Sunlight: the pioneer of traditional lighting transformation LED

[Text / Zhao Hui] In the process of development, while promoting development through transformation, adhere to the product, management, technology, channel innovation as a means to adjust the structure, lay the foundation, and strive for the development and transformation of enterprises. In 2013, the old traditional lighting company Sunshine Lighting (600261.SH) handed over a perfect answer.

The total annual operating income reached 3.169 billion yuan, a year-on-year increase of 22.22%, and the net profit attributable to shareholders of listed companies was 232 million yuan, an increase of 10.27% over the previous year. The net cash flow from operating activities increased by 130.45% year-on-year.

Founded in 1995, the private enterprise formerly known as Shangyu Bulb Factory has had a gene for innovation, transformation and development since its establishment.

In July 2000, “Zhejiang Sunshine” A shares were listed on the Shanghai Stock Exchange, and Sunlight Lighting became the first private high-tech listed company in the domestic lighting industry.

As early as 2007, as the top three in the country at the time, Sun Lighting, which is well-known in the domestic and overseas markets for “OEM energy-saving lamp production and export”, has begun to actively explore the transformation of the domestic market.

In 2008, overseas markets were affected by the financial crisis and growth slowed down. At the same time, the domestic market maintained a high-speed growth momentum. Sunlight Lighting is determined to actively develop domestic sales and develop its own brands. We began to vigorously expand the domestic market channels and began a transformation.

According to the annual report data, as of the end of 2010, the company has more than 3,000 distribution outlets, which have penetrated into some county-level cities. Domestic sales revenue increased by 42.12%, and the proportion of operating income increased to 36.06%.

A transformation has seen initial results.

In the transformation of domestic sales, to increase the proportion of independent brands, Sunlight began to enter the LED field in 2008, LED lighting as the focus of industrial upgrading.

In September 2010, the European Union decided to ban incandescent lamps above 75W, and the LED industry was greatly boosted by this influence. Sunlight lighting has also become the first to enter the LED industry.

According to the 2010 annual report, Sunshine Lighting has made the development of the LED industry and improving the LED light source manufacturing level, including the establishment of an LED production base with an area of ​​300 mu in Shangyu, Xiamen; and the acquisition of a 30.1887% stake in Japan's LIREN Company for 16 million yen. Initiatives within.

In 2011, Sunlight's LED lighting products already have a relatively complete product chain and a competitive price advantage. At the same time, the domestic distribution channels were divided into different business models, and the coverage continued to expand to county-level cities, achieving domestic sales of 89.42 million yuan, an increase of 14.27% over the previous year, and the proportion of sales also rose to 38.32%.

“In 2013, LED accounted for 31% of the company's total sales revenue. I hope that LED can reach 40% of this year.” Sun Yong, general manager of Sunlight Lighting, said in an interview with Gaogong LED.

According to Sunshine Lighting's 2013 performance briefing, the company's LED revenue structure in 2013 was 52% for Philips, 30% for other foundries, and 15%-20% for independent brands.

At the performance briefing, Sunshine Lighting said that the future development strategy will be transformed from energy-saving lamps to LEDs, light sources to lamps, OEMs to OEMs and independent brands. The focus in the next few years will be on increasing the proportion of luminaires in revenues while strengthening the expansion of self-owned brands.

"This year, commercial lighting will bear fruit, and home lighting will start quickly." Guan Yong said at the beginning of the year, the high-yield research and development spring emerging industry investment strategy meeting said that in addition to replacing part of traditional lighting, the entire lighting market share They are all zooming in. Opportunities come from industry development and technological advancement.

According to the annual report, the gross profit of Sunshine Lighting's LED business in 2013 increased by 4.69% compared with the previous year. In this regard, Sunshine Lighting said that first of all, the company's cost control is strong, the cost decline is greater than the price decline, and the proportion of LED self-owned brands with higher gross profit margin is further increased.

With the gradual commissioning of the LED fundraising projects of Xiamen and Shangyu, the scale benefits gradually emerged, and the proportion of the profits of Sunlight LED products to the company's net profit reached 40%.

Sunshine Lighting's operating budget for 2014 was 3.9 billion yuan in revenue and 330 million yuan in profit, including 2.1 billion yuan for traditional business and 1.8 billion yuan for LED business. This means that the proportion of LED business revenue in 2014 will increase from 31% in 2013 to 46% in 2014. In 2018, it is estimated that the sales will be 10 billion yuan. Sunshine Lighting said that the plan for the income structure is all LED products, but the energy-saving lamp business will continue to do so.

The statistics of the High-tech LED Industry Research Institute (GLII) show that in 2013, several traditional lighting manufacturers in China have achieved more-than-expected LED lighting business. Sunlight Lighting is one of them. In 2013, the company's LED business revenue doubled year-on-year, and the LED business revenue ratio has already ranked among the top of many traditional lighting manufacturers.

"LED lighting has entered the accelerated replacement period, and the faucet will fully benefit from the peak season. Sunlight has become a stable supplier of LED lighting manufacturers such as Philips, Osram, LOWE, etc., and will fully benefit from the high industry boom; it is expected that the company's annual LED revenue is expected Achieving a doubling of the explosive growth above." Guotai Junan Securities commented in a research report.

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