On March 9, Debon Lighting released its 2017 annual performance report. From January to December 2017, the company achieved operating income of 4.031 billion yuan, a year-on-year increase of 24.98%; net profit reached 212 million yuan, down 34.58% year-on-year; The company's shareholders' net profit was 210 million yuan, down 34.08% year-on-year. On March 9, Debon Lighting released its 2017 annual performance report. From January to December 2017, the company achieved operating income of 4.031 billion yuan, a year-on-year increase of 24.98%; net profit reached 212 million yuan, down 34.58% year-on-year; The company's shareholders' net profit was 210 million yuan, down 34.08% year-on-year. Debon Lighting stated that the main reason for the decline in net profit and net profit attributable to shareholders of listed companies during the reporting period was that during the reporting period, the company was mainly engaged in export business, and the foreign exchange exchange rate fluctuated greatly; some raw material prices appeared relatively large. rise. The combination of the above unfavorable factors led to a decrease in the company's comprehensive gross profit margin compared to the same period last year. In 2017, Debon Lighting focused on the established development strategy, overcoming the unfavorable factors of large appreciation of the RMB exchange rate and rising raw materials, and carried out various tasks to enhance customer satisfaction, strengthen market development, strengthen scientific and technological research and development, and improve production efficiency. To achieve stable development of the business, continue to maintain and consolidate the leading position of the light source products industry, LED lighting business has achieved explosive growth, LED lighting products ranked in the top three in the industry, the domestic market lighting engineering business made a major breakthrough, engineering plastics business Achieve rapid growth. In recent years, with the continuous decline in the price of LED lighting products, LED lighting products are gradually replacing energy-saving lamps and entering a stage of rapid development. On the other hand, a large number of enterprises have flocked to join the LED lighting industry, and the price wars and products in the industry. In the fierce competition such as homogenization, there is an urgent need to reshuffle the industry. Along with the emergence of the country's leading industry leaders, well-known enterprises in the industry will effectively expand their own strength through mergers and acquisitions, promote further integration of the industry, and lay a solid foundation for China's development from a semiconductor lighting industry to a strong country. With the further improvement of industry concentration, the situation of the larger Evergrande will become more obvious, and the industry will become more rational and standardized. At the time of upgrading the technology and products of well-known lighting companies at home and abroad, Debang Lighting has accumulated rich customer resources in the business process with its excellent product performance, constantly improving technical level, good corporate reputation and sound customer service system. It has established long-term and stable cooperative relations with many well-known lighting companies such as Philips and Panasonic, and has organically integrated into the industrial chain of these customers. With a deep understanding of customers and markets in the downstream industry, it has achieved joint development with customers. Jointly formulate product revisions to effectively improve the company's overall service capabilities and gain an advantage in the competition. Strengthening channel construction and optimizing the international market In the traditional lighting field, especially the energy-saving lamp market, the industry concentration is very high. The world's major lighting companies are Philips, Osram, General Lighting, which account for 50% of the global energy-saving lamp lighting market. The market share around. Although with the prosperity of lighting companies in various countries and the use of new lighting products and technologies such as LED lighting, the above three lighting companies have declined in the market share of traditional lighting, but they still occupy a leading position. In the field of new lighting, taking LED lighting as an example, its industry competition is more dispersed and fierce than traditional lighting. It has formed a three-legged industrial distribution and competition pattern dominated by the three regions of the United States, Asia and Europe. The main market competitors in the LED market are OSRAM, Nichia, Cree, Philips, Samsung, Panasonic, Seoul Semiconductor, Everlight Electronics, LG and Toyota, which monopolize the high-end product market and use it in new products and technologies. Innovative advantages, mainly engaged in the production of high value-added products. In addition to Philips and Osram have been focusing on the lighting industry, other competitors in the LED lighting market have entered the entire lighting market from the lighting market or the LED market segment, such as Samsung and LG from the LED display into the LED lighting market, and some include Hon Hai The semiconductor manufacturing plants within the company also expanded into the LED lighting market to participate in market competition. However, with the increasing penetration of global LED lighting and fierce competition in the LED lighting industry, international manufacturers are hoping to withdraw from the LED lighting field with poor profit prospects. In 2016, OSRAM split its lighting business LEDVANCE, and the overall company's operational objectives will be transformed into high-growth LED components, automotive and special lighting. General lighting also reported news of the sale of lighting business. At this time, LED lighting manufacturers in mainland China continued to expand the LED market through cost advantages and government support. At the same time, they began to participate in the acquisition of international lighting companies and actively created opportunities for more Chinese lighting brands to enter the international market. Debon Lighting also leverages the advantages of Debon Manufacturing, leveraging Debon's cost-effective products and understanding of the development trend of products in the target market, maintaining the advantages of the international market and continuously strengthening cooperation with core customers, with balanced development in all regions. The opportunity to continue to acquire new business. At present, Debon Lighting has formed a good reputation among overseas customers who have relied on its scale and quality, and has established a stable cooperative relationship. The company will seize the opportunity of LED lighting development, further maintain and deepen the relationship with existing customers, expand the cooperation with existing customers, from the sale of civilian light sources and lamps to commercial and professional lighting sources and lamps, and then sell LED intelligent lighting products and control systems to increase the added value of products and achieve the adjustment of the company's product structure. On the basis of continuing to deepen the existing market, Debon Lighting will further increase its efforts in the development of emerging markets. And actively promote the sales of its own brand products in some key areas. Converging segmentation areas and broadening the domestic market In recent years, as the price of LED lighting products has been declining, the cost of replacing traditional incandescent lamps has decreased and the cycle has been shortened. LED lighting products are gradually replacing energy-saving lamps and entering a stage of rapid development. At the same time, the government's support for the LED lighting industry has increased, and a large number of enterprises have flocked to join the LED lighting industry. At the same time, it is accompanied by disorderly competition and price war. Since 2015, the LED industry has experienced fierce competition such as price wars and product homogenization. The industry has been shuffled drastically, and the two-level differentiation of enterprises within the industry is obvious. Powerful lighting companies realize resource sharing and strong alliance through mergers and acquisitions. For example, in the past two years, many domestic M&A cases have enabled domestic enterprises to upgrade their patents, channels and technologies to further enhance their profitability. At the same time, other small-scale, less competitive companies face the risk of bankruptcy and the risk of bankruptcy. According to statistics, from 2015 to 2018, the number of LED downstream lighting application companies may be reduced by half. With the deterioration of the domestic market environment, competition is fierce and the market share is gradually concentrated. Some enterprises lacking core competitiveness will be eliminated. The fierce price competition in the field of lighting and circulation products has made many general lighting markets have become the Red Sea, and automotive lighting, agricultural lighting, health lighting, stadium lighting, museum lighting, etc., are all blue ocean markets that various manufacturers pay close attention to. Among them, the automotive lighting industry has become the focus of the lighting industry with its high market returns, considerable development potential and relatively rational price competition. New hotspots such as new energy vehicles, autonomous driving, smart interconnection, and adaptive lighting are even more popular. Relatively speaking, the main technical threshold in the fields of agricultural lighting and health lighting lies in the front-end. What the lighting industry related companies can do is to continue to pay attention and strengthen cooperation. Debang Lighting will seize the domestic market in landscape lighting, Wenchuang lighting and even smart cities. The opportunities in the field rely on the public lighting of the company's subsidiaries to achieve rapid development in the field of domestic lighting engineering. At the same time, Debon Lighting will also focus on the sales of professional lighting products in the fields of rail transit, education and medical, industrial lighting and commercial real estate, and quickly create an efficient and professional dealer marketing network that radiates across the country through different means. In June 2017, Debon Lighting's subsidiary Debon Public Lighting received a Grade A qualification certificate for lighting engineering design issued by the Ministry of Housing and Urban-Rural Development. Based on the original city and road lighting engineering contracting qualifications, It has become the first company in Jinhua area to have dual-certification in the field of lighting engineering, and has become one of the five listed companies with dual-qualification qualifications. The company's lighting engineering design, installation, commissioning and service capabilities continue to improve, the business range from Zhejiang to Shanghai, Anhui, Hunan, Guizhou and Jilin and other parts of the country. Increase investment in scientific research and enhance innovation capability In recent years, Debon Lighting has continuously increased investment to enhance the company's technology research and development and product innovation capabilities, thereby enhancing the company's market competitiveness and sustainable profitability. Debon Lighting completed the relevant fundraising projects on schedule and built China's leading and internationally advanced LED lighting product research and development center. And strengthen technical exchanges and cooperation with international leading lighting companies and external research institutions, increase the introduction of high-level talents, establish internal technical research and development and product design talents training system, improve the company's technology research and development and product innovation incentives, form Conducive to continuous improvement of the company's technology research and development and product innovation capabilities of the soft environment. In addition, Debon Lighting is further strengthening the investment in LED indoor and outdoor lighting products while further consolidating its dominant position in light source products, and continues to invest in product development in the field of professional lighting products and intelligent lighting, and improve the product line of green lighting. In 2017, Debon Lighting applied for 70 new patents (including 28 invention patents), authorized 45 patents, and maintained 172 patents; 8 new software copyrights (3 of which have been registered); 13 registered trademarks successfully (One of the US trademarks and three EU trademarks). At present, Debang Lighting has more than 200 patents, including 31 invention patents and 14 overseas patents. The company was identified by the State Intellectual Property Office as the first batch of national-level intellectual property advantage enterprises and national intellectual property rights in 2013 and 2015 respectively. Demonstration enterprise. In July 2016, the company was identified as the seventh batch of Zhejiang Provincial Academician Expert Workstation. At the same time, the company also participated in the formulation of a number of domestic lighting industry standards.

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