Strong shuffling under the future LED lighting industry who is ups and downs
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Wei Li, the board secretary of Dongguan Qinshang Optoelectronics Co., Ltd., said that the LED lighting industry has started a price war last year. This market cannot accommodate so many businesses. It is inevitable that some companies will be eliminated. The market cake is so big, but there are still new companies coming in. Everyone is optimistic about the prospects of this industry, whether strong or weak, are entering.
Zhang Lianxin, chairman and general manager of Qingdao Carl Optoelectronics Technology Co., Ltd. also said that the LED industry market is quite competitive. The fierce competition in the industry and the rapid maturity of technology are the reasons for the price decline.
Life and death password
Chinese investment habits have swarmed up, and Zhang Lianxin saw the situation: there are constantly peers opening, and there are constantly peers closing down. There are only five or six large and small LED companies on Zhuzhou Road in Qingdao. Last year, another colleague was closed.
Wei Li said that the LED lighting industry is currently facing overcapacity and there are thousands of such companies across the country. Small and medium-sized enterprises that have just been established will find it difficult to survive. Because the LED market is characterized by engineering guidance, it has not yet reached the stage of independent consumption. This means that the ability to advance funds, the ability to undertake projects, and the strength of the brand are all disadvantages for small and medium-sized enterprises.
Zhang Lianxin said that the current closure of packaging companies in the middle of the industry chain is the most likely. Because the middle reaches are easier to enter and the technical content is the lowest, so there is a relative surplus. If you can't achieve large-scale operation, you will lose money and even close the door. “There are millions of capitals and even hundreds of thousands of them. You can build a workshop-style factory. But to master the core technology and to withstand the test of big projects, it must be a long-term focus on this industry and become The company with strong strength in the industry and a lot of technology precipitation and project accumulation. Such enterprises are also the last companies that can survive." Wei Li said.
At present, in the LED lighting industry chain, the upstream chip and the midstream package are relatively surplus. These enterprises have large investment in the early stage, and the state's policy subsidies are also relatively large. Many enterprises value the state subsidies. After a large amount of investment, the downstream application market has not broken out enough, and it is difficult for the upstream to recover huge amounts of money. cost of investment.
Wei Li said that when there is not much market in the middle and upper reaches, the price of the product has begun to drop sharply. The development of the entire industrial chain is to make the overall price. The biggest threshold for the LED downstream application market is the price. When the technology is mature enough and the downstream price comes down, it will force the middle and upper reaches to make profits. However, if the price in the middle and upper reaches does not fall, the order will not be available and the profit margin will be lower and lower. The downstream is also striving to become bigger in the market scale, in order to achieve economies of scale, small profits but quick turnover, and downstream price pressures are also constantly being transported upstream. The entire industry chain is complementary.
As a downstream LED production plant, Qinshang Optoelectronics has an initial profit margin of 40% to 50%, and the current profit margin remains at around 30%.
Industry shuffling and self-slimming are continuing. In March last year, Qinshang Optoelectronics sold the shares of Shandong Weifang Holding Co., Ltd. “Because this holding subsidiary has suffered continuous losses, it has already formed a drag on the performance of listed companies.†Wei Li said, “The market space is limited, the project resources are insufficient, and the losses are two or three years in a row. Because it is a holding company, it is expected to have positive Contributed, but the partner is not doing well, and it doesn't make much sense to do it. Qinshang Optoelectronics chooses to quit."
It is reported that Qinshang Optoelectronics sold the shares to a boss in Linyi. Now, the cooperation with Jinyuanqin is to serve as a customer and to perform paid services. "In the LED industry, there are a number of enterprises going bankrupt every year. The same investment and scale operation, there are scale market support to support the work, otherwise it can only close the door." Wei Li said, "the final elimination of enterprises, is the lack of working capital, take Not a big project, no sales revenue, and then a vicious circle of enterprises."
Next PV?
There are also concerns in the industry that the LED lighting industry may become the next photovoltaic industry.
Wei Li said that the LED industry can not be said to be the same as the photovoltaic industry, because the photovoltaic industry is hugely invested and polluted, and its application market is not as huge as the future of LED. The problem with the LED market is that everyone is optimistic and there are too many influxes. As a result of the swarming, the market is saturated and surplus. In addition, there are no other negative things. The current profit margin and price decline are relatively fast. However, the country’s support has remained as it has always been.
UBS Securities analyst Mao Ping said that in the context of macroeconomic recovery, the overall prosperity of the LED industry chain is expected to stabilize and rebound; with the improvement of domestic enterprises' technical level, it is expected that the future will be tilted from domestic lighting companies to chips. It is a good overall industry.
In Zhang Lianxin's view, the LED industry is no problem in the sunrise industry, but this industry has gone through a period of 10 years of free development. The country has no restrictions on the entry of LED companies. As long as enterprises are willing to enter and are willing to invest, they can enter. As a product of marketization, the current status of the industry is relatively high. After the development, the country re-regulated. Therefore, industry norms are also imperative.
Zhang Lianxin said that in 2020, LED lighting should be used to replace the original lighting equipment in the world. In the future, there will be another eight years. Who is the company that will eventually sink, who will finally emerge, and the company that will eventually survive will go. Solve global lighting problems.
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