LED power market is sluggish? Why can they "make money"!

As an emerging industry of energy conservation and environmental protection, the LED lighting industry is expanding rapidly and the quality of its products is also uneven. At the same time, the increasing number of new manufacturers of LED drive power has also made its competition increasingly fierce.

With the continuous subdivision of the market, the competitive pressure from home and abroad will continue to increase or even increase, resulting in lower prices of power products and lower gross margins. Then, in order to stand out among many competitors, enterprises need to have the comprehensive advantages of technology, cost and brand in the LED driver power industry, and the product quality is high.

In addition, the promotion of corporate competitiveness through listing has gradually become a trend in the LED industry. Relative to A-shares, the threshold for landing on the New Third Board is relatively low. For small and medium-sized enterprises, it is not out of reach. In fact, in the past two years, many LED companies have poured into the new three boards, and they want to use the capital market to make a big impact.

According to the statistics of the High-tech Research Institute LED Research Institute (GGII), as of May 2016, the number of listed companies in the New Third Board market reached 7008, and the number of listed LED companies in the New Third Board market reached 113. By the end of this year, the total number of listings in the New Third Board market is expected. There will be more than 10,000 homes.

So many companies want to squeeze into the new three-board market, of which LED power companies are not a minority.

On the morning of June 9, at the 2016 (fourteenth) high-tech LED industry summit forum hosted by Gaogong LED, LED power companies Kegu Power (836751) and Leite Technology (832110) won 2015-2016 respectively. The New Third Board is the Most Investing Value Enterprise Award and the Most Growing Enterprise Award.

It is understood that Kegu Power was established on June 6, 2008, mainly engaged in the research and development, production and sales of LED driver power, providing customers with reliable, efficient and intelligent LED driver power products and solutions. On April 15, 2016, the new three boards were officially listed.

Wang Caixiang, general manager of Kegu Power, believes that “successful listing of the new three boards is a milestone for Kegu Power, which means that Kegu Power has officially become a joint-stock company. It will be more standardized in terms of company operation and product production. , laying a good foundation for sustainable development."

Indeed, it is not difficult to find through the financial report data that Kegu Power's performance is maintaining rapid growth. In 2015, the company realized operating income of 95.94 million yuan, an increase of 34.99% compared with 2014. The net profit attributable to shareholders of listed companies was 3.98 million yuan, an increase of 44.53% compared with 2014.

“In the first quarter of 2016, Kegu Power completed 94% of its planned target, which was an increase of about 20% compared with last year. The power supply market also has a certain capacity. At present, the sales volume of Kegu Power has not completely exploded, and there will be a big future. The room for growth." Wang Caixiang said with confidence.

LED power supply company Leite Technology has been closely watched by the LED industry since its successful listing of the new three boards.

On March 9, 2015, Leite Technology successfully listed the new three board. Since 2001, Leite has been committed to the research and innovation of LED intelligent control technology. It is the first manufacturer of LED lighting controllers in China and one of the earliest in the world.

Lei Jianwen, chairman of Leite Technology, said that 2015 is a year of great joy and pride for us. During this year, Leite Technology not only achieved double growth in operating income and net profit, but the greater benefit lies in Talent reserve, accumulation of technical strength and expansion of product lines. In addition, it is still officially listed on the New Third Board. This is a major strategic move for Leite Technology to become stronger and bigger and achieve leapfrog development.

According to the financial report, Leite Technology has experienced double-profit growth since its listing. In 2015, the company realized operating income of 40.08 million yuan, an increase of 41.43% over the same period of 2014; the net profit attributable to shareholders of listed companies was 16.12 million yuan, an increase of 62.05% over the same period of 2014.

Li Fangfang, sales director of Leite Technology, told Gaogong LED. "We will focus on promoting dimming power products after the next step. The sales share will be mainly based on power supply. For the market, our comprehensive technology, product innovation, and market price. Positioning is accepted by many customers, and 70% of them are exported."

All in all, although listing is a shortcut to quickly gain profits, listing is not a panacea. Enterprises need to do a better job of product quality and market layout on this basis, which is the real way to make money.

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