Gradually warming up, profit improvement, LED industry is not too cold this winter
2019-04-25

After years of development, China's LED industry chain has become more and more perfect. But as competition intensifies, the industry enters a period of low profit. The insiders believe that on the one hand, enterprises must abide by the law and operate with integrity, on the other hand, they need to rely on industry self-discipline, not engage in vicious competition, constantly research and develop new technologies, and improve the core competitiveness of enterprises, so as to ensure the long-term stable development of the industry -


With the advancement of LED technology, new products are emerging, and the application field is expanding. Today, LED has been widely used in lighting, display, traffic lights, medical, mobile TV backlights, plant growth and other fields. At present, the world's energy conservation and environmental protection trends are rising, science and technology are changing with each passing day, which has spawned many new economic growth points for the LED industry. The LED market has broad development space.


China's LED industry has risen in 2000. After years of development, the LED industry chain has become more and more perfect. The company is involved in all aspects of LED substrate, epitaxy, chip, packaging and lighting applications. In 2017, the total output value of the domestic LED industry has reached 638.6 billion yuan, and the downstream application scale represented by lighting, display and backlight has reached 531 billion yuan, accounting for 83%. Throughout the overall industrial chain, the middle and lower reaches industries with the closest connection with the market are due to imperfect technology, high prices, relatively low investment thresholds, and fierce competition among enterprises, resulting in the reshuffle of LED production enterprises in China from 2014 to 2015. . This year, the United States has included China's export of LED products in the list of tariffs, and the pressure on the industry has increased sharply.


Bao Enzhong, secretary-general of Shenzhen Semiconductor Lighting Industry Development Promotion Association, told reporters that as China's economy enters the 'new normal' of speed shift, industrial structure adjustment and development mode change, although the scale of LED industry continues to grow, the growth rate narrows. The profit margin has dropped from 10% to 15% in the previous two years to the 8% to 10% range, and the industry as a whole has entered the era of low profit.


Shenzhen is China's LED industry innovation frontier, relying on emerging technologies such as the Internet of Things, the LED industry is gradually picking up. In the first three quarters of this year, the output value reached 155 billion yuan, ranking first in the country. According to incomplete statistics, Shenzhen currently has nearly 3,200 semiconductor lighting related enterprises, accounting for one-half of the “half of the country” in Guangdong Province, and is mainly concentrated in four administrative regions of Baoan, Longhua, Guangming and Longgang.


'The LED industry is picking up and corporate profitability is recovering.' Bao Enzhong said that this year's investment in landscape lighting in Shenzhen is expected to exceed 3 billion yuan. From November 1st, China's structural adjustment of the tax rebate rate for 1,172 export commodities such as chemical products and glass products will be reduced to 7 files from 7 files. This is another adjustment after the export tax rebate rate for electromechanical and cultural products in September this year. The taxation department also requested to implement a paperless declaration nationwide and effectively increase the tax rebate support. Among the electronics industry related products, the biggest change is the LED bulb (tube), and the export tax rebate rate has increased from 13% to 16%. Bao Enzhong said that multiple positive news will help the Shenzhen LED industry to continue its good growth in 2017, which will enable the company to achieve a large increase in operating income and net profit.


Shenzhen Canming Technology Co., Ltd. is a national high-tech enterprise producing LED lamps. The products are mainly exported to Germany, Russia and other countries and regions. 'This adjustment of export tax rebate rate has increased the tax rebate rate of LED lights of the company's main products by 3 percentage points, which is obvious to promote the development of the company.' Li Huaxiang, the company's financial manager, said that in the first three quarters of 2018, the company's LED lamp exports amounted to 62 million. Yuan, has received more than 3 million yuan in export tax rebates, and the estimated export value will reach 18 million yuan in the fourth quarter. According to the current 16% tax rebate rate, it is expected that the tax rebate will be increased by more than 2.5 million yuan for the whole year. This policy not only reduces the financial pressure of enterprises, but also allows enterprises to have more confidence in the situation in the current trade friction.


Founded in 2010, Shenzhen Jiuzhou Optoelectronics Technology Co., Ltd. is one of the largest LED product application system solution providers in China, producing LED display screens, train lights, panel lights, control boxes and other products. At the same time, it is also the first batch of national high-tech enterprises certified, with provincial-level enterprise technology centers - LED research centers and post-doctoral research stations, and undertakes a number of 'China High-Tech Research and Development Programs' (National 863) projects. In 2018, the company's sales increased from the initial 7 million yuan to 300 million yuan, and the tax rebate increased from 400,000 yuan to 4 million yuan. The general manager of the company, Xie Yongjun, told the reporter that the tax reduction and efficiency increase gave the company real gold and silver. The reduced dividends can be invested in the research and development of the company's new technologies and new products, greatly enhancing the competitiveness of the company's products and inspiring The initiative and creativity of corporate brand building.


Shenzhen Dianjiang Lighting Co., Ltd. is a company specializing in the production and research and development of solar street lamps for more than 10 years. The series of high-efficiency and intelligent solar lighting products developed by the company has won several national patents. Gan Rongyi, general manager of the company, said that he has recently learned that the country has increased the export tax rebate rate and reduced the export pressure. The company immediately increased its export business efforts, and the current effect is quite satisfactory. It is estimated that this year's revenue will increase by about 30%, and it is expected to achieve sales of 100 million yuan next year.


Zhang Li, deputy director of the Guangming District Taxation Bureau of Shenzhen, told the reporter that the export tax rebate rate has been raised twice in a row, not only the adjustment of the largest export tax rebate rate in China in recent years, but also the most practical one in many favorable policies for promoting foreign trade development. The pressure on corporate funds has helped enterprises to “lightly install”. Zhang Li said that the Guangming District Taxation Bureau will screen and notify the export enterprises according to the New Deal. Through the implementation of symposiums and visits to small and medium-sized enterprises, they will try to meet the needs of private export enterprises, tailor-made personalized service manuals for enterprises, and guide enterprises to master. The latest export tax rebate policy and taxation process will enable private enterprise financial personnel to quickly get started, enjoy the policy dividends, and ensure that the policies are implemented in every household. It is understood that about 50 companies in Guangming District of Shenzhen export LED lamps, and the export value in 2017 is about 300 million yuan. Based on this calculation, the current round of tax rebate adjustment can increase the tax rebate of more than 9 million yuan for the LED export industry in the jurisdiction.


Many industry insiders said in an interview with the Economic Daily that the LED industry needs to achieve good development. In addition to the strong support of the national industrial policy, it is also necessary to improve the quality of LED products and reduce production costs. On the one hand, enterprises must abide by the law and operate with integrity. On the other hand, they need to rely on industry self-discipline, not engage in vicious competition, constantly research and develop new technologies, and improve the core competitiveness of enterprises, so as to ensure the long-term stable development of the industry.


Source: Hangzhou Net