Price War Prevailed LED Enterprises Have To Seek Transformation
Currently, LED stadium light companies to disclose semi-annual report basically completed. Although the LED lighting to replace traditional lighting penetration increasing industry in growth, but because of industry competition, price war prevailed, industry giants Foshan Lighting and NVC performance fell sharply. backpfrontp face of declining performance, companies have even fled the restructuring plan high power LED flood lighting industry. Among them, NVC continues layout Internet O2O business, Foshan Lighting the product structure optimization and planning acquisitions. backpfrontp according to the Buddha, NVC net profit was cut backpfrontp according CSAResearch (State Lighting R \u0026 D and Industry Alliance) statistics, from January to May this year, the overall size of China's semiconductor lighting industry reached 179.3 billion yuan, representing an increase of 22.7% over the same period last year. But LED product prices because of fierce competition in the industry gradually declined,1000W LED flood lighting products export price index CSAResearch released three years early in 2012 to the end of June this year, the average export price of LED lighting products has dropped by about 75%. backpfrontp August 28, Foshan Lighting disclosure of semi-annual report, the company achieved operating income of 1.52 billion yuan, down 1.21%, attributable to shareholders of listed companies net profit of 100 million yuan, down 46.9 percent. Such a big decline in first-half results, with the market environment is not good about the intense competition in the industry, product prices is large. Foshan Lighting Huangyu Fen securities affairs representative, told reporters. backpfrontp results, Foshan gym Lighting traditional lighting products, gross margin was 27.86%, compared with the first half grew 0.98%, LED lighting products gross profit margin was 18.44%, down 1.93%. backpfrontp price butcher said the Foshan Lighting Shangju by bitter price war, the other is small listed companies into the red. Jiawei shares due by LED price war, resulting in the first loss since the 2012 listing. backpfrontp August 29, Jiawei shares in the first half operating income of 406 million yuan, an increase of 18.2%, net loss of 6.55 million yuan, up sharply down to 125%. LED street lighting industry, financial and technical threshold is low, the influx of a large number of small and medium enterprises, especially small businesses not listed, relatively speaking, is not standardized, engage in vicious price competition, industry prices have also been affected, affected listed companies. Jiawei shares Securities Department official said. backpfrontp Another giant is in a consolidation recovery NVC performance also fell sharply. August 28, NVC semi-annual report, total revenue of 1.772 billion yuan in the first half, an increase of 4.1%; net profit of 17.073 million yuan, a decrease of 70.6%. Enterprises have to seek transformation backpfrontp face an increasingly competitive market, LED bay light companies are restructuring plan, some companies even directly out of the LED lighting business. Foshan Lighting transition is mainly adjusted product institutions, particularly commercial lighting field, the company securities on behalf Huangyu Fen representation. backpfrontp Foshan Lighting also report that the company will seize the LED lighting comprehensive alternative opportunity to develop LED lighting business, in addition to the development of traditional light sources in the original, civil, office lighting, but relatively weak in the original field of business according also We developed a series of products to further optimize the product structure. backpfrontp August 26, Foshan Lighting also announced that the company is working with Bain Capital (Hong Kong) Limited planning a major M \u0026 A matters. Foshan Lighting Association president Wu Yulin said, LED lighting products in the first half showed a larger price, but it can quickly replace traditional lighting, under the price war, the industry faces reshuffle, companies need quick response, provide cost advantages products, but also need to be adjusted accordingly on the strategy. The company has expanded the field of photovoltaics, the future will be LED lighting and photovoltaic business two-wheel drive. Jiawei shares Securities Department staff said, the face of increasingly fierce competition in the LED industry, the company also continued to strengthen strategic adjustment, in addition to stabilize the LED tunnel lighting business, through the capital market mergers and acquisitions quickly cut the earnings outlook good PV power plant business. NVC claimed, the company implemented a series of measures to consolidate the company's position in the industry, such as the accelerated transition to the Internet, the company has set up the electricity supplier and O2O Division to conduct online sales operations, fully open up channels for online and offline channels. backpfrontp addition, some deep LED lighting business directly out of the lighting business. August 24, Absen semi-annual report disclosure, achieved operating income of 455 million yuan, an increase of 3.36%, net profit of 44.16 million yuan, down 43%. Abby said the company's LED lighting business in recent years has been no improvement, perennial at a loss, you can not achieve profitability in the short term, the company decided to terminate the LED lighting business, focused on the LED display areas.