月份：2012年5月

LED lighting industrial,M & A, should not blindly buy the dips

After the outbreak of the debt crisis in European countries, most Europe welcomed Chinese enterprises to invest, which provides an excellent overseas opportunities for Chinese LED lighting products enterprise. Based on this, in 2011, the acquisitions are waving and surging of the Chinese led lighting industrial, blowing a whirlwind. When entering 2012, M & A momentum is more violent, a lot of acquisitions are world-class enterprise. Mergers and acquisitions wave of the lighting companies will undoubtedly affect the pattern of the lighting industry in China and the whole world lighting industry. But at the same time, we must remind China lighitng enterprises who invest and acquisite in foreign enterprises should have purpose and target, not blindly buy the dips.

LED overseas acquisition of the road just getting started

When the path of the global economic integration gradually clear, the LED Street Light companies of overseas mergers and acquisitions will be mature and normal, which is inevitable outcome of led lighting industrial. But the worlds economic and development is unstable, the business rules vary widely. If Chine lighting enterprises go at the situation, it is not only faced with rare opportunities, but also facing the challenges of security and other risks. If say the early overseas M & A also belong to the stage of trial and error, then today, a fter accumulation of experience, more peace of mind will be needed. While starting from the rational acquisition, risk prevention point of view, not only the enterprise need to clear the way and significance, but also we hope that government departments who manage large amounts of resouces provide more policy interpretation and support. In a complex political and turbulence, to let China led lighting industrial quickly realize the transformation and upgrading, to flex its muscles on the international market. Of course, the lighting companies in China’s oversea M&A road is just starting its way, the future large and medium-sized enterprises are likely facing the choise of overseas acquisitions. Hundred percent lighting chairman Bo Tao introduced, the next hundred percent lighting acquisition is unclear, according to LED Flood Lights market changes, and combined with its own development to examine the need for the acquisition and how to acquire.

The continuing reason for LED lamp market dilemma?

Third Question: the relevant state LED bidding policy resulted in the unfair competition of the market

2012,  the central project related to the three ministries jointly bidding for the financial subsidy of the national LED Lights, and the “annual output capacity of 200,000 threshold” immediately will be the vast majority aspire struggling to forge ahead in the field of emerging LED companies refused to of the door.

How? LED lamp market as an emerging industry, the market is still in the immature stages and industry standards are not really established. The market capacity is so less, and the real customer goals are not effectively formed. In addition, the ability of the market to digest the LED is unsatisfactory. On earch, how many companies real have the production capacity of annual output of 200,000 LED downlights? As a result, It is convenient for the traditional lighting companies, and disolate the new LED enterprises and companies? The traditional lighting of the successful enterprises (containing malicious competition subjective awareness of LED High Bay enterprises) enjoyed the financial subsidy by the state taxpayers. So letting the new LED lamp market strangled in the new cradle, it is fair, equitable and public?

Concession speak the words, even if the successful corporate annual production capacity to 200,000, and in line with the requirements of the bidding, in line with the requirements of the bidding, how much the ability of its companies sold to the market? So, that consistent with the so-called “successful request” LED business (in cluding the traditional LED lighting enterprises), who apply for state financial subsidies can assure not accepting any money within the real guarantee. That sold abroad products had been counted? Is it not the tax dollars fo our people directly benefit the foreigners? It is strange that the foreign people is not happy.

Looking back at the main body of the international social market economy, government in each country are in the role of management and service functions. If it disturb a market economy, the use of financial subsidies might break the normal balance of the development of LED lamp market.

As lighting industry start late of its field, the real force in the field of LED Street Light enterprises who may also be looking at the share of financial subsidies is inaccessible. Each of us must put ourselves in a right position. In modern society, each of us should curtain when it staged of history. In order to facilitate the emerging forces to stand on the stage at the moment.

Light attenuation of white LED lamps (2)

Currents higher than the normal working current will speed up the light attenuating process, dramatically reducing the working life of white LED Lights. There are several other facts can prove that fluorescent powder’s degeneration is the main factor fir the short life of white LED lamps: 1. Normally, we will find that after aging tests, most white-ray LEDs send out a kind of blue-white rays instead of white rays, indicating the degeneration of fluorescent powder; 2. Some people tested the performance of blue-ray LED chips and found that although the capability of the entire LED lamp has dropped more than 30%, the degeneration of LED chips is only a few percent. This shows that most degeneration is from fluorescent powder. 3. Same chips, high power package has a much longer life than low power package. (will be discussed more in details in next section)

 

Currents higher than the normal working current will speed up the light attenuating process, dramatically reducing the working life of white LEDs.

 

Overall, under the influence of temperatures, the degeneration of fluorescent powder is inevitable. The higher the temperature, the fast the degeneration.

 

The degeneration of blue-ray LEDs:

Among LED chips, blue-ray LEDs have the shortest working life. The average life of low power plug-in blue-ray LEDs under normal working current (20mA) is around 7000-10000 hours. Low power plug-in red-ray LEDs working under 50mA current, they will suffer no light attenuation even after 8000 hours. Besides, the average life of yellow-ray LEDs and green-rays LED Street Light are longer than 10000 hours. Thus this congenital defect of blue-ray LED chips is another main factor for the short lives of white LED lamps. The internal materials of LED chips cannot be changed, but scientists still can apply themselves on finding better materials for external parts of LED chips.

 

Materials made up LED bases have bad thermal conductivities:

Usually, low power plug-in LEDs will be fixed on based made up by iron. From the view of heat radiation, iron has a very low thermal conductivity. Meanwhile, cross areas of supporters are usually small, which cannot radiate heat in time. Materials and constructions of LED bases will cause the weak heat radiation behavior of low power plug-in LED lamps. Copper has much better heat radiating capability than iron. In consideration of its high price, LED manufacturers have to reduce the cost at the cost of performances and lives of their products.

why led lighting is still on the muddy road?

2012 will take off years of LED lighting, and Why it says that why led lighting is still on the muddy road?? It is estimated that 2012 LED lighting output used in architectural doubled than last year, which grow to  $ 684 million. Fluorescent lighting market from this year, the neon-oriented market, and slowly transferred toward the direction of LED lighting. Admittedly, the future LED lights is expected to completely replace the neon signs. And then to become the protagonist of the architectural lighting market.

Although LED lighting as a new generation of lighting products, it is a major representative of the product as a milestone in the lighting industry, and excellent in all aspects of LED lighting. But right now, the heavy dusk of LED lighting market, when to poke cloudsd and see the sky, which is worth exploring. Most Chinese enterprises walk in the midstream and downstream industry chain, and only a small part of Chinese enterprises is difficult to survive. Technical problem is the primary obstacle to impede Chinese companies.

Since Steate and local governments to support this emerging LED industry efforts to the enterprise, and introduction of various policies and preferential measures. So, it set off a place to get the building wave of large LED production base. why led lighting keeps the same? Because the low threshold of downstream technology, which easily entered into the LED industry-the most appropriate incision. The inevitable result of such large-scale investment in upstream and downstream industrychain is redundant construction and waste of resources, and even generate excess capacity and foam.

Because various parts of LED street light manufacturers emerged, more than 500Taiwan-funded lighting companies in the Guangdong region alone. A large number of enterprises are concentrated in the top of the upstream and downstream industry chain, thus leading  to a competition in the downstream industry chain reminder serious, and less profits. Enterprises have to low price of the products in order to seize the market, which led to one confusing reasons of the LED stage of the domestic market.

LED insider think that why led lighting have no market? the high price of LED lighting products are only argument, in fact, the real reason is that how many people know LED? If only to be told or understand the products, how to get consumers to buy? Moreover, the price of LED products is relatively higher, Market come and go grumbling grow up!

Light attenuation of white LED lamps (1)

At present, white LED lamps have very serious light attenuation problems, especially for low power white LED Street lights. Light attenuation phenomenon dramatically reduces the working life for them. Generally, white LED lamps are very expensive in LED lighting market. If manufacturers want to stay in business, they have to increase the working life of their products. But they cannot. There are several causes for the problem: the degeneration of fluorescent powder in high temperatures; the degeneration of blue-ray LEDs; the degeneration of LED bases; other packaging materials; packaging technique; misuse (improper power supply, bad cooling). In below, we will discuss them separately in more details.

 

At present, white LED lamps have very serious light attenuation problems, especially for low power white LED lights. Light attenuation phenomenon dramatically reduces the working life for them.

 

The degeneration of fluorescent powder in high temperatures:

The stimulated light efficiency of fluorescent powder will drop with the increase of temperature. A testing report from a fluorescent powder factory in Guangzhou shows that the stimulated light efficiency of fluorescent powder drops by 2% under 80 oC. However, this is just a short-term experiment. When temperatures drop back to the normal level, fluorescent powder regains the original performance. If we intend to find whether this degeneration is restorable or not after long-term work, aging tests are necessary.

 

In some cases, we will find that after a period of aging tests (1000 hours for lower power white LEDs, 2000 hours for high power white LED Street Light), white LED lamps become brighter. This situation may cause by following reasons:

  1. Fluorescent powder used together with epoxy glue lead to the degeneration of fluorescent powder. In the initial effect of temperatures, the stimulated lighting emitting ability of fluorescent powder will be recovered to some degrees.
  2. In some cases, the stimulated lighting emitting ability of fluorescent powder will be raised rather than dropped for being combined with epoxy glue.
  3. The performance of blue-ray LED chips will be enhanced after a period of work.

 

Among the aging tests of low power LED white lamps, scientists found that the luminous flux of them will increase within 200 hours’ continuous work. But after 200 hours, situations are completely different. They will inevitably meet with light attenuation problems. Conditions are a little bit of better for high power white LED lights. The luminous flux of these lamps will become unstable within the working range from 100 hours to 6000 hours. However, after 6000 hours work, they will also meet with attenuation problems.

The second chapter:LED export orders are declined 30%, shenzhen led manufacturer close watch on the civilian market

The emerging of LED High Bay industry reshuffle tide 

Pan Wenbo said, It is estimated that domestic LED business is about 8,000 companies, which are in a “small and scattered”state. Industry shuffle the high voice of the order development of the industry. In fact, the undercurrent of the shuffle is also surging in the industry field. Starting from last year, it will continuous emerge the LED failures.

It is reported that by the send of 2012, only shenzhen led manufacturer, the closure of LED lighting business is more than 80. Foshan city, is about 10%. Followed by Shenzhen, Foshan,Dongguan, Zhongshang, LED Street lighting companies feel the market cold wave.

As a barometer of the global lighting industry, the Guangzhou International Lighting Exhibition data shows the indication of the  industry lighting in shenzhen led manufacturer. According to Pan Wenbo said, the 17th Guangzhou International Lighting Fair exhibition held in June of this year expanded by 10% over than last year, but the company number is 12% less than last year. From 2900 cut down to 2600, shows that the enterprise increased concentration and industry reshuffle is started.

In contrast with the industry downturn, this year’s enthusiasm for the IPO of domestic LED is still rising.

According to the statistics, only in the first quarter of this year, the listed companies and over-ready listed LED companies have 8, more than the total number of listed companies than last year’s LED business.  Six companies are listed on the March. At the end of last year, four LED Products companies report on the grand within five days.  Industry are generally expected that the tide of shenzhen led manufacturer listed will continue to be staged.

On the surface, the IPO craze seems to run counter to the industry, but Guangya Lighting Institute analysis that the emerging of the listed company is actually prepared for the futher of a company. Otherwise, it will be gulp down by potential acquirers.  Inroads into the Chinese market,Philips, Osram LED giant, crossed the border into the shenzhen led manufacturer, BOE, TsinghuaTong Fang and other well-known domestic enterprises, as well as the traditional lighting companies of brand and channels have become many small LED micro-enterprises potential acquirers.

The first chapter:LED export orders are declined 30%, shenzhen led manufacturer close watch on the civilian market

After experienced years of development spurt, shenzhen led manufacturer began to enter the trough period from the second half of last year. The reporter learned from the 111th Canton Fair which held recently, the LED Projects business is commonly dropped by 30%  from Europe and the United States since the beginning of the orders.  On the perspect of listed company, 13 companies listed from the first quarter of last year to this year’s annual report, the growth rate of 11 enterprises are in severe decline. But in order to avoid the misfortune of being mergers and acquisitions, domestic LED company IPO is still in full swing staged.

The data from the world’s largest lighting exhibition in Guangzhou International Lighting Exhibition indicate that the scale of this exhibition will be opening in early June, an increase of 10%, but the number of exhibitors has decreased by 12%. Behind the bustling capital of LED heat surged the flood of industry reshuffle. Guangzhou International Lighting Exhibition, founder of Pan Wenbo have an interview with reporters, said, “The temporary trough period of LED high bay industry provide the timing of the reshuffle. The international giant and competing LED domestic enterprises listed will become shuffling leader.”

The export order drop down by 30%

According to industry sources introduced, domestic LED enterprised are in the leading of exporting of 70%. Under the influence of a variety of factor of the U.S. consumer market recovery and weak, the reduction of orders are obvious cutting down since the second half of last year.

The situation of U.S. and European markets this year is particularly severe, orders fell 40%. Reporters learned from a number of shenzhen led street light manufacturer, European and American orders slow down by three to five percent which is quite common in the industry field. The deduction of  orders will directly influence the revenue decline. According to the statistics of Guangdong Guangya Lighting Research Institute, from the 2011 Annual Report released by the 12 companies listed from last year to the first quarter of this year shows just  the photoelectric Liantronics two maintained a slight increase in growth rate. The other 10 enterprises is as a slow speed declining.  Among them, the rectangular illumination  in 2010 kept 234% of the growth rate, only 57% of 2011 operating income growth. Mason Technologies performance even shows zero growth.

To be continued…

Analysis for thermal radiation of LEDs

Until now, many people believe that LED high bay has no thermal radiation. Is it true? Firstly, there are some concepts need to be understood:

 

What is LED? LED is the abbreviation of Lighting Emitting Diode, a fully packaged electric component including chip, base, wires and colloid. LED is constituted by multiple materials, not only PN junctions.

 

Until now, many people believe that LED has no thermal radiation. Is it true?

 

What is the lighting principle of LED lights? Within LED PN junctions, rays are generated though the combination of electrons and holes. When an electron is captured by a hole, this electron will drop from conduction band to valence band. During this process, the released potential energy converts into optical energy. In ideal condition, all of the potential energy will convert into optical energy since energy cannot be divided. Thus in ideal conditions (without any impurities and defects in diodes), there is no thermal radiation for LEDs, except for some special LEDs, like infrared diodes.

 

What is the meaning of thermal radiation? Objects above absolute zero will inevitably generate infrared rays, namely thermal radiation. Generally, thermal radiation in real life is the thermal influence of objects when they have a higher temperature than surroundings.

 

What is cold light source? Cold light source can emit rays without heat. Bioenergy, chemical energy and electricity can stimulate its internal electrons transition to emit rays.

 

Now let us discuss about the original questions: does LED really have thermal radiations? As we mentioned before, in ideal conditions, there will be no heat generated during the combination of electrons and holes. But, chip has resistance, the internal potential of PN junction will obstruct the movement of electrons (make negative works), electrodes have resistance, chip base has resistance. All of these will generate heat due to the external electric field, leading to the entire LED Street Light component has a high temperature than surroundings and consequently thermal radiations.

 

Lighting principle is different from heat generation. They are two distinguished properties of LEDs. It is completely wrong that LED has no heat generated since there is no vibration (heat) in the light-emitting process. PN junction is not the only part of LED, there are many other parts. As multi-materials components, thermal radiation for LEDs is inevitable. Cold light source still generate heat.

Misunderstandings of residential LED lights (2)

LED tubes:

The working principles of fluorescent lamps determined their tubular structures. Lamp bases applied to filament lamps cannot be used on fluorescent tubes. However, fluorescent tubes were widely used, in spite of the oversized lamp body and noise coming from ballasts. Because fluorescent tubes have a most important advantage: energy saving. Designers continued to use the design concept of fluorescent tubes, and created LED tubes. However, this tubular structure has nothing to do with principles of LEDs, just a copy of the traditional design concept. The oldest fluorescent tubes are T10 tubes. In order to improve the lighting efficiency, designers then invented T8 fluorescent tubes. Until today, T5 and T4 tubes have been used in many places. According to the working principles of fluorescent lights, the longer and thinner the lamp body, the better the lighting effect. Thus diameters of tubes became smaller and smaller. However, it does not mean that this kind of design is also suitable for LED tubes. As a type of residential LED lights, LED tubes cannot work in high temperatures. Designers did not take this into account. From the oldest T10 LED tubes to T8 LED tubes and nowadays T5 LED tubes, the cooling system has become the biggest problem for LED tubes designers. It is not to say that LED tubes cannot be made as tubular structure. But they should have their own sizes and shapes, which is consistent with their own characteristics.

 

The working principles of fluorescent lamps determined their tubular structures. Lamp bases applied to filament lamps cannot be used on fluorescent tubes.

 

LED High Bay bulbs:

LED bulbs are the oldest residential LED lights in LED lighting industry. However, there are a lot of unreasonable places in their shape designs. For instance, LED chips have much better lighting efficiency, but designers applied opaque covers which obstruct up to 30%-50% lights. This is a rather ridiculous design. Similar to LED tubes, LED bulbs is another LED lamps that followed the design steps of traditional filament lamps. These spherical-shaped LED bulbs actually go against working principles of LEDs. Designers have to reduce the entire volume of cooling sections to have this shape. As a result, most currently used LED bulbs are low powered, with limited luminous flux. Under such circumstances, designers still use opaque covers to reduce brightness further, it is really ridiculous.

 

Misunderstandings of residential LED lights (1)

LED used for residential purpose, who will be replaced?

With the continuous development of LED lighting technology, the luminous flux of LED lamps becomes higher and higher. Nowadays, many LED technique has been used in outdoor lighting, not to mention indoor lighting. Residential LED lights occupy more than 40% in current indoor LED lighting market. There is no doubt that traditional filament lamps have regularly replaced by LED lamps. No matter in energy-saving area or in lighting effect area, LED lamps are much better than filament lamps. What about other traditional lights? What about fluorescent lamp and energy-saving lamps? Can LED lamps shake their positions? LED lighting technique has many advantages, compare with traditional lighting. However, LED lamps should not follow the steps of traditional lamps. Take LED bulbs for instance, they have much similar shapes with filament bulbs.  Designers have to reduce the volume of radiators to keep this shape. That is the main reason why high powered LED bulbs cannot be found in the market. If we can get rid of the restrictions coming from traditional design, take full advantage of LED technique, LED lamps will replace fluorescent lamp and energy-saving lamps in the future.

 

With the continuous development of LED lighting technology, the luminous flux of LED lamps becomes higher and higher.

 

LED spot lights:

Ф5 MR16 spot lights are obsolete. Designers misunderstood the requests and lighting effect of spot lamps, as well as “MR”. They just used MR16 lamp cups as covers. As a matter of fact, LED spot lights can also be made by other lamp cups. Nowadays, substitutes of MR16 LED spot lights use aluminum plates as radiators. People still call them MR spot lights. Only a small part of LED spot lights are used as residential LED lights. Some of them are used for decoration purpose. Usually, this type of spot lights can create beautiful spots on the ground, and enhance the aesthetic effect. Most of them are used for focus lighting. This type of lamps needs a very strong condensation effect. Different from the parallel rays emitted by searchlights, LED spot lights used for focus lighting always have very strong light intensity in the middle of the beam. The external light should be soft. Ф5 MR16 spot lights cannot create such lighting effect.