The upstream downstream backward, leading the development of the LED industry top-heavy

LED lighting industry ushered in structural adjustment has become an indisputable fact. Reporters recently learned that since the spring of this year, the major LED companies have started to accelerate the transformation and upgrading of eager for a fight. Experts pointed out that the existence of the domestic LED industry, the upstream industry backward, downstream industry leader, the first light foot heavy mode, and in the development of this model, the fierce price war is forced into the upper reaches of the enterprise transformation.

Comparison of corporate revenue and net profit can be seen, LED enterprise is still a continuation of last year's price grappling, industry structure upgrading, accelerating reshuffle. Far photoelectric first quarter results, the company revenues 35 million 400 thousand yuan, down by 23.59%, net profit of $10 million 890 thousand, down by 43.65%. Hua photoelectric first quarter revenues of 43 million 520 thousand yuan, down by 58.19%, net profit of $17 million 310 thousand, down by 37.11%. In addition, like the sun, dry, such as photovoltaic companies, although a slight improvement in the first quarter revenue, but net profit is still down, net profit of 43 million 290 thousand yuan and $23 million 670 thousand, down by 29.53%, a decline of 27.69%.

Performance is not ideal, the enterprise is generally attributed to the irrational competition in the market price of the product. The industry believes that the LED chip, a quarter of the price competition is still fierce, product price has continued to decline, resulting in product sales revenue, although the growth situation, but net profit double down.

In fact, LED industry overcapacity is an indisputable fact. As early as in the early stages of the development of LED, due to the huge government subsidies, the industry has been a tendency to excess. In addition, in recent years, investment growth over market growth has further exacerbated the problem of excess capacity.

Xue Shengwen, a senior researcher at the investment adviser, it seems that China's LED industry there is a head light foot heavy model ills, that is, the upstream industry backward, downstream industry leader. LED industry upstream product epitaxial wafers, chips need to be imported, the production of the chip equipment also need to be imported, domestic enterprises are more stacked downstream packaging and application products. This allows the industry to upgrade from the initial stage of development, the consequences of excess production capacity of downstream enterprises.

LED lighting products in the development of China's lighting industry is unprecedented. The rapid development of the industry also makes the LED product upgrading and structural adjustment to the rapid changes of the fast-paced country also let Long Zhaoming, Andy photoelectric, bright Optoelectronics in the last year have been plunged into crisis. In this regard, the general manager of Guangzhou Guangya Messe Frankfurt to Beijing Daily reporter Hu Zhongshun said that as the global lighting industry landmark event in Guangzhou Lighting Fair this year will focus on technology innovation in LED industry, highlighting the concept of national energy saving and environmental protection.

According to statistics, by the end of 2012 LED lighting product pass rate was only 51%. In this case, if the enterprise does not pay attention to product quality and technology research and development, is bound to be eliminated by the market. Wo photoelectric chairman Lin Qingshou also said that the technical research and development and quality improvement will be the basis for the future of enterprises based on the market. Hui Hui, general manager of China, said Lv Weidong, in addition to quality and research and development, cooperation and win-win will also be the future direction of enterprise development. A number of enterprises through the formation of strategic cooperation, sharing channels, products, markets and other advantages to create a win-win situation.