LED downstream future applications remain the biggest difference is still lighting market

In China, in the middle reaches of the LED industry, there is no space for small and medium enterprises. As a result, LED's profit margins are concentrated in downstream applications.

At present, the downstream of LED listed companies including Yankon and lamp field KingSun others, packaging companies and upstream chip companies attempt to downstream development.

The region, in the domestic LED packaging and application of enterprises mainly concentrated in Guangdong, and on the surface, some enterprises have a certain scale, some companies even more than 20% in the first few years of profits, but in the industry is not optimistic.

LED downstream applications in the future there are differences, technological innovation demands

LED industry chain from upstream to downstream industry barriers to entry gradually reduced. The upper and middle reaches of the technical content is high, the capital input density is big, is the most intense international competition, the biggest business risk. In the middle reaches of the LED industry, there is no space for small and medium-sized enterprises, and in the downstream, a large number of SMEs, the pattern of confusion.

The current LED is mainly divided into the lower reaches of the lighting, backlight, display plate. While domestic enterprises have 6000 to 10000, but also 100 billions of dollars of sales. 70% enterprises in the Pearl River Delta region, as well as part of the Yangtze River Delta, southwest and Anhui. KingSun secretaries told financial weekly newspaper reporter.

"Upstream chip companies are more concentrated in the foreign countries, foreign LED products of high luminous efficiency, energy saving and low heat, so the basic research mostly in foreign countries, the advantages of domestic enterprises in the application, because of the technological innovation do not have the advantage, you can only think of a way to reduce the advantage in. Jiangsu Changshu United Institute of environmental energy technology, Changsha, also told reporters.

Now, LED products are widely used in mobile phones, is the most important application of LED products, accounting for about 30% of the total market demand. In general, each phone needs 10-20 LED products, respectively, in the use of mobile phone keyboard, display backlight and camera phone flash. LED product penetration in the mobile phone market has stabilized, the future growth of mobile phone use LED products will be directly affected by mobile phone sales.

But for now, LED's biggest market demand in the future lighting. KingSun secretaries told reporters.

"At present, the cost of lighting is higher, because the LED is a unit of luminous body, its biggest strength is in the point, line, surface of the application of light, such as hanging on the Christmas tree, a small bulb, the surface of the building contour lights, etc.. If used on the street lamp, the power requirements of the lamp is very high, it does not use its advantages, the difficulty is very high, unless through technical innovation to reduce the cost and can compete with the current tungsten lamp. Jiangsu Changshu United Institute of environmental energy technology, Changsha, has different ideas for LED applications.

Yankon teamed up to take the necessary mutual Sanan Optoelectronics

Relying on energy-saving lighting lighting started in recent years, the establishment of a subsidiary in Xiamen to do LED lamps.

The company in 2012 before the basic business is energy-saving lamps, a few years ago, the company will gradually invest in the development of LED, in the Ministry of Shangyu and Xiamen have built a LED base. After 2012, the company began to LED business volume, then it will achieve 364 million yuan in revenue, the future of LED will become the company's main products.

The energy-saving lamp has been the main force of the company, but because of the gradual rise of LED lamps and transformation of the company, energy-saving lamp business declined slightly, the first half of 2013 operating income was 767 million yuan, down 2.22%.

From the global market, the current energy-saving lamps, China's output of about 4000000000, accounting for only about 85% of global production, as well as some in Southeast Asia, and from the point of view of the amount is less. Therefore, Changjiang Securities analyst Yuan Cheng believes that with the gradual withdrawal of many small and medium manufacturers of energy-saving lamps, the concentration of the upgrade, the future of the gross margin of energy-saving lamps will stabilize.

In keeping the energy saving light at the same time, the company is also actively exploring the road of LED transformation.

The company in 2013 three quarterly show, with the raising of funds and gradually put into the project, the company's wholly-owned subsidiary of Xiamen sunshine to expand the production scale of LED; at the same time, Shangyu headquarters for an annual output of 60 million (sets) of LED lighting products industrialization project "has been put into production in May, as of the first half of 2013, has invested to raise funds 161 million yuan. The first three quarters of 2013, Xiamen and Shangyu, the total capacity of the two sets of 21 million 500 thousand (lamps and light), revenue of $730 million.

According to the 2014 budget analysts, with continued expansion in advance, according to the annual average, Xiamen light source is expected to reach an annual output of 70 million, while the Shangyu headquarters of the light source to achieve 20 million, 5 million sets of lamps, from the LED business revenue is expected to reach 18-20 billion yuan, the proportion of total revenue will reach about 50%.

In addition, Yankon also jointly expand and enrich the industrial chain with the upstream chip leader Sanan optoelectronics joined. But also need to improve the downstream three optical chain.

In September 2013, Yankon and three optical set up a joint venture company, registered capital of 30 million yuan, the sun's own funds invested 18 million yuan, accounting for 60% of the registered capital, three optical invested 12 million yuan, accounting for 40% of the registered capital. Yankon and three optical joint venture mainly lies in the common development of new light sources, and give priority to the use of LED products are expanding market channels.

KingSun Lifi optical communication is still in development

Domestic downstream focus on the field of street lights