Theme: Industrial Applications
LEDinside traveled to Heshan City, Guangdong Province, China in Q4 2008 to visit the world's lighting manufacturer Zheng Mingli, and to visit its proud lighting showroom. After being settled in Gonghe Town, Heshan City in 1989, Zhen Mingli established the world's largest lighting kingdom through low cost competitiveness.
In the process of visiting the president of Zhen Mingli Fan Banghong, it can be clearly found that Zhen Mingli's progress in the production of LED epitaxial is obviously conservative. It is believed that the LED lighting market is still not fully mature at this stage, but it is still very happy to watch the future LED replace the traditional light source. Ability.
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2009 lighting and lighting market outlook
President Fan believes that the global market is facing a downturn, and the demand in the US market has dropped significantly, which has affected the traditional lighting. Coupled with the comprehensive increase in raw materials and wages in China this year, it is a tough year for smaller traditional lighting factories. It is expected that many traditional lighting manufacturers with poor health will withdraw from the market in the near future.
The traditional lighting lighting market is shrinking, and Zhen Mingli believes that the replacement of LEDs is gradually emerging. Among the bright and beautiful products, Christmas lights and stage lighting are gradually replaced by LED light sources. Recently, LED lamps used in cabinets have become one of the company's hot-selling LED products because of their small size and privacy.
Take Zhenmingli as an example. In 2007, 50% of revenues came from LED-related products. In 2008, the proportion of revenues was as high as 60%. It is estimated that the growth rate of LED products in 2009 will still be as high as 20%, which will accelerate the replacement of tradition. The number of shipments of lighting products.
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LEDs will replace traditional lighting, but it won't be tomorrow
The replacement of LEDs has gradually emerged, but President Fan specifically mentioned that LED lighting is too early to replace traditional lighting. Since the luminous efficiency and consistency of white LEDs are not well solved, if the LED lighting fixtures that meet consumer expectations are hard to be achieved, the cost is very high. Therefore, LED lighting fixtures still cannot compete with traditional energy-saving lamps, HID and other products in terms of cost performance.
As for when to see the lighting market take off, it is still necessary to look at the cost and efficiency of LED lighting. For example, when the LED reaches 150 lumens per watt, it can compete with traditional lighting, and the cost of conversion is reduced by 80% to 90%. Therefore, Zhen Mingli believes that LEDs will replace traditional lighting, but it will not happen tomorrow.
Zhen Mingli progresses in the upstream epitaxy
As for the progress of the true Mingli upstream epitaxy that the LED industry is most concerned about, it can be found in this interview that Zhen Mingli is obviously conservative about the progress of LED upstream epitaxial production. LED Epitaxial was originally expected to be trial production in October, but the progress will be delayed until November. At present, the monthly output of the purchased machine is about 12 million pieces, which is about 400 million pieces in one month after being converted into chips. At present, the average use of light bulbs is about 500-600 million bulbs per month. When the LED epitaxial capacity is fully loaded, the self-sufficiency rate will be over 70%.
Why is Zhen Mingli's attitude towards the expansion of LED epitaxial machines becoming more conservative? The main reason is that the LED lighting market is not yet mature. In the short term, the capital expenditure for LED equipment will come to an end, and then we will observe the market conditions before deciding whether to continue to expand. Production.
President Fan also mentioned that the current LED industry's expectations for the LED lighting market are too high, and blind expansion of the industry is a very dangerous situation. Take the example of selling steaks. The LED industry is like a high-end steak store. After killing a cow that you have raised, you can only pick the most essential part of the beef steak (take the brightest chip to make LED lighting products). The residual value of the remaining parts is very low. But for Zhen Mingli, you can use the whole beef for complete cooking, the best LED for high-power lighting and display, the second time for other applications, and the worst for decorative light source, so the yield can reach 100%. .
Since Zhen Mingli relies on diversified products to obtain its current status, and has not been affected by the LED lighting market, it is estimated that this year's revenue can reach 200 million US dollars. For the outlook for 2009, President Fan believes that although the lighting environment will shrink due to the impact of the big environment, but because of the fast pace of LED replacement, it is estimated that the company's revenue is expected to be the same as in 2008. As for profitability. The cost of raw materials such as copper and aluminum, which are used for lighting, will drop a lot, which will be of positive help to the company's profit next year. President Fan also stressed that the growth of the company in 2009 is still the potential and speed of LED to replace traditional lighting.
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LEDinside view
Since the cost performance of LED lighting fixtures is still not comparable to traditional lighting fixtures, it will take some time for LEDs to replace traditional lighting. At present, there is an excess of LED capacity supply, but the terminal demand has not kept up with the empty window period. I believe that for LED manufacturers, next year will be a tough year. Therefore, LED manufacturers and potential competitors should adjust their expectations for LED over-high, re-examine the nature of products and the needs of consumers, and avoid blind expansion to survive the sluggish winter.
LEDinside traveled to Heshan City, Guangdong Province, China in Q4 2008 to visit the world's lighting manufacturer Zheng Mingli, and to visit its proud lighting showroom. After being settled in Gonghe Town, Heshan City in 1989, Zhen Mingli established the world's largest lighting kingdom through low cost competitiveness.
In the process of visiting the president of Zhen Mingli Fan Banghong, it can be clearly found that Zhen Mingli's progress in the production of LED epitaxial is obviously conservative. It is believed that the LED lighting market is still not fully mature at this stage, but it is still very happy to watch the future LED replace the traditional light source. Ability.
2009 lighting and lighting market outlook
President Fan believes that the global market is facing a downturn, and the demand in the US market has dropped significantly, which has affected the traditional lighting. Coupled with the comprehensive increase in raw materials and wages in China this year, it is a tough year for smaller traditional lighting factories. It is expected that many traditional lighting manufacturers with poor health will withdraw from the market in the near future.
The traditional lighting lighting market is shrinking, and Zhen Mingli believes that the replacement of LEDs is gradually emerging. Among the bright and beautiful products, Christmas lights and stage lighting are gradually replaced by LED light sources. Recently, LED lamps used in cabinets have become one of the company's hot-selling LED products because of their small size and privacy.
Take Zhenmingli as an example. In 2007, 50% of revenues came from LED-related products. In 2008, the proportion of revenues was as high as 60%. It is estimated that the growth rate of LED products in 2009 will still be as high as 20%, which will accelerate the replacement of tradition. The number of shipments of lighting products.
LEDs will replace traditional lighting, but it won't be tomorrow
The replacement of LEDs has gradually emerged, but President Fan specifically mentioned that LED lighting is too early to replace traditional lighting. Since the luminous efficiency and consistency of white LEDs are not well solved, if the LED lighting fixtures that meet consumer expectations are hard to be achieved, the cost is very high. Therefore, LED lighting fixtures still cannot compete with traditional energy-saving lamps, HID and other products in terms of cost performance.
As for when to see the lighting market take off, it is still necessary to look at the cost and efficiency of LED lighting. For example, when the LED reaches 150 lumens per watt, it can compete with traditional lighting, and the cost of conversion is reduced by 80% to 90%. Therefore, Zhen Mingli believes that LEDs will replace traditional lighting, but it will not happen tomorrow.
Zhen Mingli progresses in the upstream epitaxy
As for the progress of the true Mingli upstream epitaxy that the LED industry is most concerned about, it can be found in this interview that Zhen Mingli is obviously conservative about the progress of LED upstream epitaxial production. LED Epitaxial was originally expected to be trial production in October, but the progress will be delayed until November. At present, the monthly output of the purchased machine is about 12 million pieces, which is about 400 million pieces in one month after being converted into chips. At present, the average use of light bulbs is about 500-600 million bulbs per month. When the LED epitaxial capacity is fully loaded, the self-sufficiency rate will be over 70%.
Why is Zhen Mingli's attitude towards the expansion of LED epitaxial machines becoming more conservative? The main reason is that the LED lighting market is not yet mature. In the short term, the capital expenditure for LED equipment will come to an end, and then we will observe the market conditions before deciding whether to continue to expand. Production.
President Fan also mentioned that the current LED industry's expectations for the LED lighting market are too high, and blind expansion of the industry is a very dangerous situation. Take the example of selling steaks. The LED industry is like a high-end steak store. After killing a cow that you have raised, you can only pick the most essential part of the beef steak (take the brightest chip to make LED lighting products). The residual value of the remaining parts is very low. But for Zhen Mingli, you can use the whole beef for complete cooking, the best LED for high-power lighting and display, the second time for other applications, and the worst for decorative light source, so the yield can reach 100%. .
Since Zhen Mingli relies on diversified products to obtain its current status, and has not been affected by the LED lighting market, it is estimated that this year's revenue can reach 200 million US dollars. For the outlook for 2009, President Fan believes that although the lighting environment will shrink due to the impact of the big environment, but because of the fast pace of LED replacement, it is estimated that the company's revenue is expected to be the same as in 2008. As for profitability. The cost of raw materials such as copper and aluminum, which are used for lighting, will drop a lot, which will be of positive help to the company's profit next year. President Fan also stressed that the growth of the company in 2009 is still the potential and speed of LED to replace traditional lighting.
LEDinside view
Since the cost performance of LED lighting fixtures is still not comparable to traditional lighting fixtures, it will take some time for LEDs to replace traditional lighting. At present, there is an excess of LED capacity supply, but the terminal demand has not kept up with the empty window period. I believe that for LED manufacturers, next year will be a tough year. Therefore, LED manufacturers and potential competitors should adjust their expectations for LED over-high, re-examine the nature of products and the needs of consumers, and avoid blind expansion to survive the sluggish winter.
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