. backpfrontp addition, Foshan Lighting recently also the controlling shareholder of the first partner OSRAM ended a decade-long partnership. Informed sources said that the two had more friction, and this year the decline in performance of Foshan Lighting is an important factor to promote the end of this cooperation. backpfrontp addition to falling profits, shareholder changed hands, coupled with nearly 50 million yuan of Panpei,led high bay light China Light King into the troubled, and half a dozen lights Foshan Cosio responsible person said, this year it tough. backpfrontp Cause Analysis: backpfrontp price tear product profits backpfrontp force caused by the decline in performance for the first half, Foshan Lighting explanation given is: the rapid development of LED lighting industry, but the product of structural overcapacity, resulting in product prices continued to fall. Foshan Lighting the report shows that in its main business in the first half of its traditional products revenue decreased 30.65%. Although its LED lighting products revenue surged 76.86%,led tunnel light but gross profit margin of only 18.44%, down 1.93%. Association president Wu Yulin backpfrontp Foshan lighting also told reporters that because of the low entry barriers LED business, product homogeneity serious, coupled with falling demand, resulting in oversupply, appeared this year structural overcapacity situation. But whether SMEs or industry giants, not thinking of the adjustment of product structure, but added the price of scrimmage to expand the market. Wu Yulin said, the entire LED industry price war, so many large enterprises have no profit at all, which makes small lighting companies not listed more difficult situation. backpfrontp For example, in the past one 1.2 meters of LED T8 tube has sold over twelve hundred dollars, but now the Foshan Lighting, Op lighting the LED gym lights T8 tube locked in price 10 yuan or less. This wayward prices led the decline in product margins, giants profit margins are compressed, small and medium enterprises is the lighting goes to the bottom line. backpfrontp Wu Yulin said that in the increasingly slim profit margins, the Foshan municipal orders Tovey need to do some advance funds may be the capital chain there is a problem. While its forecast, Foshan Tovey is actually a microcosm of the LED arena light industry, the long run, the future of many more Tovey will face closure. backpfrontp Industry Insights: backpfrontp 8 into the business at the chain backpfrontp Wu Yulin think, bears a price war may be at the expense of product quality for the price. It believes that in addition to Foshan lamp enterprises focus on product functional lighting while, the product should be towards intelligent, personalized, health-oriented aspects of the transition. backpfrontp traditional business growth momentum, but the high value-added products to the LED transition need technical and financial costs. Some industry analysts pointed out, Foshan Lighting LED tennis court lights attempt to increase efforts to achieve a breakthrough in transition, but the lack of upstream production technology, coupled with weak growth in the traditional business, to promote the domestic LED lighting is less than expected, so the resulting decline in the company's performance. backpfrontp It is understood that in 2014 a total of Foshan LED enterprises 1248, the South China Sea area of LED-related companies accounted for about 51% of the number of enterprises in the city last year, the whole region about the size of the LED industry chain value of 100 billion yuan, but the region's 81.5% The LED enterprises in LED downstream, providing low value-added applications and supporting services. Data show that in nearly 650 companies in the South China Sea, in the upstream LED tunnel lights chip factory only two, LED epitaxial plant only one; packaging plants about 110, while in the downstream LED LED applications and supporting approximately 530 vendors. backpfrontp more SMEs faced with the same brand management, new product development, product line complete lack of competitive products embarrassment. backpfrontp breakthrough revelation: backpfrontp integrate the whole industry chain extended scale backpfrontp However, in the LED lighting industry, the country star power, Wright and other enterprises surrender Buddha quite brisk performance single. Media statistics 40 LED industry-related semi-annual results of listed companies notice Data show, which has 22 forecasted. backpfrontp as domestic package leader, the country star power analysis, said: industrial chain advantage is one of the company's core competitive advantage. Country star power focuses on LED packaging technology and production processes, to expand by producing middle reaches of the package, technological innovation and management upstream chip optimized, combined with extensive expansion of the downstream lighting applications product sales, improve the company chips, packaging and lighting applications, the whole industry chain vertically integrated development model, expanded the scale, to provide customers with more cost-effective products and services. backpfrontp the first half, Wright also internal and external resources to implement an integrated development strategy. In the main business areas, through product innovation and deep to protect the public LED lighting and energy-saving fluorescent lamps, and other fields steady operating performance. In the extended development, the company leveraging investment mergers and acquisitions, and actively layout of new industries, expand their business scope, adding new profit growth point. backpfrontp have local Insiders pointed out that the enterprise-wide integration of industrial chain is not enough, industry consolidation has entered the deep water. Materials from the LED epitaxial wafers, chip, packaging and finished products to the power supply, etc., involved in all aspects of the industry chain, pushing cooperation, we can make the production of each company can be more stable and focused more resources to product development. Julia Leung, chairman of the Guangdong Real Faith Enterprise Group also believes that, LED flood light industry will move towards integrated innovation, cooperation and joint development mode.