This year's LED product prices drop 30%

“The price of LED products will continue to decline, and the rate should be similar to that of 2014. With the advancement of technology, there is still 30% drop in space.” Sunlight Lighting said at the 2014 annual performance briefing held on April 22.

The continuous decline in product prices has more or less impact on the gross profit margin, but Sunshine Lighting does not worry too much. “From the 2014 situation, although the price of the product has fallen more, the company’s gross profit margin is still increasing. Therefore, with the improvement of technology, it is still possible to maintain a reasonable gross margin level."

In 2014, the proportion of revenue from sunlight lighting LED lighting products rose from 31% in the previous year to 50%. The transformation of the company's business from traditional lighting to LED lighting has been basically achieved.

In 2015, with the gradual increase of LED penetration rate, the traditional business will continue to decline and is expected to continue the decline rate in 2014. However, the growth rate of LED revenue in 2015 will be better than in 2014.

According to the sunshine lighting operation budget, its LED products accounted for 70% in 2015, and the proportion of energy-saving lamp products will drop to around 30%.

Sunshine Lighting expects that the annual output of LED light sources in 2015 will reach 180 million units, and the annual output of the lamps will reach 60 million units. With the continued investment in raised capital projects, LED production capacity will continue to increase next year.

Intelligent lighting is a direction of sunlight lighting, and Sunshine Lighting believes that “the development of intelligent lighting will take some time. It is still in the first stage, that is, how intelligent lighting replaces the work of traditional lighting and it is achieved through WIFI. The brightness is adjustable and controllable; in the second stage, the lighting is connected with the household appliances to form the Internet of Things; the last is the data service mode, which reflects the problems in the lighting process.”

“In fact, there is a lot of room for development in the field of intelligent lighting. The company has been working hard from research and development to market expansion.” Sunlight Lighting emphasizes.