The four problems and Countermeasures of Guangdong LED industry in the second half of the year

The first half of 2015, light in the LED lighting efficiency and reduce the cost of the last drive, the traditional lighting alternative market and incremental LED application market space smooth opening of Guangdong LED industry, which also showed a good momentum of development, expansion of production capacity continues to sustained export growth and development continued to be active, industry boom continues to improve. However, with the gradual transition from the growth stage of the industry to the mature period, in recent years, LED industry price war intensified, the industry does not increase the benefits of income, product quality problems such as uneven highlights.

First, the basic situation of the industry

(a) the rapid growth of LED output, key enterprises to accelerate the expansion of production capacity. According to industry data show that in the first half, Guangdong LED industry output value of 187 billion 814 million yuan, an increase of 21.53%. From the production point of view, LED lighting fixtures, accessories and materials, light sources and professional lamps in three areas to achieve the output value of 376.03, respectively, 317.54 and 28 billion 954 million yuan, accounting for the main body of LED output. From the growth point of view, the light source and professional lamps grew by 65.46%, leading the rapid growth in the field of LED output. The first half of the year, Elec-Tech raise 4 billion 500 million yuan investment project, honglitronic additional 700 million yuan expansion SMD LED production line, Jufei, Linsen, Chau Ming technology also raised massive funds investment for expansion of LED production, has become the focus of attention on the LED industry in the first half.

Figure 1:2015 Guangdong Province in the first half of the total output value of LED industry composition

(two) the rapid growth of key products in the field of LED exports, strong The Belt and Road "market demand. In the first half, Guangdong LED ten key areas of product exports $9 billion 691 million, an increase of 56.06%, accounting for the country over the same period LED product exports of 47.89%. Among them, LED other lighting and lighting equipment exports the largest, exports $3 billion 269 million, an increase of 64.83%; LED chandeliers, exports $2 billion 948 million, an increase of 96.54%. From the export market, the export scale of Guangdong LED products of The Belt and Road national market was $3 billion 224 million, an increase of 140.68%. Among them, the export of Silk Road Economic Zone exports $1 billion 418 million, an increase of 95.67%, twenty-first Century Maritime Silk Road $1 billion 806 million, an increase of 193.73%. Countries do not see, Singapore, India, Malaysia, Vietnam, Saudi Arabia and other emerging markets eye-catching performance, showing a good momentum of explosive growth.

Figure 2:2015 Guangdong in the first half of the LED key monitoring areas of export share distribution

(three) R & D investment continues to increase, technological innovation continues to be active. In the first half, Guangdong LED patent authorization for 9561, representing an increase of 16.13% over the same period last year, accounting for the same period in the country LED patent licensing amount of 34.10%. Among them, the number of invention patents in Guangdong province LED 614, an increase of 36.14%; utility model patent authorization of the year, an increase of 5.49%; design patents authorized by the number of 5468, an increase of 21.94%. R & D investment from the point of view, the first half of the year, Guangdong LED industry R & D investment growth of 13.55% over the same period last year, key enterprises to increase research and development efforts, such as rectangular lighting R & D investment grew by 147.47%, allring technology R & D investment grew by 132.90%, honglitronic R & D investment grew 75.89%, Chau Ming technology R & D investment grew by 51.97%, the photoelectric R & D investment grew 35.61%, leading the industry to continuously improve the technical level of LED.

Figure 3: comparison of the various types of LED patents granted by Guangdong and the country in the first half of 2015 (unit: Unit)

(four) GSC early warning index after Yang, the industry boom continued to improve. Industry agency monitoring results show that in the first half, representing LED industry boom degree of GSC warning index mean 120.6, located in the industry boom partial heat range. Judging from the trend of the GSC early warning index, January warning index was 116.98, then the index rose gradually, in April ushered in a small peak of 127.8 in June fell slightly to $124.1, the index showed a general trend after the first rebound. The weight of indicators, the willingness to invest index since April to enter the hot after the interval, a sustained expansion; the new orders index since March to enter the hot interval after continuous high operation; production and sales income index index both upward, the raw material price index stabilized, industry index rose slightly, showed a good momentum to improve the smooth development of the LED industry.

Figure 4:GSC early warning index change chart

Two, analysis and recommendations of the hot issues

(a) analysis of the hot issues in the industry

1 market competition, industry gross margin fell. In 2015, LED market competition further intensified, the first international lighting giant PHILPS 6.5WLED bulbs to 30 percent off, GE launched a $10 to buy a BrightStik LED, CREE BR30LED 9W floodlight price $15, OSRAM T8 lamp price cut three times in succession, then the domestic, FSL, Ou Pu, NVC, Qin fine Linsen lighting follow up company. Intensified market competition caused the industry to accelerate the decline in gross margin. In the first half, LED gross margin was 20.33%, compared with the same period in 2014 fell by 10.13 percentage points. From the key enterprises, the gross profit margin fell 5.79 percentage points, alto electronics fell 7.97 percentage points, nationstar fell 3 percentage points, REFOND and glazing approximately fell 2 percentage points, many enterprises have different degrees of decline in gross margin problem.

2 price war led to frequent product quality problems. The first half of the year, LED lighting products price index averaged 94.30, while during the rise and fall, but the overall downward trend shock to conceal. June, LED light source products