Xishan Coal and Electricity Group advances LED explosion-proof lights

Xishan Coal and Electricity Group advances LED explosion-proof lights 'Xishan Coal and Electricity Group invests in LED lighting mainly due to the long period of downturn in the coal industry this year, and it is difficult to change in a short period of time. The extensive expansion of coal enterprises is unsustainable, and the transformation and upgrading of enterprises is imminent. 'In addition, Xishan Coal and Electricity Group has sufficient financial strength, and as a downstream customer of LED, it can digest a lot of products by itself,' said Wu Chaoguo, an industry researcher at China Business Intelligence.com.　　 Xishan Coal and Electricity Group currently owns the largest domestic coal-fired pithead power plant and one of the largest domestic coking coal production bases. However, due to multiple factors such as the slowdown in economic growth and the impact of imported coal, the price of coking coal has fallen sharply this year. The LED industry is benefiting from the state's subsidy policy and is in a growth stage.　　 'Because of the good energy-saving effect of LED, the state has issued a large number of industrial support policies. The LED lighting market is in a period of rapid market growth, Xishan Coal and Electricity Group has a relatively good time to enter.' Wu Chaoguo said.　　 However, the risks faced by the current development of the LED industry should not be underestimated. Earlier this year, Shenzhen Haobo Optoelectronics, a billion-dollar LED company, was reported to have stopped production. It invested 10,000 yuan to enter the LED lighting market last year, but it failed to bring the expected high returns to the company, and the funds were in trouble. In addition, the profitability of LED companies is very dependent on subsidies. For example, LED leader Sanan Optoelectronics has a net profit of RMB 100 million in the first three quarters, and subsidies amount to RMB 100 million, accounting for nearly half of the total. In this regard, Wu Chaoguo also said that although Xishan Coal and Electricity Group chose a relatively safe joint venture to enter the LED industry, which enabled the company to quickly enter the market and reduce some investment costs, it also caused Xishan Coal and Electricity Group to not master the core technology of LED lighting. The endogenous competitiveness of enterprises is insufficient.