The old lamp enterprises encounter the "moving" Foshan LED prospects?

Guangzhou daily news sales industry, the golden nine silver ten, however, many of the LED companies in Foshan, just past September is still a bit bleak. Recently, the media burst Foshan touve environmental lighting Engineering Co. Ltd. (hereinafter referred to as "Foshan Tovey") into the capital chain rupture predicament, the old lamp enterprises FSL also suffered cold autumn". Insiders pointed out that the current Foshan LED industry into a price war, Foshan touve etc. is a microcosm of many small and medium enterprises. If not in the product development of dislocation, there are more "Tovey" will be the future.

Individual case

There are more than 4 decline in corporate profits

Recently, Foshan LED enterprises into the fund chain break, Tovey owed wages and suppliers and revitalize the $300 million rumors. And in mid July this year, Foshan Tovey's official website announced that the start listing reform strategy, and promotion and Alibaba, Dongpeng Home Furnishing, new robot Peng jointly opened "touve Internet plus" project, the implementation of innovation driven strategy, low-carbon transition to the green. After two months, with Foshan Tovey has ushered in the capital chain rupture rumors.

About rumors, Foshan drag dimensional did not give a positive response. But Guangdong Liansu electrical cooperation with Foshan's Foshan Tovey intention, Tovey September 23rd on its website publicly said that in April this year, the two reached a cooperation intention, then, Guangdong Liansu electrical (China Liansu affiliates) provides loans to Foshan Tovey; but as of September 22nd, the two sides have not yet agreed to loan.

Foshan is not only drag dimension, Foshan veteran listed Light Companies FSL also feel the coolness of autumn. According to the semi annual report released by FSL, FSL's revenue and net profit both fell. In the first half, the company achieved operating income of 1 billion 524 million 362 thousand and 800 yuan, down by 1.21%; total profit of $124 million 449 thousand and 400, down by 45.64%.

In addition, FSL is also in the near future with the first controlling shareholder partner OSRAM terminated up to ten years of cooperation. Informed sources said that the two had more friction, and this year's decline in FSL's performance is an important factor in the end of this cooperation.

In addition, shareholders, easy profit fell nearly 50 million yuan plus Panpei, "Chinese light king" into "an eventful year", Western Europe and Foshan Kai dozen lamp enterprises responsible person said, "this year's life difficult".

Reason analysis:

Price tearing force caused by meager product margins

For the first half of the decline in performance, FSL gives the explanation is: the rapid development of the lighting industry LED, but the product structure overcapacity, resulting in product prices continued to fall. FSL report shows that in its main business, in the first half of its traditional product revenue decreased by 30.65%. Although its LED lighting products revenue rose 76.86%, but the gross profit margin was only $18.44%, down by 1.93%.

President of Foshan Lighting Association Wu Yulin also told reporters that due to the LED enterprises to lower threshold, product homogeneity serious, coupled with the decline in market demand, resulting in product structural overcapacity pile up in excess of requirement, this year the situation. But whether it is SMEs or industry giants, do not want to adjust the product mix, but to join the price war to expand the market. Wu Yulin said that the entire LED industry price war, so that a lot of large enterprises have no profit at all, which makes the case of small and medium enterprises do not appear to be listed more difficult.

For example, in the past, a 1.2 meter LED T8 lamp had sold over $one hundred or two hundred, but now FSL, OPPLE lighting LED T8 lamp prices locked at less than 10 yuan. This "willful" price led to the decline in product margins, the giant's profit margins are compressed, small and medium lighting enterprises are touched the bottom line of the cost.

Wu Yulin said that in the increasingly thin profit situation, Foshan Tovey made some municipal orders need to advance funds, funds chain problems may. The forecast, Foshan touve is actually a microcosm of the LED industry in the long run, the future will face closure "d".

Industry observation:

8 into the downstream industry chain

Wu Yulin believes that the price war may be at the expense of the quality of the product price. In its view, Foshan lighting enterprises in addition to focusing on product lighting, while the product should be more intelligent, personalized, healthy transformation.

Traditional business growth is weak, but the transformation of high value-added products to LED technology and capital costs. Industry analysts pointed out that FSL is trying to increase the LED transformation efforts to achieve a breakthrough, but because of the lack of upstream production technology, combined with the traditional business growth, the promotion of domestic LED lighting is less than expected, resulting in the performance of the company's decline.

Nanhai District Electric Lighting Industry Association report shows that in 2014 the city's total LED of 1248 enterprises, the South China Sea area LED related enterprises accounted for the number of enterprises in the city of about 51%, the LED value chain scale of about 10 billion yuan last year in the region, but the region's 81.5% LED Enterprises are in the downstream of LED, providing added value and application lower supporting services. Data show that nearly 650 companies in the South China Sea, in the upper reaches of the LED chip factory is only about, LED epitaxial plant is only about 1; packaging plant about 110, while in the downstream LED applications and supporting manufacturers about LED.

In the report, the South China Sea electric light source lighting industry association also proposed that more SMEs are also facing brand management, new product development, product line Qi