[High-tech LED news / reporter Hu Yanling] From last year to this year, "crazy" is almost synonymous with the LED industry. With the release of consumer demand, the accumulation of capital, overwhelming advertising, and the change of the horse-like lights have become the most dominant footnotes in this industry. The LED industry is in an era of warring states.
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In such awkward environment, Gong Weibin, chairman of Ruifeng Optoelectronics, appears to be quite calm. "Focus" is a term he often hangs on, focusing on packaging and focusing on SMD LEDs. He adjusted in time and decisively cut off the product line with low technology and weak profitability. Because of this, Ruifeng Optoelectronics can still rise against the market in the context of the continued decline in the price of low-end packaging products on the market.
The packaging industry is now "blood wind and rain" price
According to the statistics of the High-tech LED Industry Research Institute (GLII), the output value of China's LED packaging industry in 2010 has reached 27 billion yuan. Since the beginning of this year, the price of domestic LED devices has been declining month by month. GLII estimates that the output value of LED packaging in China will reach 35 billion in 2011, an increase of nearly 30%. The 2012 data is expected to grow to 55 billion, because the global LED lighting market will be more optimistic in 2012, and multinational companies are accelerating the transfer of overseas packaging capacity to mainland China. 
However, such glamorous overall industry performance can not cover the small and scattered embarrassing situation of the domestic LED packaging industry. GLII statistics show that there are currently more than 1,000 LED packaging companies in China, with an annual revenue of more than 100 million yuan and only 50, the remaining Most of the company's revenue is only 10 million yuan.
"In the case of low gross profit, scale is the basis for the survival of packaging enterprises. Packaging is only a processing process in the middle of LED. Only when scale can minimize production costs, it is possible to maximize profits." The staff told the high-tech LED reporter.
In the past two years, LED companies have significantly expanded their production capacity, which will increase the expected capacity expansion in the future. The rapid expansion of the industry will also bring down the risk of price downturn. The whole industry will enter a new stage where both opportunities and challenges coexist. This will bring more intense market competition and pattern adjustment. Industry insiders pointed out that raw material prices have risen, but the price of packaged products has been declining. Domestic packaging companies are entering the low-cost homogenization of the Red Sea. Cards and industry integration will be inevitable.
Ruifeng Optoelectronics is the fourth LED packaging company listed in China and the top three SMD LED manufacturers in China. In the first half of 2011, the company's operating income was 145 million yuan, an increase of 27.51% year-on-year, and the net profit exceeded 20 million yuan, an increase of 24.66% year-on-year.
The overall gross profit margin of the company increased by 5.61 percentage points year-on-year, of which the gross profit margin of the main business reached 31.44%, up 3.31 percentage points year-on-year. Ruifeng Optoelectronics has also become the only listed listed company with a net profit and a year-on-year increase in gross profit, and has successfully achieved a contrarian rise. 
