LED lighting market outlook is worth looking forward to

Green lighting has become the development trend of the lighting industry. Sunlight Lighting's micro-mercury energy-saving lamp projects and LED lighting product projects are in line with the general trend of green lighting industry development. Recently, the Board of Directors of Sunshine Lighting (600261) reviewed and approved the "Proposal on Partially Changed Investment Projects of Raised Capital", which is intended to be one of the projects for raising investment in non-public offering of stocks in 2011 as the “Micromercury Environmental Protection and Energy Saving Lamp Industrialization Project”. Partially changed to "the annual output of 20 million (sets) LED lighting products industrialization project." The bill will be submitted to the general meeting of shareholders for consideration on Thursday.

After years of policy encouragement and market cultivation, energy-saving lamps have replaced incandescent lamps as mainstream products in the lighting industry, and the lighting industry has entered the “energy saving lamp era” in an all-round way. This also means that the energy-saving lamp industry is becoming mature and the industry development is steadily increasing. In contrast, LED lighting belongs to the next generation of lighting products, is in the period of rapid development of the industry, the future LED lighting market growth potential is greater, the market outlook is more worth the wait.

If the fund-raising project is successfully changed, the annual production capacity of the “micro-mercury environmental protection and energy-saving lamp project” will be reduced from 150 million to 75 million, and the amount of funds raised will be reduced from 479.9 million yuan to 210 million yuan. At the same time, the company will use 266.9 million yuan to raise funds for the implementation of "annual production of 20 million (sets) of LED lighting products industrialization projects", the estimated return on investment of 32.68% (after tax).

Recently, the Ministry of Industry and Information Technology issued a draft of the "China's Roadmap for Gradually Reducing the Hg Content of Fluorescent Lamps," requesting a gradual reduction in the mercury content of energy-saving lamps and a complete elimination of the liquid mercury production process. The threshold of energy-saving lamp industry has been improved. Some small-sized enterprises will have difficulty in completing the conversion of liquid mercury to solid mercury process due to limited capital and technical strength. The future production and order of fluorescent lamps will be concentrated in relatively mature large-scale factories. Concentration is expected to increase.

Some market analysts believe that Sunny Lighting began to switch to the solid mercury process years ago. Currently, all of the solid mercury production processes have been realized. In the medium to long term, the industrial concentration brought about by industry standard changes will increase, and the overall market share is expected to increase.