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LED chip competition, large prices are stable, gross profit margins are declining year by year
author:tom2020 Release time:2020-05-21 13:55:24 Read:9

In recent years, we have vigorously supported the development of the LED industry chain, promoted the continuous increase in the production capacity of the lighting manufacturing industry, and the market as a whole has continued to rise. According to statistical data, from January to December 2019, the main products of the lighting manufacturing industry, lamps and lighting devices completed 4.35 billion sets (units and units), a year-on-year decrease of 5.2%. From January to December 2019, the operating income of lighting appliance manufacturing enterprises above designated size was 355.14 billion yuan, a year-on-year decrease of 3.6%; the total profit was 22.90 billion yuan, a year-on-year increase of 7.7%.

However, after several years of rapid development in the LED industry, the industry's concentration has gradually increased. During the process of capacity transfer, some small and medium-sized manufacturers have increased their production capacity significantly in the absence of a reasonable and complete layout of technology, equipment, and customers, which has caused traditional lighting. In the field, the LED chip supply and demand structure is unbalanced, and the unit price of the product has fallen, which has caused industry companies to experience varying degrees of performance decline, or even substantial losses. The LED industry has entered a period of adjustment.

From the statistical data, LED chip companies are more difficult in 2019. In the past year, the LED industry chain has been affected by the continued downturn in the global economic environment and the rise in raw material prices and labor costs. The development of the LED industry is relatively weak. Under the general environment, chip companies have developed more difficultly. Both revenue and net profit in 2019 are not as expected.

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