Policy support for LED companies to bring significant positive

Policy support will undoubtedly bring significant positive LED companies. But LED product price chaos, the phenomenon of a big price war still exists, which gives the industry a layer of people can not see the shadow.

In March 20th at the tender, the same type, with the specifications of the product price differences, such as the specifications for the 9000LM LED street lamp products high price up to 9200 yuan, the low price of only 920 yuan; specifications for 14000LM LED lamp products of high price reached 11000 yuan, while the low price is only 1062 yuan.

According to the data provided by the Institute of Industrial Research Institute of high LED and Guoxin Securities Economic Research Institute, in 2011 the price of LED street lamps in the basic 20 ~ 25 yuan / watt. According to this calculation, 9000LM street lamp power in 80 ~ 100W, the market price of about $1800. Obviously, some companies may not even quote the cost price. Industry insiders say, cheap is to get subsidies. "

It is reported that this tender subsidy funds will be taken by way of indirect subsidies, financial subsidies to the successful enterprise, and then by the enterprise according to the sales price minus the agreement to supply financial subsidies after the price to the end user.

There had LED enterprise boss said in an interview, affected by the national energy conservation policy, more and more office buildings, hotels, city lighting engineering, lighting equipment upgrading is willing to pay the price. But they generally only care about is not LED, and then consider the lamp itself life and energy saving effect. Therefore, LED manufacturers to build relationships and build a relationship, try to do public relations, but almost ignoring the quality of products. The boss said that the price difference between the different quality of the LED chips, there is no self-discipline of the price war can be seen everywhere in the industry.

"Some manufacturers of traditional lamps and lanterns can be done casually. An investment bank has been involved in a LED enterprise IPO told the China business reporter, LED lower reaches of the lower barriers to entry, resulting in mixed business.

He Zaihua, a senior adviser to the investment adviser believes that the overall excess capacity spawned frequent outbreak of the price war. At the end of 2011, two Shenzhen junduoli enterprise LED and deshida declared bankruptcy, is affected by the price war. In 2011, the price of a single chip LED chip prices fell 25% compared to 2010 to 30%, which is the impact of corporate profits is considerable. "Statistics show that in 2011 listed non-listed company, the downstream industry of the industry average gross margin of only 15%, 2009 to 2011 Chinese (mainly LED lamp application industry) gross margin continued to decrease, and the average annual decline of more than 13%.

Shenzhen LED Industry Association believes that last year China's LED industry plans to add a total investment of over 100 billion yuan, but according to statistics the actual investment is far less than the expected amount of investment, the actual production capacity is less than the expected production capacity, so the actual excess capacity and did not imagine so serious. With the LED industry to spend a period of rapid growth, in the case of capacity to achieve a certain degree of saturation, product prices, corporate profits decline is also in line with the trend of industrial development. "