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In the recent market, the performance of the LED industry is eye-catching. We believe that LED development has entered the fast lane. Compared with traditional light sources, LED has many obvious advantages such as high luminous efficiency, no pollution, long service life, etc., and is setting off a new green revolution in the field of lighting. Due to the high power consumption and short life span of incandescent lamps, governments have launched plans to eliminate incandescent lamps. 2014 will be the final stage for all major countries in the world to enter the incandescent lamp abolition plan. A large number of incandescent lamp replacement markets are supported by governments. It will also force the growth of LED lighting products. And now, LEDs account for only one in the world, and we think it has a lot of room for improvement. From the perspective of market product quotation, the price of LED products continues to decline, and some product prices are close to energy-saving lamps, and the cost-effective advantage is outstanding.
At present, the LED industry has entered the traditional peak season in April. As the industry integration continues, the price drop will put pressure on the company's gross profit level, and the LED industry will gradually differentiate. From the past capacity competition to technical competition, cost competition, industry concentration Degree will increase. Therefore, we are optimistic about the future upstream chip leading enterprises with technological advantages, scale advantages and cost advantages, while downstream we are optimistic about enterprises with channel advantages and more brand value added in the application field. In addition, companies that produce supporting facilities in the industrial chain such as optical inspection and power supply can also pay due attention. In the future, LEDs will see better growth in the field of automotive lighting.