LED industry, internal cold and external heat, profit, turn to rely on the market

It is good for the current market companies to be alive. Last year, the sales volume was about 10 million, but what's the use of only increasing income without increasing profits. If only the profit increased like the sales volume, I would use it to buy land or make other investments. How much money can be earned by selling lights now, and the gross profit margin is declining. Opportunities, profits and chaos are difficult to win. Although China released the incandescent lamp elimination plan at the beginning of the year and the price drop of LED lighting products, LED lighting has ushered in a rapid development opportunity, there are also many experts and industry insiders who have publicly stated in many forums on technology and channels that the next 35 years will be a golden period for LED development. However, LED lighting enterprises still cannot escape the strange circle of increasing income and not increasing profits. The author visited the survey about the profit or loss of the enterprise, and the result showed that most of the enterprises were in a good profit condition, among which the enterprises mainly focused on the subdivision of the product chain were in the majority, such as the main production of LED bulb lights, LED ceiling lights, LED panel lights, etc; Enterprises that have basically no profits or losses account for a small proportion. A person in charge of an LED enterprise told reporters that it is very good to maintain the current market situation. Although it is a period of rapid LED development, in fact, it is cold inside and hot outside. The industry is very hot. The market is very weak. This year's off-season is coming early, and the merchants are hesitant to order. After that, although the sales volume of the products of the enterprises that suffered losses was good, most of them were sold at low prices. These enterprises were mostly micro-enterprises and had no financial support, relying on disorderly competition to compete for market share for a short time, after a loss, he forced himself to die. The marketing director of a packaging enterprise in Shenzhen told the author that the enterprise had been mainly engaged in packaging before, but in recent years it has gradually expanded its industrial chain and has now covered the upper, middle and lower reaches of the industrial chain. When asked about the reasons for expansion, the person in charge of the company said that the competition in the industry market is fierce, and the expansion of the industrial chain is also to enhance the competitive strength and help the company make profits. The company is expanding the export market and selling the newly developed finished lamps to the export market to increase the profitability of the company. The person in charge of another LED bulb company ridiculed himself. If it hadn't invested so much, it would have taken money to invest in other industries. Now selling lights can't be the same, and it won't make much. Many business leaders reported to the author that the profitability of enterprises in the past two years, although the sales volume has increased a lot compared with previous years, with the increase in demand for lighting products, LED penetration rate has gradually increased, and product prices have been lowered, it is not surprising that the phenomenon of increasing income and not increasing profits is not surprising. However, some enterprises admit that the reason why enterprises maintain steady growth but net profit has not increased significantly is that on the other hand, the amount of funds invested in product research and development and channel construction is also quite large. Listed companies have made profits, but the increase is not large. With the semi-annual reports released one after another, from the semi-annual reports of many LED listed companies, they are basically profitable. The data shows that the income and profit of LED listed companies have increased at the same time, but most listed companies generally believe that China's economic situation is still complicated this year, there are still many unstable and uncertain factors, and the market situation is still grim; Among them, many listed companies have invested heavily in channel construction, product research and development, and construction of industrial bases this year.