The prosperity of the green lighting industry continues to improve

Statistics from Tonghuashun show that as of August 7, a total of 35 companies in the energy-saving lighting concept sector have released performance forecasts for the first half of the year, and 31 companies have announced good news. The four companies, Sanan Optoelectronics, Ledman Optoelectronics, Ankerui, and Aoyang Shunchang, which were the first to release their 2014 interim results, even delivered brilliant results, with year-on-year net profit growth rates of more than 20%. Benefiting from the continuous promotion of energy-saving policies and the maturity of the industry, 2014 is regarded as the first year of the official launch of civil LED lights in my country, and the prosperity of the green lighting industry continues to increase. LED, or light-emitting diode, has many advantages over traditional light sources, such as high luminous efficiency, fast start-up speed, no pollution, and long service life. Supporting the development of the LED industry has long been established as a national strategy. The government has successively formulated multiple projects such as the "863" plan, the green lighting project, the semiconductor lighting project, and the "Ten Cities Ten Thousand Lights" semiconductor lighting application demonstration. After years of development, the industry has gradually matured, forming a complete industrial chain including LED chip preparation, LED epitaxial wafer production, LED device packaging and LED product applications. In the early days, domestic demand for LED lights was concentrated in hotels and commercial renovations, and policy support resulted in fierce competition in the industry to a certain extent. In 2013, the newly expanded chip manufacturing equipment in the upstream was very limited, while the overall price of downstream products fell by nearly 20%. Shi Lei, an industry researcher at Founder Securities, said that investment controls, price adjustments and industry consolidation will cause pain for companies to a certain extent, but will help promote the long-term development of the industry. "The price of some products on the market has dropped to about 5 yuan per watt, which is suitable for civilian use."According to my country's "China's Roadmap to Phase Out Incandescent Lamps" released in 2012, it is planned to ban the import and sale of incandescent lamps for general lighting of 15 watts and above from October 1, 2016. The market expansion potential brought by the replacement of the existing market is amazing. Dou Linping, secretary-general of the China Illuminating Society, predicts that in the next three to five years, the industry's output value is expected to exceed one trillion yuan. Judging from the information in the 2014 semi-annual report, the peak season market is first transmitted to the upstream chip manufacturing and downstream sales leaders. Taking LED chip manufacturing company Sanan Optoelectronics as an example, it achieved revenue of 2.177 billion yuan in the first half of the year, a year-on-year increase of 30.03%, of which LED-related product sales revenue was approximately 2.028 billion yuan, a year-on-year increase of 40.68%. At the same time, the company's large-scale production has brought about declining costs, which has accelerated the gross profit margin of the chip business, reaching about 39%. "In the future, the company plans to continue to expand production equipment and accelerate market mergers and acquisitions, and the economies of scale will be further highlighted." said Liu Shunfeng, an electronics industry analyst at Ping An Securities. Of course, some companies may be out of business early and find it difficult to enjoy this wave of dividends. Dou Linping believes that in the LED lamp industry chain, midstream packaging companies are processing supplied materials, and the entry threshold is relatively low. Currently, nearly 2,000 companies have excess production capacity and may usher in a reshuffle in advance.