According to every report, at present, the semi-annual reports of LED lighting companies have basically been disclosed. The reporter noticed that although the penetration rate of LED lighting replacing traditional lamps is increasing and the industry is in a growth period, due to fierce competition in the industry and the prevalence of price wars, the industry giant Foshan Lighting and NVC Lighting saw a sharp decline in performance.
In the face of declining performance, companies have planned to transform or even escape from the LED lighting industry. Among them, NVC Lighting continues to deploy Internet O2O business, while Foshan Lighting optimizes product structure and plans mergers and acquisitions.
Buddha's photos and NVC's net profits were cut in half
According to statistics, from January to May this year, the overall scale of my country's semiconductor lighting industry reached 179.3 billion yuan, an increase of 22.7% over the same period last year. However, the price of LED products has gradually declined due to the fierce competition in the industry. In the three years from the beginning of 2012 to the end of June this year, the average export price of LED lighting products has dropped by about 75%.
On August 28, Foshan Lighting disclosed its semi-annual report. The company achieved operating income of 1.52 billion yuan, a year-on-year decrease of 1.21%, and net profit attributable to shareholders of listed companies was 100 million yuan, a year-on-year decrease of 46.9%. "The decline in performance in the first half of the year is related to the poor market environment, fierce competition in the industry, and a large drop in product prices." Huang Yufen, representative of Foshan Lighting Securities, told reporters.
According to the financial report, the gross profit margin of Foshan Lighting's traditional lighting products was 27.86%, an increase of 0.98% over the first half of the year, and the gross profit margin of LED lighting products was 18.44%, a year-on-year decrease of 1.93%.
Foshan Lighting, known as the "price butcher", is still suffering from price wars, and other small and medium-sized listed companies have fallen into losses. Jiawei shares suffered its first loss since its listing in 2012 due to the LED price war.
On August 29, Jiawei achieved operating income of 406 million yuan in the first half of the year, a year-on-year increase of 18.2%, and a net profit loss of 6.55 million yuan, a sharp drop of 125% year-on-year. "The LED lighting industry has low capital and technical thresholds, and a large number of small and medium-sized enterprises are pouring in, especially small enterprises that are not listed. Relatively speaking, they are not standardized and engage in vicious price competition. The industry price is also affected, affecting listed companies." Jiawei A person from the Securities Department said.
Another giant NVC Lighting, which is in the period of rectification and recovery, also experienced a sharp decline in performance. On August 28, NVC Lighting's semi-annual report showed that the total operating income in the first half of the year was 1.772 billion yuan, an increase of 4.1%; the net profit was 17.073 million yuan, a decrease of 70.6%.
Businesses seek transformation
In the face of increasingly fierce competition in the market, LED lighting companies have planned to transform, and some companies have even directly withdrawn from the LED lighting business. "The transformation of Foshan Lighting is mainly to adjust the product organization, especially in the field of commercial lighting," said Huang Yufen, the company's securities affairs representative.
Foshan Lighting also stated in the report that the company will seize the opportunity of comprehensive replacement of LED lighting and vigorously develop LED lighting business. In addition to developing in the original traditional light source, civil and office lighting fields, it will also develop in the original relatively weak commercial lighting field. A series of products were launched, and the product structure was further optimized.
On August 26, Foshan Lighting also announced that the company is planning major mergers and acquisitions with Bain Capital (Hong Kong) Co., Ltd. Wu Yulin, president of the Foshan Lighting Association, said that the price of LED lighting products fell significantly in the first half of the year, but this can quickly replace traditional lighting. Under the price war, the industry is facing a reshuffle, and enterprises need to respond quickly and provide cost-effective products. The product also needs to be adjusted accordingly strategically. "The company has expanded the field of photovoltaics, and will be driven by LED lighting and photovoltaic business in the future." The staff of the securities department of Jiawei Co., Ltd. said that in the face of increasingly fierce competition in the LED industry, the company is also constantly strengthening strategic adjustments. Lighting business, through capital market mergers and acquisitions, quickly cut into the photovoltaic power station business with good profit prospects.
NVC Lighting said that at present, the company has implemented a series of measures to consolidate the company's industry position, such as accelerating the transformation to the Internet, the company has established an e-commerce and O2O division to carry out online sales business, and fully open up online and offline channels.
In addition, some companies that are deeply involved in LED lighting have directly withdrawn from the lighting business. On August 24, Absen disclosed its semi-annual report, achieving an operating income of 455 million yuan, a year-on-year increase of 3.36%, and a net profit of 44.16 million yuan, a year-on-year decrease of 43%. Absen said that in recent years, the company's LED lighting business has not improved, and it has been in losses all year round, and it cannot achieve profitability in the short term. The company decided to terminate the LED lighting business and focus on the field of LED display.
