LED market

Lighting market contributes to the development of industrial chain.

 

As for these LED listed companies, their increasing performance mainly enhanced by lighting market. In 2013, the LED lighting market will directly bring high-speed development of its related industry train.

 

With LED lighting as its main business, Changfang Lighting achieves high revenue growth in the first half of the year in 2013. Per Changfang, their revenue growth is due to the development of the whole LED industry and increasing demand from the market. Meanwhile, the high performance and reasonable selling prices of its products is widely accepted by market with great competence, which leads to increasing sales and revenue. Meanwhile, the construction of distribution channels is effective and increases the sales of application products, which is greatly increased from last year.

 

The development of this industry has been turning to upper stream from down stream. Sanan Photoelectricity stated in their semi-yearly report that their equipments are fully running due to high demand for LED lighting products in the market. Their semiyearly revenue is increased by 22.13% from last year and their net profit is increased by 33.47% after deducting the non-recurring profit and loss for the listed stock holders.

 

The revenue has been increasing with price reduction but there is no increase in net profit.

 

Although affected by the development of the industry, there is rapidly growing demand for chips and packing. But due to price deduction, Some LED enterprises are still in trouble without profit increase. Huacan Photoelectricity and Leimam Photoelectricity and other companies report the revenue and profit decreasing.

 

In Jul12nd, Huacan Photoelectricity released its semiyearly performance report of 2013.  The report indicates that their net profit for their listed stock holders decreased by 46.1% to 67.6%, and their net profits is about 12 to 20 million RMB.

 

The report from Huacan Photoelectricity shows that the main reason for the profit deduction is that the unit price for the chips was greatly deducted due to the irrational price competition. Although the sales volume is more than last year, the total revenue and net profit have been reduced. In order to adapt the competitive market, the company decided to adjust the prices for some of their products in the first half year, which objectively led to the decreased sales revenue.

 

Facing the increasing demand for LED lighting products, related LED enterprises make much efforts in the LED market layout, which is to enter the outbreak period. The insiders remind that there are unstable factors in LED market such as low price competition, so enterprises should make efforts to improve the performance and selling price of their products and increase their added value in order to enhance healthy development of this market.