China Packaging Trends Analysis: price diving is a foregone conclusion

At present, China's LED packaging industry has a considerable economic scale, accounting for about 70% of global LED packaging production, the proportion of the future will further enhance. The number of China LED package has more than 2000 companies, but as a country, Chinese package does not appear a packaging giant, but in the international packaging on the list of "mingluosunshan". Although there have been several listed companies in mainland China, but still able to compete with the international giants packaging enterprises almost No. In contrast, the top five global LED packaging manufacturers as CREE, PHILPS, Samsung, Nichia, Taiwan billion light, of which Taiwan Dachang billion light focus on packaging, SMD LED packaging industry leader, is also the main supply of LG, SHARP, Samsung and other LED LCD TV manufacturers business.

Sales rise

Although the situation in a certain period of time will not change, but some experts pointed out that the whole of the LED industry chain, in fact, packaging business is the most benefit of business this year, because this year in addition to the LED lighting market started, the whole backlight industry chain transfer from South Korea and Taiwan enterprises.

LED packaging companies this year has changed obviously, especially the packaging enterprises have been listed reflects common features: the overall performance increased steadily, but the main business strength and the actual profitability is not ideal, falling profits.

According to earlier all the lighting industry of listed companies to disclose the 2013 semi annual report shows that this year the overall performance steadily upward, compared to the same period last year, 91% of the lighting of listed companies has improved, the average increase of up to 22.36%. Although the data is good, but the worries behind the annual report is still worrying, especially white light devices, prices showed a rapid downward trend.

This LED white light device demand rose, according to the survey, the newspaper repeatedly visited the project planning team, from the beginning of the year, LED chip light source (white) market demand is very large, especially in the field of Home Furnishing lighting and commercial lighting, LED packaging enterprises and application of enterprise business fire up, even if the quality and price manufacturers also higher orders received mercy. According to the sales situation, the days of packaging enterprises should be quite moist, but the fact is very different. LED white light device market this year began, directly into the fierce competition period, due to excessive prices, in addition to some photoelectric Dachang may obtain a certain profit through expansion, many small and medium-sized enterprises showing a facing reshuffle crisis.

Price diving

From the first half of 2013 annual report released by the listed companies, the company's white light devices have a downward trend in gross margin. Operating income growth of 20.34% honglitronic white devices main white business, but Lamp LED SMD LED gross margin fell 9.35%, gross profit fell 9.84%; 49.23% growth photoelectric LED lighting device operating income margin Ruifeng, 4.89% lower than last year; Jufei LED lighting devices operating income of 43 million 902 thousand and 300, representing an increase of 42%, gross margin was 20.16%, but the decline 5.59%. This year, the price of white light packaging device is too large, the prices of many companies have gradually to the cabbage price closer.

Some industry sources, the first half of this year, 5630, 5730 prices fell quickly, but relatively stable 2835. 5630 over the same period last year can sell more than $5, this year, there are more than 2 companies sell wool. The 2835 decline is even greater, before more than 3 wool, now more than 1 wool.

Large manufacturers can still expand production to reduce costs and improve returns, but the small factory how to do? Small plants both in capacity or hardware than manufacturers, in order to fight the price, many manufacturers cut corners, using only the defective chip - chip project, Fudge consumers, the market that muddy the waters.

Scale become watershed"

Through the size of the advantages, packaging manufacturers will have a cost advantage and price advantage. Due to the size of the various enterprises, the survival of the various packaging companies vary, polarization is very serious. There is an order of the packaging plant continues to expand production, the scale effect is constantly emerging, such as Ruifeng optoelectronics; and no order packaging manufacturers can only close the door closed, such as ray star photoelectric. The main LED product Lei stars from the second half of last year began losses, this year's business is very bleak, loss of state maintained for nearly a year, plus the purchase price can not be recovered, no wonder that 1 million of the debt has crushed the last straw it "". Small scale enterprises lack of cost advantage, in the face of declining gross margin, the lack of price advantage of the small factory is even more difficult to survive.

Therefore, at the beginning of this year sales unpopular, many packaging companies choose to expand production capacity, such as Shenzhen howteen photoelectric. The relevant responsible person said, this year, LED lighting market is quite popular, beginning Hao photoelectric 7070 once appear in short supply situation, but quickly solve this problem, it took two months to adjust. In order to production of new products, some optoelectronics 30 lines, production capacity of 5KK per day, has been in short supply this problem. But after the sales season, the market demand began to stabilize, sales can not keep up with the slow development of orders.

In addition, many packaging listed companies have the expansion plan: honglitronic first half of this year has increased the 100KK production capacity, the second half of the year will increase 200KK. Poly Fei photoelectric cost 100 million yuan to expand the production of LED lighting project completed in September 30th this year. Ruifeng photoelectric raised investment in the first half of this year, lighting LED product technology transformation project, the production of