Market growth not decline in the price of LED device with an average drop of 20%

In the downstream lighting applications market driven, from the beginning of last year, the rate of increasing use of domestic LED packaging production enterprises, steady revenue growth continued to decline, but the price is that device packaging companies fall into the quagmire of income does not increase profits. Today, this situation quietly reversed.

The market price decline in growth

Since 2013, LED packaging market driven by the downstream end lighting applications market demand and positive. China optical photonics industry association of optoelectronic devices branch chief Yang Kewu said that in this context, the domestic LED packaging company orders full, increase product yield, synchronous growth in sales, most excellent packaging industry capacity utilization close to or exceed the best level in history, overall revenue also appears to improve the situation. However, due to the continued decline in the price of devices in recent years, the majority of domestic packaging plant gross margin has been in a state of decline.

With the opening of the downstream lighting market, the rapid rise of China's LED packaging manufacturers. 2013, the domestic LED packaging industry reached 42 billion yuan, representing an increase of more than 30% in 2012. "The China Electronic Technology Group Corporation thirteenth Research Institute deputy director Chen Caijia said in an interview with reporters," on the one hand, in the right packaging market situation, not only the first two years of excess production capacity has been digested, from 2012 five to 60% capacity utilization rate increased to 90% and above, honglitronic, REFOND, XinDa, Xiamen poly fly photoelectric mainstream companies have said it will expand production capacity. On the other hand, the packaging line (industry competition is still fierce, device prices fell sharply, the average price of the packaging side of only about 24%, the survival of SMEs is difficult, the phenomenon of corporate failures occur. "

"I also think that the market competition is intense, the product gross margin is low, which is the most direct reason that affects the operating efficiency of the domestic packaging enterprises, and leads to the phenomenon of increasing income and not increasing profits. Xiamen Hualian Electronics Co., Ltd. deputy general manager Ye Likang said. At the same time, he also pointed out that the improvement of labor productivity is lower than the rising labor costs, wage costs accounted for continuous improvement, as well as the international first-class customers for products of higher quality requirements, the main challenge is the domestic packaging enterprises.

Before the sharp decline in prices will no longer say, let us pay attention to the price trend since the beginning of this year. Jun Sheng Cci Capital Ltd investment director Zhang said, driven by technological progress and fierce competition among manufacturers, LED product prices continue to decline, the average price of packaged devices to reach 20%. The price of power devices become the hardest hit, with the 0.2W device as an example, at the beginning of the year the price is about 0.15 yuan, the current price of about 0.1 yuan, a decline of more than 30%; more than 1W and high power devices because of fierce competition in power is relatively weaker, so the price decline is relatively small, about 15% 0.1W and below; the price of small power device itself has very little space, so the decline is less than 20%. "

Leading enterprises out of the quagmire of falling profits

Compared with last year, LED product prices fell momentum has not diminished, but it is gratifying that the first half of this year, 6 listed companies in the main business of the LED package, there are 5 companies have to produce income and increase profits gorgeous transcripts.

LEDinside latest statistics show that the 6 listed LED packaging enterprises, the country star power revenue 727 million yuan, an increase of 32.45%, net profit of 64 million 449 thousand and 500 yuan, an increase of 29.30%; honglitronic revenue 426 million yuan, an increase of 33.72%, net profit of 31 million 529 thousand and 700 yuan, an increase of 44.59%; Jufei revenue of 481 million yuan. An increase of 50.71%; net profit of 83 million 651 thousand and 200 yuan, an increase of 36.56%; rectangular lighting revenues of 456 million yuan, an increase of 25.45%, net profit of 32 million 571 thousand and 900 yuan, an increase of 1.61%; allring Technology revenue 255 million yuan, an increase of 26.19%; net profit of 25 million 165 thousand and 800 yuan, an increase of 11.79%; only REFOND revenue 410 million yuan, an increase of 39.42%. But the net profit of 20 million 951 thousand and 300 yuan, down 19.98%.

Have to admit that, in the case of the continued decline in product prices, mainstream companies can hand over such a good report card is indeed some unexpected. Zhang as an analysis, as for the reasons behind the reversal, I think mainly in three areas. One is continuing to pull the LED lighting market demand, although the factors at the beginning of last year in existence, but obviously this year's momentum is more prosperous, it also explains why many people in the industry in 2014 is defined as the first year of full penetration of the domestic LED lighting market. Two is to enhance the utilization of enterprise capacity, large-scale production has brought the cost reduction. Different from the above two points, the third reason is no longer the objective factors, but the domestic enterprises to actively innovation, increase research and development efforts, with better quality, more cost-effective products into the international leading enterprises had been firmly occupy the high-end market. "

In this regard, Chinese /LED semiconductor lighting industry and union secretary general Guan Baiyu also said that under the joint efforts of the industry, the ability of independent innovation of China's LED industry continues to increase, the gap with the international advanced level has been significantly reduced. As the key technology breakthroughs, continuously improve the efficiency of light emitting devices, blue LED power reaches 140lm/W, red LED reached 85lm/W, the green LED reached 140lm/W; LED power silicon substrate has reached 140lm/W, and the mass production, at the forefront of the world. At the same time, the packaging technology is also in the form of flip chip, COB, integrated packaging and standardized modules