Chinese enterprises are facing challenges

LED industry for the first half of 2014 has continued the trend of a rapid growth in 2013, driven by demand for LED lighting, the industry seems to have reached a consensus in 2016 a continued industry boom. Related companies have expanded capacity, attracted talent, shop channels to live through the early rounds of the LED industry reshuffle. Nobody wants to miss the LED lighting market feast.

  Challenge one: excessive competitions in the whole industry chain

After years of development, China’s LED industry has also experienced several rounds of closures and restructuring, but now it seems there are still excessive competition situations.

Chinese enterprises are facing challenges

  Challenge two: the lack of new killer applications to slow down the maturing of the industry

Any industry may face recession, but some fleeting, some stretches of years.

LED industry continues to grow through open up new fields of application-driven industries, technological advances provide upstream downstream into the possibility of new applications, and innovative applications driven by booming downstream industry chain related upstream. Over the past few 10 years, landscape lighting, mobile phone backlight, display, TV backlight provides a certain period of time in the driving force of the industry forward.

  Challenge III: the blurring industry boundaries and invisible opponents are threaten the existing industrial ecology

We usually have a clear understanding of alternatives, say, an alternative is to make incandescent lamps, energy saving lamps, halogen lamps, etc., do screen alternatives is DLP, do backlight alternative is OLED, do landscape lighting and signs are very clear words and neon in the competition.

However, potential entrants, we almost can not recognize, but when it goes, we can see clearly backing. However, because unlike existing competitors know too much, it can grasp the tricks ones, such new entrants may have some completely unable to replicate resources.

  Challenge four: IPO blocking, how to complete industry consolidation with the capital markets

LED by improving industry fundamentals, coupled with the recent rise of the valuation of TMT sector in the past years, although there are intense competition and the shortcomings of low threshold, it still enjoys a certain amount of premium. Most LED listed company forecast earnings of 30 or more.