作者：Blade

Reasonable prices will contribute to the popularization of LED garden lights

We can find a variety of garden lights in the market, with all sorts of styles and light sources. Some of them are cheap but with poor quality conditions, some of them have good performances and qualities but really expensive. The over-expensive selling price of one good is the biggest obstacle of the promotion and popularization of this good. It is well known that price is the critical factor that determines the cost-effective of one good. Advantages and prices all together determine that whether one product can be easily accepted by buyers. As the new generation light source, LED garden lights started to emerge in the residential lighting market since 2010. There is no doubt that some of their incomparable advantages attracted a lot of attentions from merchants and consumers. But their expensive prices also kept them away from many ordinary families. Although, in the indoor lighting area, incandescent bulbs and fluorescent tubes are gradually replaced by corresponding LED lighting products, in the garden lighting area, traditional lighting technologies are still in the dominate position.

 

Reasonable prices will contribute to the popularization of LED garden lights

 

Below is the basic cost constitution of LED garden lights: the package cost occupies most part of the total production cost, about 50%-60%. Thus in order to control the production cost on a reasonable level, we need firstly choose a reasonable package structure. Since LED garden lights just entered the market, most current package structure cannot meet the special fixture design of garden lights. On the contrary, many designers have to created new shapes/constructions to meet the requirements of LED lights package structures, which also increase costs virtually.

 

Unlike other LED lighting products, LED chip cost occupies only a small part of total production cost, around 15%. Main costs are from package, cooling, structure, power supplies. Clearly, manufacturing process is the crucial section in the cost reduction. Reasonable structure design can optimize the performance of LED garden lights.

 

Design is account for 20% of the total cost. With the further development of LED technology, 5%-10% is more reasonable. For cooling designs, two issues should be noticed: a. shorten the cooling path between chips and external cooling devices; b. reduce thermal conductivity without affecting the cooling path.

LED light fittings need technological upgrade and support

Currently, LED light fittings are still in the early stage of development. Although LED lighting products have entered the industrial area, commercial area and residential area, the immature technologies still need further development, like output power, luminous flux, secondary optical design, cooling and other problems. Among them, cooling problem is the biggest difficulty for LED manufacturers. Limited by LED working principles, all structure accessories of LED lamps should have good cooling effects (good thermal conductivity) on the basis of safety. If using plastic materials, LED light fittings will soften and begin to melt within a few hours. Therefore, LED makers have restricted requirements on the LED light source structure designs and materials selection.

 

Currently, LED light fittings are still in the early stage of development.

 

The commonly used cooling material in the market is aluminum/aluminum alloy. As a result of high costs (selling prices), some makers stated to find cheaper replacements with good thermal conductivity as well. Then PC covered LED lamps started to appear in the market. PC raw materials were firstly used as fixtures during the design for kitchen lights committed by Bayer Germany. They are durable and also have good thermal conductivity. The most important thing is that they are cheap.

 

Compared with traditional lamps, LED light fittings distinguish in many aspects: different deterioration speed in lamp bead (in high temperature, under high/low voltage); Electrical control. LED lights need to work under direct current; structure design, material selection, appearance design need corresponding variations. Insolated circuits/protections should be applied to guarantee the independent operation of LED light source and lamp body.

 

Many insiders indicated that, the main reason for LED light fittings hardly to be accepted by ordinary families is their expensive selling prices, which is caused by their high production costs. The light-emitting principle determines the cost of the product. The production cost of LED lamps is two times higher than traditional lights. Specifically: the over-expensive production costs of light source; restricted requirements to package structures and materials increase the production cost by nearly 50%. Semiconductor light emitting components are generally more expensive than traditional light emitting components. Due to lacking of core technology, the majority of our LED chips need to import from foreign companies. However, the production cost of LED chips occupied more than 60% total cost of the entire lighting fixture. The profit that China’s LED manufacturers obtained is rather limited.

LED home lights are still treated as assisted light sources in residential lighting applications

In 2009, the leader of the global lighting industry – Philips, formally promoted LED home lights, listing LED residential lighting applications as one of their main developing directs in the next ten years. Meanwhile, another household lighting giant – OSRAM also promoted dimmable LED ceiling mounted lamps, to seize the market in an early time. All these implied the potentials and hopes of LED home lights dominating the residential lighting market.

 

LED home lights are still treated as assisted light sources in residential lighting applications

 

However, Professor Dahua Chen from the Lighting Research Institute of Fudan University indicated that “Although LED technologies have huge developing potentials in the lighting area, it still will take them decades years to become the mainstream in the residential lighting applications, mainly because of their bottlenecks in the research and development, and their immature in the product qualities.” Professor Chen did not hold out much hope on this part. LED can only play a supporting role in the household lighting applications.

 

LED is a type of solid-state semiconductor component, which can directly convert electricity to light. As the new generation light source, LED technology has many incomparable advantages: a. safe; LED must work under low DC voltage. LED home lights are much safer than other high-voltage lighting devices and more suitable for household applications. b. energy-saving; consuming only 80% energy but send out same light (same brightness/luminous flux) with incandescent lamps. Buyers can save their energy and money together. c. environmental friendly; LED is made from non-toxic materials, aluminum/aluminum alloy, causing no contamination to environment and recyclable. d. long service life. Theoretically, the average lifetime of LED chips can reach up to 100,000 hours (when light attenuation approaching 50%). Even LED lamps can have a working life of 50,000 hours. e. sturdy and durable; Basically, LED is just a small chip encapsulated in epoxy resin, then put into aluminum/aluminum alloy lamp fixtures. Compare with incandescent bulbs and fluorescent tubes, which are only under the protection of glass covers, LED lamps are much more durable. f. small sized; This feature enable LED lights to be made in multiple shapes and sustainable in various working conditions. This is also a designer-welcome feature, which provides more creative space for them. Some impressive lighting designs even can combine fixture designs with furniture designs, achieving the “invisible light source effect”. g. brightness and color adjustable; this feature can meet the special requirements of stage lighting as well as household lighting.

Anxiety and Depression in expression of the LED industry

In addition to the “successful biding”, some companies are also listed on the news, only the first half of 2012, there are eight LED companies successfully listed, six of which landed on the GEM. More than last year where listed seven. Another similar sense of joy: a growing number of G24 LED enterprises focus on the market, vigorously develop the channels, and pay attention to the difference advantage of market competition and strengthen the culture of investment in technology and brand.

Anxiety and Depression in expression of the LED industry

Anxiety

In 2012, due to the price advantage is not obvious, and the quality is unstable factors,  LED industry applications market are limited. The market outbreak is not as expected, in the short term, it is difficult to see the clear signs of rapid growth. Capacity continued to enlarge, and can not stop, the rapid increase of firms intensified market competition, but the very anxious is that most bereavement market channels are not good enough, the inventory can not digest. LED enterprises seem very anxious and very confused.

Perhaps because of this, entrepreneurs and experts hold a lively discussion on LED electricity providers and traditional channels in 2012. More entrepreneurs lamented the current channels of dispute as volcanic eruptions.

Some companies began operations, including the construction of the Tmall online store, self-built e-commerce platform; more people in the industry believe that LED lighting e-commerce model is not yet mature, which is still in a stage of promotion. In addition to a good line stores, dealers channels, enterprises start to think about how online sales channels, brand promotion and offline traditional channels combined to form a full three-dimensional marketing communication channels.

Depression

In 2012, the structural surplus of production capacity has resulted in the rapid decline in the profitability of the business. The three quarterly of 2012, 20 enterprises have 11 enterprises who decline different degrees in net profit in the third quarter, real data feel the loss of these enterprises.

On the announcement, the companies said that the caused reason are mainly due to the decline in performance: whether domestic or foreign, by the international financial crisis and other factors, the poor performance of the LED industry, the overall market environment; fierce market competition, to occupy higher market share, the overall input plus, develop the domestic channels, increase research and development funding efforts to significantly reduce the net profit income;

 

Joyness-the expression of LED industry in 2012

As a new type of energy-efficient lighting products, LED development space is great, but the route for the development of LED industry, the investment direction and how fast the market is to breakthrough, in 2012, it also means a more calm and mature attitude thinking and grasp the future development direction.

2012, compared to the glory of outdoor lighting, moderate indoor lighting enter into the mainstream; Compared with agitated lm / W, how to focus and enhance “optical quality” as well as emphasize the relationship between the light and the people become the focus of attention; In 2012, compared with the people who want to integrate industry chain upstream and downstream take-all, more people should promote the spirit of “focus”, advocating a fine and stronger rational attitude; while some cutting-edge companies are more heart sank to counter sink the technology research and development on the strategic position. And directly aimed the future competitors at multinational companies.

Joyness-the expression of LED industry in 2012

Joyness

In 2012, it should be said that, for the LED industry practitioners, the most joy is more than the “bid list”.

On May 16, the State Council executive meeting through the policies and measures to promote the consumption of energy-saving appliances and other products, decided to arrange 22 billion yuan to support the promotion of energy-saving lamps and LED lights. three ministries decided to restart the new round of bidding. According to statistics, in 2012 the state financial subsidies for LED lighting project enterprises, there are a total of 39, and a total of 8.73 million LED lighting products win the projects. Among them, the number of indoor lighting is up to 7.85 million, accounting for nearly 90% of the total promotion.

A total of 12 listed companies won the bid, the total product promotion quota of 3.77 million, accounting for 43.18% of the total, who become the biggest beneficiary of the tender project. Large-scale projects for the successful bidder is conducive to consolidate its industry-leading position, and this year, as well as future years of performance will have a positive impact. At the same time, LED financial subsidies will promote the project bidding starting, and will also be driven by the general lighting market, including commercial, industrial, household.

Expression of the LED industry-Excited

2012, a year with entanglement and excited, anxious and looking forward to coexist

Whatever it is joy and sorrow, all kinds of expression is just like a mirror, which faithfully reflect the hardship exploring for semiconductor lighting practitioners who walked every step – Rome was not built in a day. In the future continuous processing, let us work together, and be faced with brave, authentic expression.

Expression of the LED industry-Excited

Excited

In 2012, a series of strong government subsidies and promotion policy has continuous introduced, which strongly drives the development of China’s LED industry, so it is excited and inspiring.

From May to June, it can be described as the LED industry policy honeymoon. On May 7, the Ministry of Science and Technology released a second five “special” Semiconductor Lighting Technology Development Plan (draft) “. “Planning” indicates, until 2015, the semiconductor lighting industry scale will be reached 500 billion yuan, semiconductor lighting products accounted for the general lighting market share 30% of the specific objectives. On May 16, 2012, the State Council discussed and adopted by the national basic public service system, the 12th Five-Year Plan “, the plan is to use $ 22 million to support the promotion of energy-saving lamps and LED lights.

Meanwhile, Guangdong Province timely announced mandatory use of LED lighting products to promote the field of public lighting. All public lighting in the area which constructed by the Government or state-owned capital investment need to adopt all LED lighting products.

The high-profile layout of government in LED industry, for LED practitioners, it can be said that it is the most important the weather-vane and most powerful good; how to make domestic LED industry, which experienced troubled by the blind expansion, real use of good LED Deal, so as to drive the industry and realize the healthy and orderly development, which will continue to test the ability of the government and enterprises to deepen the implementation of the policy details and rational grasp.

Calmness

Compared to domestic investment boom of LED lighting in 2011, in 2012, when the fanatical investment of LED industry gradually faced bottlenecks, practitioners thinking are gradually become calm and rational in the face of reality.

Why commercial led lighting is so popular in today’s market

We know that today’s lighting is no longer the monotony of incandescent electrical light. The present light sources like metal halide, electrode-less lamp, energy saving lamps, HID lamps, LED, etc.; different lights will have different comparison; Take the good trend of development of LED lights, we should be aware of exactly where the difference between it and the ordinary lighting? Why commercial led lighting is so popular in today’s market?

Why commercial led lighting is so popular in today's market

Comparison of LED lighting and general lighting

The biggest difference between LED lighting and general lighting is that LED lighting is a completely electronic products, while traditional lighting is only one electrical products. Therefore, commercial led lighting can be easily associated with various types of sensors, in order to achieve a variety of automatic control functions of light control, infrared control. Such as the automatic switching of the LED street lamp, it can be simple to achieve with a photosensitive sensor; community night walkway and patio lighting, human activity information can be collected by infrared sensors, automatic opening and closing lighting.

General lighting lamps contain mercury vapor, if it was broken, mercury vapor will evaporate into the atmosphere. But LED lighting basically does not use mercury, and commercial led lighting products do not contain lead, which play a protective effect on the environment; conventional lamps will generate a lot of heat, while LED lighting convert all energy into light energy, so it will not waste. And it will not have fading phenomenon for file and clothing. LED lighting does not produce noise, So it is a good choice for the use of sophisticated electronic equipment place. It is also appropriate for the library, the office and so on; traditional fluorescent lights use AC power, so it will strobe 100-120 times per second. While LED lighting is the direct conversion of AC to DC, so it will not produce flicker, in order to maintain eye; In addition, LED lighting does not produce ultraviolet light, and thus it will not like the traditional lighting, which have many mosquito coil next to the light source. Therefore, The indoor will become increasingly clean and sanitary and clean.

Price threshold for super led

“Although we are very seriously in the tender, but the main effort will focus on the promotion of the general energy-saving lamps.” Successful LED Down light project’s Xiamen Topstar Lighting, head of marketing, told reporters that, even with the financial subsidies, but the current price of super led, it is still a certain distance entering into the homes of ordinary people. “Unless those families just need to use LED lights, or affordable energy-saving lamps are more easily extended, after all, the big gap price shows here.”

Price threshold for super led

It is understood that the bid price of the energy-saving lamp enterprises in this year slightly are higher than last year. In the Household energy-saving lamps, the winning products are ranging from 5W to 24W. Take the enterprises in Fujian Province for example, the lowers price is RMB7/unit, and the highest price is RMB13/unit in the bid. In accordance with the provisions, these energy-saving lamps will be promoted the sale by state subsidies. Subsidy funds will take an indirect way of subsidies, and supply to the end users.

According to the subsidies in previous years, the users of urban and rural residents each lamp were given 50% subsidy, that Fujian residents purchase price of financial subsidies for energy-saving lamps “this year will from $ 3.5 to $ 6.5. But Last year, after subsidies, the cheapest is 3.2 yuan/unit only. The Fujian Province explanation is that the sharp rise in phosphor powder lead to the rising cost of energy-saving lamps.

In contrast, because of the rigid material price decreasing, coupled with the fierce market competition, although super led lights are more expensive than energy-saving lamps for the first time, yet comparing the same product of the same period last year, the price has dropped more than 30%.

LED Insiders said that the bid price is still low compared with the market price, but still higher than the energy-saving lamps, because of the high production costs of LED lights. So far, the state has not been announced subsidies range of super led lights, but 50% of urban and rural residents will enjoy that subsidy, and the cheapest will be RMB17.5/unit.

The different treatment for Lighting enterprises of energy-saving lamps and LED lamps china

For the “veteran” of the lighting in the area of energy-saving lamps and New Horizons LED, there have been different “promotion and treatment” policy level. Policies promotion is very significant to promote market penetration for an industry, energy-saving lamps has received a four-year state subsidies. Last year, it has suffered the embarrassing problem of mercury contamination in the recovery. This year, LED lamps china are the first to gain state subsidies. Although some experts said, the meaning for subsidies “attitude” are more than the meaning of “reality”, but it seems that subsidies Deal “signal” bring them to the support and confidence for the enterprise.

The different treatment for Lighting enterprises of energy-saving lamps and LED lamps china

Commercial nature

State support LED trend has emerged, on the other side, the energy-saving lamps continue to receive subsidies, while its proposed higher threshold. This will accelerate the traditional lighting companies to G24 LED in transition.

According to the website of the Ministry of Industry in November this year, in order to implement the State Council and the “energy saving” 12th Five-Year Plan “and” heavy metal pollution prevention “Twelfth Five-Year Plan” to reduce the mercury content of fluorescent products the preparation of the “LED lamps china gradually reduce the mercury content of fluorescent lamps roadmap draft. Production process phase out the liquid mercury; On December 31, 2014, to December 31, 2013, the fluorescent liquid mercury Production will be phased out totally.

“This is because a large number of energy-saving lamps subsidies started to enter the demise periods, while the recovery system is not perfect.

It is understood that, since 2008, there promotes 150 million energy-saving lamps within three years, 50 million a year; subsidies for energy-saving lamps, including the U-shaped lamps, T8 trichromatic lamp, T5 lamps, suitable for factories, schools, institutions residents, etc.

“In fact, due to the policy promotes, the popularity and sales of energy-saving lamps are far more than the quantity, the using range is more wider.” Zhang added.

Previously, Europe and the United States and other countries have asked the incandescent phase-out schedule. China execute green lighting project from 1996, the production of energy-saving lamps and incandescent already by 1:34 in 1996 to 1:1 in 2010, the global market share of energy-saving lamps increased from 20% in 1996 to 85% in 2010.

BDO Runda 1 billion LEDs contract Secret

In January 8, Kingsun announced to cancel the agreement with Guangzhou Ji Cai communication Co. Ltd. 1.5 billion change to 4670 thousand. However, in the first half of this year, BDO Runda claimed to sign five orders contract. But in November 2012, the media exposed, among the five orders, four are the framework agreement(about 10 million), it does have any risk of default. and the order for the sales contract, but there has been no delivery record. The two incidents appear “agreement” orders, this is a coincidence? Or it is the hidden rules for listed companies to play in the LED Lights industry?

BDO Runda 1 billion LEDs contract Secret

Disclose the Secret of BDO Runda 1 billion contract

Six months ago in the first quarter, the BDO Runda investors is also excited. BDO Runda breath announcement of a total of up to 1.075 billion yuan leds “day-to-day operations of a major contract.”

However, the October 26 announcement of three quarterly eye-popping: from Jan to September this year, BDO Runda total operating income is 1.945 billion yuan, down 5.49% compared to the same period last year. But on the other hand, as in September, the company’s profit or loss of government grants has reached 164 million yuan.

Accompanied with the dismal performance, the above 5 parts is about 1.075 billion yuan contract, the first three quarters of this year, only cash 59,058,500 yuan.

Media exposure in November 2012, they found that a total of about 1.075 billion yuan contract turned out to have no default risk, and contracts of more than 10 billion yuan (only later “leds contract” order amount of 54.11 million yuan for a formal sales contract). the presence of the purchasing foreign shareholders information disclosure standard plot.

Therefore, BDO Runda respond to specific matters. In the agreement, it needs to be further clear in the subsequent formal contract or orders, and the formal signing of the contract or order is still uncertainty. ” the company has in the relevant announcement the risk, so there is no false representations or misleading investors.

BDO Runda admitted yesterday that the implementation of the above-mentioned contract situation is not ideal, may be unable to complete the contract within the time agreed upon in the contract sales amount.