The year of 2016 was a year when the pattern of LED industry changed dramatically. Facing the low-price competition in the mainland market, international giants such as Philips and Osram gradually broke their arms and reduced their burdens. GE suddenly withdrew from the lighting market in Asia and Latin America, taiwan enterprises reduced the output of Blu-ray LED to the four-yuan LED market;
However, the domestic market is also not peaceful. The rising prices of raw materials and the collapse of logistics have triggered the capital chain. The year 2016 was a year when the LED industry structure changed drastically. Facing the low-price competition in the mainland market, international giants such as Philips and Osram have gradually broken their arms and reduced their burdens. GE suddenly withdrew from the Asian and Latin American lighting markets, and Taiwanese companies reduced the output of Blu-ray LED to the four-yuan LED market;
The domestic market is also not peaceful. The rise in raw material prices, the collapse of logistics have caused panic in the capital chain, the depreciation of the RMB cliff, and the environmental storm swept through small and medium-sized enterprises. The reshuffle continues.
Some prices of LED were raised, and the phosphor still fell sharply. Among them, the round-by-round price increase was an important key word in 2016. In the case of falling prices over the years, the overall loss of the industry continued, and the price bottomed out and rebounded, return to a reasonable profit margin, from the initial chip price increase to the lamp bead, and further spread to the downstream application end, covering almost all ends of the industrial chain.
However, the price of the phosphor is reversed, and the price is still falling sharply.
According to data, the price of LED fluorescent powder exported from Changshu region of Jiangsu province fell sharply in 2016, with the average unit price falling from 551 last year. $5/kg fell to 252 this year. 7 US dollars/kg, a year-on-year drop of 45. 8.
In this regard, Feng Rongbiao, technical director of LED division of Jiangmen Keheng Industrial Co. , Ltd. , analyzed that some phosphor manufacturers lacked the mass production capacity for continuous research and development last year, it is difficult to keep up with the pace of product quality improvement and cost reduction in the industry and provide competitive products that meet market demand.
This eventually led to the risk of bankruptcy, and even some small factories in order to clear the inventory as soon as possible, there was a loss of sales, which seriously disrupted the market.
Although the price of LED phosphor dropped sharply last year, the total sales volume of LED phosphor still maintained a rapid growth trend, and the development of the entire LED phosphor industry remained optimistic.
However, some LED phosphor companies have low comprehensive competitiveness and cannot stand firm in the big waves. They have been gradually eliminated or merged.
At the end of 2016, there were only 5 or 6 LED phosphor manufacturers still in large-scale production. Feng Rongbiao said frankly.
The joint advantage has doubled the output in 2016 and allowed the market competition to be more turbulent. The domestic phosphor brand enterprise Keheng industry is still firm. In 2016, its output value in LED business reached more than 30 million and its sales volume reached more than 30 tons.
Kehengneng has always been in the forefront of the industry, which is closely related to the company's own strategic layout.
Feng Rongbiao said that Keheng has always adhered to the company's tenet of quality and customer first, and has invested a lot of manpower and material resources in product research and development, in addition, it has carried out industry-university-research cooperation with Fudan University, Sun Yat-sen University and other well-known domestic universities and institutions to jointly develop products to improve product quality.
This urges Keheng LED phosphor products to maintain their quality advantages. At the same time, it combines the scale advantages of Keheng tricolor phosphor to reduce costs, maintain price advantages on the basis of quality, and realize real cost performance.
In addition, in April 2016, Keheng and Hangzhou Yinghe photoelectric material Co. , Ltd. carried out resource integration and jointly established Hangzhou Yingke New Material Co. , Ltd. , a subsidiary of Keheng Holdings, the market share of Keheng's LED phosphor products in East China has reached more than 50.
Based on the above, under the combined effect of the advantages of quality, cost and capital operation, Keheng achieved an increase of about 60 in output value in 2016 and doubled in output.
The four major directions will be launched. The overall deployment in 2017 will look forward to 2017. The LED industry will gradually return to rational development. As the development of the upstream phosphor industry, it is worth looking forward.
At present, the average price of LED phosphor products is close to the cost line. Affected by factors such as product research and development investment and rising raw materials, it is estimated that the price of LED phosphor will stabilize in 2017.
Feng Rongbiao said that Keheng's goal in the LED business in 2017 is to double the output value.
In order to achieve this goal, Keheng has formulated specific strategic guidelines: 1.
In terms of products, Keheng will continue to increase investment in product research and development, maintain cooperation with well-known domestic universities and institutions, and strive to maintain advantages in product quality, at the same time, increase the research and development of backlight products, and grab the big cake in the backlight field. 2.
In terms of technology, Keheng will continue to give full play to its advantages in application design and matching to meet the market application demand in 2017 according to the LED Full spectrum application technology independently developed, in order to achieve application innovation in ultra-high display, ultra-high brightness, etc. , to provide customers with better solutions and products. 3.
In terms of market, we will continue to maintain communication and interaction with customers, actively maintain the relationship between major customers, jointly develop products with customers, and increase customer proportion and market share. 4.
In terms of capital and cooperation, Keheng has already participated in two downstream application companies, Shenzhen lianteng and Shenzhen Huaxia Guangcai, at the same time, it integrates the resources of the material enterprise Hangzhou Yinghe optoelectronics and jointly established Hangzhou Yingke, a subsidiary of Keheng holding company, to provide more value-added services for packaging customers by combining horizontal and vertical manufacturers, so as to enhance the competitiveness of Keheng.
In 2017, Keheng will continue to give full play to the capital advantages of listed companies, continue to cooperate with large manufacturers such as chips, packaging glue and supports in the horizontal direction, and cooperate with downstream application manufacturers in the vertical direction, form a comprehensive Keheng ecological circle, and at the same time realize the joint development of LED industry and achieve multi-party cooperation.
With great achievements, Keheng may become the next heavyweight enterprise in the LED industry.