LED enterprise in the price war cut net profit seeking transformation

According to the report, at present, LED lighting enterprises semi annual basic disclosure, the reporter noted that, although the LED lighting to replace the traditional lighting penetration rate increasing, the industry in the growth period, but due to fierce competition in the industry, the price war prevailed, industry giants FSL and NVC a sharp decline in performance.

The face of decline in performance, companies have plans to transition or even escape the LED lighting industry. Among them, NVC continues to the layout of the Internet O2O business, FSL will optimize the product structure and the merger plan.

As the Buddha, NVC net are cut

According to statistics, from 1 to May this year, the overall size of China's semiconductor lighting industry reached $179 billion 300 million, an increase of 22.7% over the same period last year. But the price of LED product but because the industry competition gradually decreased at the beginning of 2012 to the end of June this year, 3 years, LED lighting products export average price cumulative decline of about 75%.

August 28th, FSL semi annual report, the company achieved operating income of 1 billion 520 million yuan, down by 1.21%, attributable to shareholders of listed companies net profit of $100 million, down by 46.9%. In the first half of the decline in performance is so large, with the market environment is not good, the industry is highly competitive, lower product prices. FSL securities affairs representative Huang Yufen told reporters.

Reported that the gross margin of FSL's traditional lighting products was 27.86%, an increase of 0.98% over the first half, LED lighting products gross margin was 18.44%, down by 1.93%.

There is price butcher, said FSL was still suffering from price war, other small and medium-sized listed companies are in a loss. Jiawei shares LED due to the impact of the price war, led to the emergence of the first loss since listing in 2012.

In August 29th, Jiawei shares first half operating income of 406 million yuan, an increase of 18.2%, net profit loss of 6 million 550 thousand yuan, up sharply down 125%. "LED lighting industry, technology and capital threshold is low, a large number of small and medium-sized enterprises into, especially not listed small enterprises, relatively standardized, vicious price competition, industry prices are also affected, and listed companies. "Jiawei shares Securities Department said.

Another is to rectify the recovery period of giant NVC performance also showed a sharp decline. In August 28th, NVC semi annual report shows that the first half of the total operating income of 1 billion 772 million yuan, an increase of 4.1%; net profit of 17 million 73 thousand yuan, a decrease of 70.6%.

Enterprises are seeking transformation

In the face of increasingly fierce competition in the market, LED lighting companies have plans to transition, and some companies even quit the LED lighting business. FSL's transformation is mainly to adjust the product organization, especially in the field of commercial lighting, the company securities affairs representative Huang Yufen said.

FSL also said in the report, the company will seize the opportunity to fully replace LED lighting, vigorously develop the LED lighting business, in addition to the development in the original traditional light source, civilian and office lighting field, in the original weak commercial lighting field has also developed a series of products, and further optimize the product structure.

August 26th, FSL also announced that the company is working with Bain Capital (Hongkong) Co., Ltd. planning major mergers and acquisitions. President of FSL Lighting Association Wu Yulin said, LED lighting products in the first half of the price decline is larger, but it can quickly replace the traditional lighting lamps, in the price war, industry faces reshuffle, enterprises need to provide quick response, cost-effective advantage of the products, also need to make corresponding adjustments in the strategy. The company has expanded the field of photovoltaic, the future will be LED lighting and photovoltaic business two wheel drive. "Jiawei shares Securities Department staff said, in the face of the LED industry competition is becoming increasingly fierce, the company also continued to strengthen strategic adjustment, in addition to stabilize LED lighting business, quickly cut earnings prospects better photovoltaic power plant business through the acquisition of the capital markets.

NVC said the company has implemented a series of measures to consolidate the company's position in the industry, such as accelerating the transition to the Internet, the company has set up electricity supplier and O2O department to carry out online sales channels, fully open up the online and offline channels.

In addition, some deep rooted LED lighting enterprises directly out of the lighting business. In August 24th, aibisen disclosed semi annual report, operating income was 455 million yuan, an increase of 3.36%, net profit of 44 million 160 thousand yuan, down 43%. Abison said that in recent years, the company's LED lighting business has not improved, perennial losses, the short term can not achieve profitability, the company decided to terminate the LED lighting business, focusing on the field of LED display.

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