Industry News--GuDian Furniture industry.

Chinese Furniture Export Has Both Happiness and Sadness in Connecting Rails With International Market
December.02.2010

Based on huge international furniture market, the domestic furniture industry begins to actively develop overseas markets after 10 years development, at the same time contest for domestic market share. At present, the exportation of China's furniture has expanded to India, Pakistan, Southeast Asia, the Middle East, Africa and other countries except the world's three major furniture market -- the United States, Japan and Europe. Recently General Administration of Customs has released a set of latest data: from January to June in the first half of 2010, China's furniture exports amounted to 15.972 billion U.S. dollars, up 32.4% over last year. After entering 2010, the Euro-rate once fell sharply, which even remained the same with last year. However, under this shock, Chinese furniture exports have seen a gratifying increase, which greatly inspired the morale of Chinese furniture industry. Therefore, both domestic economists and media hold an optimistic attitude on the furniture exports in the second half of 2010.

But under the bewildering development trend of global economy in nowadays, whether the exportation that ever regarded as one of the troika to increase Chinese economy can always become a source of wealth in China chairs manufacturing? Whether Chinese furniture industry, the export value of which accounts for more than 30% of the total sales all the time, can really meet the springtide of export trade? Whether the export road of China's furniture can be so flat in the second half of the year?

The external competitive pressures are increasing gradually, but the internal powers that support the furniture export to increase is clearly insufficient. While it is pleased to see the furniture export data of the first half-year released by the General Administration of Customs uv light, but the growth rate is obtained based on the first half of 2009, when is the most deeply affected year by the financial crisis. As the first half of 2009 is the gloomiest period for Chinese furniture export, the reduction of furnitures export amount has decreased the base of comparison. Meanwhile, the RMB appreciation is the incentive for the growth of furniture exports. After the financial crisis, many domestic furniture export enterprises have gave up US Dollars, and began to use RMB as trade settlement currency, which also has promoted the increase of Chinese furniture export.

In this connection, the reporter has interviewed Mr. Zhu Changling, the vice chairman of China Furniture Association. He said the export growth in the first half-year is not synchronized with the kitchen utensil quantity and price rise, although the exports show growth, but the total exports of Chinese furniture don't increase. In the not relieved export volume, there is a certain percentage of filling inventory phenomenon existing. The storage consumed during the financial crisis of European and American furniture dealers will fill their stocks. However, from the perspective of the consumption ability that can support long-term stable growth, there has been no signs of recovery in European and American furniture consumer market, and there will be no large number of orders after replenishment in short term.

External and internal troubles can drive Chinese export-oriented outdoor furniture enterprises to improve themselves. In the furniture-manufacturing base in the Yangtze River Delta, where gathered many export enterprises, the labor pains and transformation of Chinese furniture exports are being further bred. In addition to the introduction of modern management, which is a platitude in Chinese furniture industry, reporters saw a lot of the Yangtze River Delta furniture manufacturers are continually extending their product line. At the same time, the furniture companies in Yuhuan are working tightly together to develop emerging markets--the Middle East, which can fill the insufficient demand that caused by the weakness of European and American markets.

Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products.

Competition in China Furniture Market
November.08.2010

With the rapid development of furniture industry in recent years, the competition in China furniture market has entered an ultra-competition state. So we should fully realize that our former success and effective strategy and means may not be workable in this new outdoor furniture marketing situation, we should be clearheaded and rational.

The homogenization is obvious increasingly, the degree and time of product differentiation is becoming limited: different furniture factories have same style, design and color, even the image packaging of some manufacturers seems like twins, and next is the price war round after round.

As the price of terminal intensivism, channels concentration, furnitures brand centralization and other marketing elements increasing, the operating costs of enterprises also have increased. The threshold is increasingly high, the breakeven point and key value that we operate in regional market is getting higher, and the risk is growing. High risk may not lead to high returns, many furniture companies and specialty stores seem very busy after they have laid a good foundation for the market, but in fact they have earned very little money when doing account in the end of the year.

Now, the integrated growth of China furniture consumption is about 12%, while furniture shopping malls are like bamboo shoots after a spring rain in these two years, the expansion rate of well-known uv lamp brand furniture mall is between 30% and 40%! And the rental of furniture mall has increased 10% to 15%. The contrast of these figures is far more than the GDP growth rate of real estate and national economy and sales growth rate of furniture specialty stores.

In recent years, especially the chairs anti-dumping and the financial crisis two years ago have influenced furniture export industry obviously. These manufacturers quickly realized that they can not completely depend on exports sale, they should learn to walk with double legs that is export sale coming with domestic sale, they started to develop domestic furniture market in recent two years by product development, image packaging, marketing plan, attending exhibitions, market promotion and so on. Many brands suddenly increased in China kitchen utensil market result in domestic marketers and dealers who have many years experience are not familiar with the concept of new furniture brand, of course part of domestic solar water heater market share is divided.

Dealers or manufacturers who want to have a relatively good position in furniture market will privately give red packets to the important principal that invited by property, and find a reason to directly withdraw the original furniture brands who will join in, this is a open secret in the industry.

In a word, in my opinion, China furniture industry will usher the second rapid development period in the next 3 to 5 years under the big background of the furniture industry gradual shift and national macro-economic. The task of this period is not primarily the amount expansion, but the quality improvement. Furniture industry will face new challenges in the next five years such as the tight supply of wood and other furniture raw materials resources, the increased price of energy and transport, the strengthening of environmental requirements and the shortage of technical staff and manager, which are all restrictions for industry development. Therefore, enterprises should transform traditional industry with high technology and change the solar mode of growth, and the key is improving the quality of product and marketing innovation.

Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products.

China Lighting Industry Should Find Their Own Way in Replication
October.25.2010

In today's lighting industry, enterprises always shout they will launch new product, as well as some often shout their products are copied by others, the author can't deny that a considerable portion of their products come from the innovation of genuine talent, but many of them fish in troubled waters and copy innovation. Of course it is just a simple copy, the hard core of innovative lighting is difficult to learn only through simple imitation. In fact, the harm caused by this copy is far less than the surface. Just from the consumer's point of view, the aesthetic experience brought by uv lamp is no longer unique and novel, so-called innovation of lamps only bring dull sense that due to the sameness everywhere, so its attraction decreases because of lacking distinctive idea and creativity. At the same time the diverse air cleaner demands of consumer groups are also ignored, it is more serious that consumer's overall satisfaction on lighting industry has decreased, which also has resulted lighting industry's overall combat capability and reputation both declining.

If such vicious competition becomes increasingly intense, it will not only affect the lamps actuality, but also restrict the quality and standards of lighting industry development--the sameness of lighting will cause great waste of resources. Even the so-called innovators can achieve greater efficiency, but it is just temporary, because the consequences brought by homogenization is serious, more importantly, the brand and personality will loss, furthermore the industry development space and operating revenue will also be impacted. Moreover, the most fundamental is that it will directly destroy the innovative capacity of lamp industry's employees, and lead to increasing weakening.

What make the author delighted is that many ambitious people of industries have take up legal weapons to protect their legal women garments rights, and also has achieved interim victory; however, the strength is far from enough for so-called innovators, so the author hopes that more lamps manufacturers who suffered infringement can take actions and legal sanctions will be imposed to these so-called innovators, and make their efforts to eliminate the unhealthy competition in the outdoof furniture industry and build industrial standard.

The differentiation competition or innovation should be the internal demand of healthy operation in the whole lighting industry eco-development, which also is an important basis for competitors to establish themselves in an unassailable position. From the overall social environment and led market environment perspective, the innovation needs to be encouraged; from the micro-environment of light enterprise, innovation needs to be encouraged much more, particularly institutionalized encouragement. Therefore, the creation of innovative mechanisms is a realistic way for innovating lighting and ensuring innovative tattoo machine kits quality and efficiency. At the same time, the management of innovative human resources and the implementation of personnel policy also should be strengthened; relevant government departments should strengthen market supervision and play an active role to guide enterprises.

Above provided by SelectChina.com, and find more China lighting Manufacturers / China lighting Products.

The Double Dip of China Furniture Industry Is Good for Development
October.14.2010

The double dip of China's furniture industry that correspond to the economic trends can be said as a very bad news, when many difficult problems need to be solved urgently, China's furniture industry which has just recovered may be impacted by the double dip, and it will bring more difficulties to enterprises. Some industry experts also said that, the double dip of China's furniture industry has more advantages than disadvantages, because Chinese furniture industry presents a disordered development state, and most enterprises have lower quality, they mainly rely on large amount and low price or a special resource advantage to make profit. The double dip will eliminate some enterprises again, and it is favourable for the whole industry development.

Undoubtedly the double dip has brought many difficulties to enterprises, but the advantage is that the outdoor furniture industry is upgraded. At present China's furniture industry has no core values, for exported furniture, most Chinese furniture enterprises don't have their own brands and terminal control in foreign countries, so they can gain the trust of buyers only through their good quality, low price and so on. As for domestic enterprises, most of their brands are middlemen brands and they don't have general consumption brands, they excessively rely on channel construction to open up the markets, but the real method for enterprises to improve the product market share is the creation of a general consumption brand. As far as the uv lamp product itself is concerned, China's furnitures designs are disordered. They not only don't understand the cultural connotation of European and American style original designs, but also don't know the compatible absorption and how to make foreign things serve China, except chairs producing according to the orders their original designs are very few. On the inheritance of Chinese traditional furniture, returning to the ancients has become the mainstream, but the products interpretation which make the past serve the present and advance with the times still float on the surface.

The systemic problems also reflect in the circulation from the production process to the consumption process of Chinese furniture, on the one hand the logistics system is imperfect, which result in long time on the way and too much wasting; on the other hand, the distribution costs are high, due to the higher cost in all processes the furniture price is generally high. Therefore, the sale of manufacturing enterprises has reduced relatively just because of the high price. The most important aspect is that, the structure of China's furniture circulation process is more chaotic and the connection between the upper and lower process is not scientific.

Nowadays the resources are decreasing increasingly and the economic indicators are worrying, and it is also a critical moment to test the viability of enterprises. China's furniture industry will also fluctuate with the market trend and may have the double tip, which will further narrow the enterprises living space. The enterprises who live on the excessive relaxed environment for a long time will certainly have more difficulties or be eliminated, and the industry would like to see it, after all, without these enterprises, a healthy and orderly development of China's furniture industry can be achieved.

Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products.

China LED Industry Speeding Up Development
September.27.2010

From investigation and some light industry seminars that recently held in several areas by senior engineer LED, the reporter knew the phenomenon that the VC institutions rush to invest LED items are very many, and even appears the situation that you still can’t enter into it even if you have plenty money. A financing case happened in Wuhan AquaLite Photoelectric Technology Co., Ltd. this year was a classic portrayal of LED industry financing stories. As the domestic largest professional manufacturer of producing high-brightness and high-power white LED power chip, Wuhan AquaLite carried out the third round, a total of 150 million yuan financing plan, which quickly attracted a number of institutional investors. Many institutions who want to become shareholders were turned down outside such as Hunan New Energy and Industrial Venture Capital Fund.

At present the valuation of led lighting industry is not low when calculate according to static valuation. Mr. Zhang Xiaofei, the senior engineer LED CEO, said there are different valuation methods for different companies. Take a large and mature company with annual output from 50 million to 100 million yuan as an example, it can be valuated usually according to the next 3 to 5 years' net assets, net assets income ratio and price-earnings ratio. It is usually as 5 to 8 times as the net assets, also it may be more than 10 times. Part valuation of Wuhan lamps AquaLite is based on price-earning ratio. Although it has turned losses into gains formally in the end of this year, but the additional price of Wuhan AquaLite is 5 yuan per share. The basis is that in 2012 the profit is expected as about 1 yuan per share and it plans to be listed in the next 3 years, so the additional price will be about 5 yuan per share, which is programmed as 20 times as price-earnings ratio after listing.

For this, Mr. WU Zhihong, the chairman of Wuhan AquaLite is obviously regret than joy, said that outdoof furniture was sold cheaply, the price will not be this if we can have the financing half a year later. When formulating the financing project we have not made profit yet, now the market situation is well and Wuhan AquaLite also has went out of the break-even point. Mr. Zhang Xiaofei said this is not an individual phenomenon, with the support policy implementation and market heating since the second quarter of this year, the profit of LED lamp industry has increased a lot or turned losses generally. Therefore, now when enterprises have the financing, they should considering not only the historical compound annual growth rate, but also several factors that influence air cleaner industry and enterprises speeding up their development and growth, the premium rate is usually much higher than six months or even a quarter ago.

In this regard, Mr. Wei Zhansheng, the senior manager of Hunan New Energy and Industrial Venture Capital Fund, he understood this and said, compared with the simplex financial shares, LED companies pay more attention on the resources that the investors owned. For example, Jiuzhou Group that is introduced by Wuhan AquaLite has resources of LED packaging industry development, so it has quickly become Wuhan AquaLite downstream products partner. After they join together, it will help Wuhan AquaLite become bigger and stronger.

Several enterprises think that financing is used to expand production capacity. When reporter asked whether China LED lighting industry will follow the footsteps of solar cells substantial excess production capacity with the expansion pace accelerating, the industry seems not worried. Wei Zhansheng said, China is already the world largest solar cell manufacturing base, and LED lighting is still far from this stage. In addition, the demand for solar cell industry is mainly from overseas, so it will has great impact by financial crisis; and the domestic demand for LED lighting is huge, so it is not easy to be impacted seriously by outside.

Above provided by SelectChina.com, and find more China lighting Manufacturers / China lighting Products.

Chinese Furniture Export Has Both Happiness and Sadness in Connecting Rails With International Market December.02.2010 Based on huge international furniture market, the domestic furniture industry begins to actively develop overseas markets after 10 years development, at the same time contest for domestic market share. At present, the exportation of China's furniture has expanded to India, Pakistan, Southeast Asia, the Middle East, Africa and other countries except the world's three major furniture market -- the United States, Japan and Europe. Recently General Administration of Customs has released a set of latest data: from January to June in the first half of 2010, China's furniture exports amounted to 15.972 billion U.S. dollars, up 32.4% over last year. After entering 2010, the Euro-rate once fell sharply, which even remained the same with last year. However, under this shock, Chinese furniture exports have seen a gratifying increase, which greatly inspired the morale of Chinese furniture industry. Therefore, both domestic economists and media hold an optimistic attitude on the furniture exports in the second half of 2010. But under the bewildering development trend of global economy in nowadays, whether the exportation that ever regarded as one of the troika to increase Chinese economy can always become a source of wealth in China chairs manufacturing? Whether Chinese furniture industry, the export value of which accounts for more than 30% of the total sales all the time, can really meet the springtide of export trade? Whether the export road of China's furniture can be so flat in the second half of the year? The external competitive pressures are increasing gradually, but the internal powers that support the furniture export to increase is clearly insufficient. While it is pleased to see the furniture export data of the first half-year released by the General Administration of Customs uv light, but the growth rate is obtained based on the first half of 2009, when is the most deeply affected year by the financial crisis. As the first half of 2009 is the gloomiest period for Chinese furniture export, the reduction of furnitures export amount has decreased the base of comparison. Meanwhile, the RMB appreciation is the incentive for the growth of furniture exports. After the financial crisis, many domestic furniture export enterprises have gave up US Dollars, and began to use RMB as trade settlement currency, which also has promoted the increase of Chinese furniture export. In this connection, the reporter has interviewed Mr. Zhu Changling, the vice chairman of China Furniture Association. He said the export growth in the first half-year is not synchronized with the kitchen utensil quantity and price rise, although the exports show growth, but the total exports of Chinese furniture don't increase. In the not relieved export volume, there is a certain percentage of filling inventory phenomenon existing. The storage consumed during the financial crisis of European and American furniture dealers will fill their stocks. However, from the perspective of the consumption ability that can support long-term stable growth, there has been no signs of recovery in European and American furniture consumer market, and there will be no large number of orders after replenishment in short term. External and internal troubles can drive Chinese export-oriented outdoor furniture enterprises to improve themselves. In the furniture-manufacturing base in the Yangtze River Delta, where gathered many export enterprises, the labor pains and transformation of Chinese furniture exports are being further bred. In addition to the introduction of modern management, which is a platitude in Chinese furniture industry, reporters saw a lot of the Yangtze River Delta furniture manufacturers are continually extending their product line. At the same time, the furniture companies in Yuhuan are working tightly together to develop emerging markets--the Middle East, which can fill the insufficient demand that caused by the weakness of European and American markets. Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products. --------------------------------------------------------------------------------------------------------------------- Competition in China Furniture Market November.08.2010 With the rapid development of furniture industry in recent years, the competition in China furniture market has entered an ultra-competition state. So we should fully realize that our former success and effective strategy and means may not be workable in this new outdoor furniture marketing situation, we should be clearheaded and rational. The homogenization is obvious increasingly, the degree and time of product differentiation is becoming limited: different furniture factories have same style, design and color, even the image packaging of some manufacturers seems like twins, and next is the price war round after round. As the price of terminal intensivism, channels concentration, furnitures brand centralization and other marketing elements increasing, the operating costs of enterprises also have increased. The threshold is increasingly high, the breakeven point and key value that we operate in regional market is getting higher, and the risk is growing. High risk may not lead to high returns, many furniture companies and specialty stores seem very busy after they have laid a good foundation for the market, but in fact they have earned very little money when doing account in the end of the year. Now, the integrated growth of China furniture consumption is about 12%, while furniture shopping malls are like bamboo shoots after a spring rain in these two years, the expansion rate of well-known uv lamp brand furniture mall is between 30% and 40%! And the rental of furniture mall has increased 10% to 15%. The contrast of these figures is far more than the GDP growth rate of real estate and national economy and sales growth rate of furniture specialty stores. In recent years, especially the chairs anti-dumping and the financial crisis two years ago have influenced furniture export industry obviously. These manufacturers quickly realized that they can not completely depend on exports sale, they should learn to walk with double legs that is export sale coming with domestic sale, they started to develop domestic furniture market in recent two years by product development, image packaging, marketing plan, attending exhibitions, market promotion and so on. Many brands suddenly increased in China kitchen utensil market result in domestic marketers and dealers who have many years experience are not familiar with the concept of new furniture brand, of course part of domestic solar water heater market share is divided. Dealers or manufacturers who want to have a relatively good position in furniture market will privately give red packets to the important principal that invited by property, and find a reason to directly withdraw the original furniture brands who will join in, this is a open secret in the industry. In a word, in my opinion, China furniture industry will usher the second rapid development period in the next 3 to 5 years under the big background of the furniture industry gradual shift and national macro-economic. The task of this period is not primarily the amount expansion, but the quality improvement. Furniture industry will face new challenges in the next five years such as the tight supply of wood and other furniture raw materials resources, the increased price of energy and transport, the strengthening of environmental requirements and the shortage of technical staff and manager, which are all restrictions for industry development. Therefore, enterprises should transform traditional industry with high technology and change the solar mode of growth, and the key is improving the quality of product and marketing innovation. Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products. ----------------------------------------------------------------------------------------------- China Lighting Industry Should Find Their Own Way in Replication October.25.2010 In today's lighting industry, enterprises always shout they will launch new product, as well as some often shout their products are copied by others, the author can't deny that a considerable portion of their products come from the innovation of genuine talent, but many of them fish in troubled waters and copy innovation. Of course it is just a simple copy, the hard core of innovative lighting is difficult to learn only through simple imitation. In fact, the harm caused by this copy is far less than the surface. Just from the consumer's point of view, the aesthetic experience brought by uv lamp is no longer unique and novel, so-called innovation of lamps only bring dull sense that due to the sameness everywhere, so its attraction decreases because of lacking distinctive idea and creativity. At the same time the diverse air cleaner demands of consumer groups are also ignored, it is more serious that consumer's overall satisfaction on lighting industry has decreased, which also has resulted lighting industry's overall combat capability and reputation both declining. If such vicious competition becomes increasingly intense, it will not only affect the lamps actuality, but also restrict the quality and standards of lighting industry development--the sameness of lighting will cause great waste of resources. Even the so-called innovators can achieve greater efficiency, but it is just temporary, because the consequences brought by homogenization is serious, more importantly, the brand and personality will loss, furthermore the industry development space and operating revenue will also be impacted. Moreover, the most fundamental is that it will directly destroy the innovative capacity of lamp industry's employees, and lead to increasing weakening. What make the author delighted is that many ambitious people of industries have take up legal weapons to protect their legal women garments rights, and also has achieved interim victory; however, the strength is far from enough for so-called innovators, so the author hopes that more lamps manufacturers who suffered infringement can take actions and legal sanctions will be imposed to these so-called innovators, and make their efforts to eliminate the unhealthy competition in the outdoof furniture industry and build industrial standard. The differentiation competition or innovation should be the internal demand of healthy operation in the whole lighting industry eco-development, which also is an important basis for competitors to establish themselves in an unassailable position. From the overall social environment and led market environment perspective, the innovation needs to be encouraged; from the micro-environment of light enterprise, innovation needs to be encouraged much more, particularly institutionalized encouragement. Therefore, the creation of innovative mechanisms is a realistic way for innovating lighting and ensuring innovative tattoo machine kits quality and efficiency. At the same time, the management of innovative human resources and the implementation of personnel policy also should be strengthened; relevant government departments should strengthen market supervision and play an active role to guide enterprises. Above provided by SelectChina.com, and find more China lighting Manufacturers / China lighting Products. ----------------------------------------------------------------------------------------------- The Double Dip of China Furniture Industry Is Good for Development October.14.2010 The double dip of China's furniture industry that correspond to the economic trends can be said as a very bad news, when many difficult problems need to be solved urgently, China's furniture industry which has just recovered may be impacted by the double dip, and it will bring more difficulties to enterprises. Some industry experts also said that, the double dip of China's furniture industry has more advantages than disadvantages, because Chinese furniture industry presents a disordered development state, and most enterprises have lower quality, they mainly rely on large amount and low price or a special resource advantage to make profit. The double dip will eliminate some enterprises again, and it is favourable for the whole industry development. Undoubtedly the double dip has brought many difficulties to enterprises, but the advantage is that the outdoor furniture industry is upgraded. At present China's furniture industry has no core values, for exported furniture, most Chinese furniture enterprises don't have their own brands and terminal control in foreign countries, so they can gain the trust of buyers only through their good quality, low price and so on. As for domestic enterprises, most of their brands are middlemen brands and they don't have general consumption brands, they excessively rely on channel construction to open up the markets, but the real method for enterprises to improve the product market share is the creation of a general consumption brand. As far as the uv lamp product itself is concerned, China's furnitures designs are disordered. They not only don't understand the cultural connotation of European and American style original designs, but also don't know the compatible absorption and how to make foreign things serve China, except chairs producing according to the orders their original designs are very few. On the inheritance of Chinese traditional furniture, returning to the ancients has become the mainstream, but the products interpretation which make the past serve the present and advance with the times still float on the surface. The systemic problems also reflect in the circulation from the production process to the consumption process of Chinese furniture, on the one hand the logistics system is imperfect, which result in long time on the way and too much wasting; on the other hand, the distribution costs are high, due to the higher cost in all processes the furniture price is generally high. Therefore, the sale of manufacturing enterprises has reduced relatively just because of the high price. The most important aspect is that, the structure of China's furniture circulation process is more chaotic and the connection between the upper and lower process is not scientific. Nowadays the resources are decreasing increasingly and the economic indicators are worrying, and it is also a critical moment to test the viability of enterprises. China's furniture industry will also fluctuate with the market trend and may have the double tip, which will further narrow the enterprises living space. The enterprises who live on the excessive relaxed environment for a long time will certainly have more difficulties or be eliminated, and the industry would like to see it, after all, without these enterprises, a healthy and orderly development of China's furniture industry can be achieved. Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products. ------------------------------------------------------------------------------------------------------------------ China LED Industry Speeding Up Development September.27.2010 From investigation and some light industry seminars that recently held in several areas by senior engineer LED, the reporter knew the phenomenon that the VC institutions rush to invest LED items are very many, and even appears the situation that you still can’t enter into it even if you have plenty money. A financing case happened in Wuhan AquaLite Photoelectric Technology Co., Ltd. this year was a classic portrayal of LED industry financing stories. As the domestic largest professional manufacturer of producing high-brightness and high-power white LED power chip, Wuhan AquaLite carried out the third round, a total of 150 million yuan financing plan, which quickly attracted a number of institutional investors. Many institutions who want to become shareholders were turned down outside such as Hunan New Energy and Industrial Venture Capital Fund. At present the valuation of led lighting industry is not low when calculate according to static valuation. Mr. Zhang Xiaofei, the senior engineer LED CEO, said there are different valuation methods for different companies. Take a large and mature company with annual output from 50 million to 100 million yuan as an example, it can be valuated usually according to the next 3 to 5 years' net assets, net assets income ratio and price-earnings ratio. It is usually as 5 to 8 times as the net assets, also it may be more than 10 times. Part valuation of Wuhan lamps AquaLite is based on price-earning ratio. Although it has turned losses into gains formally in the end of this year, but the additional price of Wuhan AquaLite is 5 yuan per share. The basis is that in 2012 the profit is expected as about 1 yuan per share and it plans to be listed in the next 3 years, so the additional price will be about 5 yuan per share, which is programmed as 20 times as price-earnings ratio after listing. For this, Mr. WU Zhihong, the chairman of Wuhan AquaLite is obviously regret than joy, said that outdoof furniture was sold cheaply, the price will not be this if we can have the financing half a year later. When formulating the financing project we have not made profit yet, now the market situation is well and Wuhan AquaLite also has went out of the break-even point. Mr. Zhang Xiaofei said this is not an individual phenomenon, with the support policy implementation and market heating since the second quarter of this year, the profit of LED lamp industry has increased a lot or turned losses generally. Therefore, now when enterprises have the financing, they should considering not only the historical compound annual growth rate, but also several factors that influence air cleaner industry and enterprises speeding up their development and growth, the premium rate is usually much higher than six months or even a quarter ago. In this regard, Mr. Wei Zhansheng, the senior manager of Hunan New Energy and Industrial Venture Capital Fund, he understood this and said, compared with the simplex financial shares, LED companies pay more attention on the resources that the investors owned. For example, Jiuzhou Group that is introduced by Wuhan AquaLite has resources of LED packaging industry development, so it has quickly become Wuhan AquaLite downstream products partner. After they join together, it will help Wuhan AquaLite become bigger and stronger. Several enterprises think that financing is used to expand production capacity. When reporter asked whether China LED lighting industry will follow the footsteps of solar cells substantial excess production capacity with the expansion pace accelerating, the industry seems not worried. Wei Zhansheng said, China is already the world largest solar cell manufacturing base, and LED lighting is still far from this stage. In addition, the demand for solar cell industry is mainly from overseas, so it will has great impact by financial crisis; and the domestic demand for LED lighting is huge, so it is not easy to be impacted seriously by outside. Above provided by SelectChina.com, and find more China lighting Manufacturers / China lighting Products.
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