How to survive in the "barbaric" LED lighting market?

Panorama network reported that the current LED lighting in barbarism. "This is the sound of the science and technology secretaries, Hao Hao, a sigh, but also to say the LED lighting market situation, the industry has no threshold, a large number of brands, the price war fierce, the most intuitive consequences is that profits shrink. Million run technology last year, net profit fell 9.1% in the first quarter of this year fell by 76.87%. How to survive in the "barbaric" LED lighting market? Recently, an exclusive interview with reporters Wan run technology.

Do not sell civilian lighting personality"

In the capital market, LED lighting listed companies and a lot of Hong Kong stocks have NVC, A shares have a rectangular lighting, KingSun, but allring technology is among the "alien". The company is currently the main commercial lighting and municipal lighting. "Civilian areas of the country did not have a standard, we are in the price," Wan run technology secretaries Hao Jun analysis, our products mainly in the high-end, do not have the advantage of civil. "As a result of adhering to the commercial and municipal lighting on the road, the 20% gross profit margin LED technology business lighting up to 37.95%, while other listed companies LED gross profit margin of about.

Business according to the EMC model money hungry

Do not need to fight the price war, but also have higher quality requirements. Due to the characteristics of the market, more than a dozen hours of light time is its biggest feature. Run technology to do business lighting, part of the EMC (contract energy management) model, which is free to install, and then share the benefits of energy saving. Replace the LED lighting of the mall is not money but also save money, it is a big thing. However, Mason technologies, pre loaning is a huge expenditure, only 710 million yuan by end, there are some to quench their thirst.

"EMC contract energy management, from the current market development is relatively rapid, Mason behind the more important aspects of lighting," Hao Jun also admitted that the EMC mode is also very large demand for funds, but the next few years is also the development direction of the company.

M & a scale expansion

In fact, whether it is according to the business or the people, the biggest concern is LED lighting industry concentration is very low. How to rapidly expand the scale of thousands of companies, improve brand competitiveness is the demand of each LED lighting company. Million run technology is no exception, the expansion of the business sector in the field of looking for a more detailed segmentation of the target company, the day is one of the photoelectric.

In August last year, the million run technology announcement to 10.76 yuan / share price will increase by raising $710 million, in addition to supplement working capital, the other half of the money is spent on the acquisition of 390 million yuan on the photoelectric. On the day of the photoelectric is a LED advertising logo lighting company, the main billboard large light box. Do not look at the market segmentation, there are ten billion scale, the market share of the city on the day less than 10%, but has been the leader in the field. But allring technology believes that the cooperation between the two sides after more synergies, "on the photo on the advertising logo sector accumulated a lot of customers, they are often interested in indoor lighting, indoor lighting," said Hao Jun is the company strengths, accumulation potential customers, on the other hand can also digest our packaging capacity. "

Next, Wan run technology will also follow the business segments in the field to find in the market or in terms of technology to do the leading companies".

The new Industrial Park production capacity expanded 3-5 times

At present, allring technology in Shenzhen has got Shirble department store, SF, etc. Meikailong orders. According to the city and the current replacement rate to speed up the market, not only energy saving and environmental protection requirements, the state has also stimulated the subsidy policy. Hao Jun judgment, according to the replacement should be able to have 30% to 40% of the annual growth of the industry, according to our next two years of planning, lighting business should be able to maintain between 40% and 50%".

In terms of capacity, the company Dongguan Songshan Lake Industrial Park by the end of 2013 and the beginning of the end of last year have been put into use. In particular, the expansion of the production capacity is obvious, compared to the original lighting capacity can be expanded three times or even five times. "

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