Analysis of gross profit margin of China's main white LEDs in 2009-2011

According to the latest survey by the High-tech LED Industry Research Institute, since 2009, due to market investment and demand, LED packaging output has increased by multiples, while prices have fallen by more than 15% per year. It is expected that the price of China's main LED white light bead will remain in 2012. Will continue to decline. The price of LED lamp beads continues to decrease, which directly affects the reduction of the gross profit margin of LED lamp beads. According to statistics, from 2009 to 2011, the gross profit margin of China's main white LED LED beads continued to decrease, and the annual average decline exceeded 13%.

The main white LED price data description:
· Scope of data: only select the white LED brightness rate produced by Chinese enterprises. Model: Select the main models 3528, 3020, 3014, 5050, 0805, 0603, 1W
·Time: January 2009-December 2011·Price: The gross profit margin data involved is the average value. Enterprise size: The selected LED packaging companies have annual sales exceeding 30 million.
The following are the main conclusions of this survey analysis:

· The gross profit margin of the 0805 and 0603 series, which is the main source of light and backlight, has been relatively stable, and the gross profit margins of both have not exceeded 14.5%. The gross profit margin of the 0805 series in 2011 was 16.5%, down 14.4% year-on-year; the gross profit margin of the 0603 series in 2011 was 17.6%, down 14.1% year-on-year.

· Whether it is the pioneer in the field of lighting 3 5 2 8 , 5 0 5 0 or as a substitute for 3528, 5050 on the fluorescent tube 3020, 3014 series, the gross profit margin has dropped significantly in the past two years, the decline More than 15%, and some even dropped by nearly 18%. Among them, the 3528 series in 2011 had the lowest gross profit margin, only 24.8%, down 17.9% year-on-year; the 3014 series gross margin was 27.4%, down 16% year-on-year.

· As the most commonly used light source 1W high-power series in the field of power-type lighting, the gross profit rate decline in the past two years is the highest among all statistics. In 2009, the 1W high-power series gross profit margin was 42.6%, and its gross profit margin was only in 2011. 26.3%,
The average annual gross profit margin fell by more than 21%.

· In 2011, the average gross profit margin of China's major LED package devices was 3014, 1W high power white LED, 5050, 3020, 3528, 0603, 0805, respectively.

1. The gross profit rate of China's main white LED LED beads continued in 2009~2011
Table 1 below is the white light LED lamp bead interest rate survey (in Figure 1: the average trend of gross profit margin) surveyed from 2009 to 2011. From the above table 1, we can see that the main LED white light bead margin in China has been since 2009. All showed a downward trend. The gross profit margin of 1W high-power series decreased by up to 20~22.2%, and the gross profit margin of 0805 and 0603 series decreased by 13~14.5%.




  (The picture shows the average trend of gross profit rate)


Source: Gaogong LED Industry Research Institute

0805, 0603 series In all statistical LED white light products, the gross profit margin is the lowest in the calendar year, never exceeded 25% since 2009, and the gross profit margin in 2011 was lower than 18%, respectively 16.7% and 17.7%; The gross profit margin of the 1W high-power series was the highest among all statistical products before 2010. In 2009, its gross profit margin reached 42.6%. The gross profit margin of all the products in the statistics exceeded 40%, but the price continued to drop. By 2011, the gross profit margin was only 26.3%.


Second, the main factors affecting the gross profit margin of white light LED lamp beads continue to fall
According to the survey of the High-tech LED Industry Research Institute, the gross profit margin of LED white light in China has been decreasing significantly in the past two years, and the decline in the middle and low-end products is the largest, and the price reduction of high-end products is relatively small. The main reason for the continued price cuts in China's LED white light bulbs is that the price of LED white light bulbs continues to decline much faster than the cost reduction.

3. In 2012 , China’s main LED white light bulbs’ gross profit rate will continue to decline, which will inevitably
The latest survey by the High-tech LED Industry Research Institute shows that from 2009 to 2011, the gross profit margin of China's main white LED LED beads continued to decline, with an average annual decline of more than 15-18%. The high-tech LED industry research institute expects that the gross profit margin of China's LED white light bulbs will continue to decline in 2012, but the decline will slow down. The average decline in gross profit margin is expected to not exceed 13%.

According to the data currently tracked, the current material price has been reduced, and the manufacturing costs such as management fees and transportation costs are still increasing slightly. In order to ensure profit, the company will control the price drop of LED white light bead in exchange for higher gross profit margin.

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