China's LED street lights energy-saving and environmental protection and unlimited business opportunities

Foreword: Li Bingjie, general manager of Jingdian, pointed out at the shareholders meeting that China is active in the operation of LED street lights with power saving and green lighting. Crystal Power will regard this as an important growth driver next year.
In the recent optoelectronic exhibition, various manufacturers have shouted out that China's LED street lights have great business opportunities. The reason is that the Chinese government announced the "National Medium- and Long-Term Science and Technology Development Plan (2006~2020)" on February 9, 2006. The inclusion of high-efficiency, energy-saving, long-life semiconductor lighting (LED) in the first priority area has caused widespread concern. After a year of fermentation, business opportunities have slowly emerged.

Since the energy consumed by lighting in mainland China is extremely amazing, if the outdoor lighting is changed to LED lighting, the lighting power consumption will be reduced by 60%, and the effect is remarkable. Due to the huge potential of LED lighting to save energy, it has become the focus of China's energy-saving work. Therefore, China is starting to adopt LED lighting products to replace the traditional high-pressure sodium lamps.

â—†LED power saving 60% 2008 business opportunities

China's current energy is mainly from thermal power generation, while thermal power generation uses oil and coal. As the price of oil continues to soar, the cost of power generation increases, and coal combustion produces a large amount of carbon dioxide, causing a greenhouse effect. In order to solve the energy problem, China is mainly heading in two directions: developing new energy and energy conservation, and the goal is to provide 15 to 30% of energy demand from 2010 to 2012.

According to the research of the national ticket securities, due to the lack of power in mainland China, the use of LED street lamps has two advantages of energy saving and environmental protection. Therefore, there is a huge demand for LED street lamps. In 2007, there is a great opportunity for the first year of LED street lamps. In the current situation that the relevant regulations are still being formulated, it is expected that rural roads or park lighting will be introduced in advance. This part will be mainly based on products below 60W. It is expected that some business opportunities will begin to be seen in the second half of 2007. As for the main road lighting above 10 0W, 2007 is a test stage. At present, more than 30,000 street lamps in Shanghai will be converted into LEDs as light sources. After being tested, they will gradually spread out from the first-tier cities. It is expected that there will be a relatively large amount in 2008. The shipment, this part of the potential business opportunities are strong.

Taiwan's LED upstream and downstream supply chain is quite complete, plus optical, thermal, circuit control and other related industries also have quite good technology, have advantages in the development of LED street lights, in addition to the Chinese market is also familiar with other manufacturers, is expected to achieve the majority China LED street light orders.

At present, manufacturers have announced that they have received four orders: providing die, die package, system assembly, and providing LED modules (see table). The system has the highest gross profit margin, but the competition is also large. Although the three types are lower in gross profit, the operational stability is relatively high.

Since the current High Power LED used in LED street lamps is at an early stage of development, the price is quite high. For a 60W lamp, the part of the LED light source is 12,000 yuan, and the price of the whole set of lamps is about 20,000 yuan, while the traditional high-pressure sodium lamp is about As long as 6000 yuan, at first glance, there is a very large price difference between the two, but with the advancement of technology, the LED die will have a price reduction of about 20% per year, coupled with the integration of LED new street lamps, the cost will decrease. After 1 year, the cost gap between LED and traditional high-pressure sodium lamps will be reduced to less than 2 times. If the additional electricity expenses and maintenance costs are taken into account, the advantages of LED will appear. For areas like China that want to develop industries, replacing existing lighting with LED lighting will solve the problem of tight energy supply, and business opportunities can be expected.

â—† Received Chinese street lamp orders to detonate in advance

At present, the demand for LED street lamps is detonated in advance, and Hon Hai Group has obtained large orders for LED street lamps in mainland China, forcing Hon Hai to actively enter the LED industry, including Hongzhun and unlisted Pei Xin, all of which are the main force specializing in LED business opportunities.

In addition, Yuyuan Optoelectronics has signed a letter of intent for cooperation with the Shanghai Railway Corporation and the Changzhou Municipal Government at the end of March, and will lay nearly 20,000 LED street lamps for the future. It is understood that Yuyuan Optoelectronics has developed high-power LED lighting system products, compared with traditional street lamps, can save 50% energy, in order to grab the mainland LED street lamp market, Yuyuan also set up LED lighting system business unit, due to the unique patented energy-saving LED The design of the street lamp system proves that the LED lighting technology can comply with the International Road Lighting Code (IESNA), and replaces the indicators of traditional mercury lamps or high-pressure sodium lamps with LEDs.

LED packaging giant Shunhong has also successfully entered the mainland LED street lamp market, and has obtained the 3rd annual contract of the largest equipment manufacturer. The part of the street lamp will contribute at least 800 million yuan. It is expected to start shipping in July. After that, it can drive strong growth in single-month revenue.

â—† Olympic LED lighting

Hongqi Technology is an LED lighting business focus on the Olympic sports venues. Because the LED brightness specifications of sports venues are much higher than street lights, the price of a packaged LED is about 30 times that of street lamps, such as receiving baseball field LED lighting. Equipment, a single LED unit price of up to 3 US dollars, a lamp with about 100 LEDs, the unit price will be NT$ 10,000, the gross profit is higher than the LED street light, under the attention of lighting orders, Hong Qi revenue has the opportunity to create new highs.



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