The Gross Margin Of Some Products Is Over 70% The King Of The Sea Is Like A Fish In Water In The Special Lighting Market.

- May 10, 2018-

The "development plan" of "semiconductor lighting industry" in 13th Five-Year, which was issued in 2017, made clear the development goal of the semiconductor lighting industry in 2020, which required the key technology of semiconductor lighting to break through, the industrial scale expanded steadily, and the industrial concentration increased gradually. Among them, the special environment lighting market will also usher in new development opportunities.

It is understood that special environmental lighting equipment must meet the requirements of normal operation under the environment of inflammable, explosive, strong vibration, strong impact, strong corrosion, high and low temperature, high humidity, high pressure, electromagnetic interference, wide voltage input and so on. The application of LED in the special environment lighting field will be able to better meet the customers' special light and letter. Special lighting requirements such as number, emergency, energy saving, safety, environmental protection, health and intelligence.

In view of the "development plan of the semiconductor lighting industry" in 13th Five-Year, the marine king of the domestic lighting manufacturers (002724) has a new development opportunity. Since 2016, the new products have been required to use LED. Indeed, the share of LED products has been increasing over the past two years.

According to the data, the main business of the marine king is to specializes in the R & D, production, sales and service of special environmental lighting equipment. It covers three series of fixed lighting equipment, mobile lighting equipment and portable lighting equipment, including more than 200 models, which are widely used in power, metallurgy, railway, oilfield, petrifaction, public security. Fire, coal, troops, ports, stadiums, civil aviation, ships and machinery manufacturing are important industries related to the national economy and the people's livelihood.

In the past year, king of the sea deepened its own management and TQM, based on customer needs, gradually set up more comprehensive advantages in the field of lighting, combined with new technologies in the field of Internet of things and lighting, to provide customers with targeted functional products and solutions to improve customer business benefits.

LED found that the total revenue of the ocean king in 2017 was 1 billion 97 million yuan, up 18.60% from the previous year, and the net profit attributable to the shareholders of listed companies was 152 million yuan, up 36.61% over the previous year. Among them, the mobile lighting equipment revenue is 196 million yuan, accounting for 17.91% of the total operating income, the gross profit rate is 70.65%, the portable lighting equipment revenue is 447 million yuan, accounting for 40.74% of the total operating income, and the gross profit rate is 71.26%.

Mao Lichao 70% is amazing, many people will question, why is the ocean King's gross profit margin so high?

Tang Xiaofen, director of ocean king and director of finance, explained, "it is mainly because the company adopts direct selling mode adapted to large institutional customers. More than 85% of the customer groups are large institutional customers, mainly distributed in power, metallurgy, railway, oil field, petrochemical and other industries, with high security for lighting equipment under the special environment. Full and stability requirements. To meet the differentiated needs of customers, we mainly adopt the direct selling mode and provide higher value-added services. In view of the special environmental lighting requirements of customers in various industries, the service engineers are in the long standing point of the customer's location to provide the customers with perfect pre-sale, sale and after sale service. While the peers listed companies mainly adopt the dealer mode.

It is worth noting that the special environment lighting industry is a subdivision market in the lighting industry, the current market demand is relatively scattered, industry differences are relatively large, industry concentration is low, there are not many enterprises on a certain scale, and most small and medium-sized lighting enterprises are the main competitive segments. Especially in recent years, some enterprises in the downstream industry have begun to implement the centralized bidding process, and many special environment lighting enterprises take the low price strategy as the main competitive means.

At the same time, because of the higher gross profit in the special lighting market, some large enterprises engaged in commercial lighting have gradually intervened in the special environment lighting industry, making the competition increasingly fierce.

In response to such a market environment, Tang Xiaofen admitted that the king of the sea has done a good job of coping strategies. It is embodied in the following 4 aspects:

1, R & D: continue to maintain highly effective R & D team and industry-leading technology level;

2. Sales and service: continuous improvement of sales, service system and quick response to the market.

3, quality management: deepen the whole staff, the whole process, comprehensive quality management system;

4, product aspects: maintain the advantages of product variety, respond quickly to the individual needs of customers, and organize production according to the diversified needs of customers.

In addition, the equipment provided by the king of the sea provides a consistent and stable lighting experience under the conditions of flammable, explosive, strong vibration, strong impact, strong corrosion, high and low temperature, high humidity, high pressure, electromagnetic interference, wide voltage input and so on. It can meet special lighting, signal, emergency and other special lighting requirements, and meet energy saving and safety. Environmental protection, health, intelligence, personalization and other aspects of the requirements, performance reached the leading level in the industry. At the same time, by virtue of the rich variety of products, the king of the sea quickly responds to the customer's individualized demand, organizes production according to the diversified needs of the customer, and occupies the dominant position in the competition and acquisition of order. Therefore, we are not afraid of other competitors to join the layout.

In fact, despite the increasingly fierce competition in the special environment lighting industry, there are many new opportunities for development. For example, the reform of state-owned enterprises will release a lot of reform dividends, which makes the ocean king "power construction" and "The Belt and Road" strategy will lead to substantial growth in fixed asset investment. In addition, the "13th Five-Year plan", "made in China 2025" and "energy development action plan 2016-2020" will also bring opportunities to the king of the sea.

In May 7th, at the 2017 annual performance meeting of the king of the sea, Zhou Mingjie, chairman of the ocean king and general manager, said, "according to the company's overall strategy of 2018-2025 years, we will take the vision and mission of the company as a traction, dig into the traditional market lighting demand, and make the new field of technology become the pillar of enterprise development and perfect the group." "Weaving operation system, integrating with suppliers, discovering and solving the problem of independent operation, carrying forward the struggle spirit of the middle and high level leadership team and realizing the company's operating goal in 2025".

In a word, with the continuous promotion of LED market penetration and the guidance of relevant national strategies, the future of special lighting, such as mobile lighting and portable lighting, is generally promising.