Sunny Lighting's channel advantages are significant, with fundraising project production capacity beginning to be released

　　"Sunny Lighting is the company that started LED the earliest in the traditional lighting industry, having entered the field five years ago; in the LED field, we are also one of those with the most traditional lighting industry experience and advantages. This composite characteristic brings relatively significant advantages," a Sunny Lighting spokesperson told a Shanghai Securities News reporter.

　　Just as Philips grew from a traditional lighting giant to become a leader in LED, currently in the LED general lighting industry, there are mainly two types of competitors: semiconductor-type LED lighting companies and traditional lighting companies. LED technology and patent barriers can be overcome through acquisitions or R&D, but in terms of brand, channel development, and engineering and project experience, companies with traditional lighting industry DNA have greater advantages.

　　"As the cost-performance ratio of LED lighting continues to improve, especially with the decline in prices, the penetration and explosion of the LED industry is undoubtedly beyond doubt, and this trend is certain," said the person in charge of Sunny Lighting, while adding, "with factors such as capacity expansion, LED costs will also decline, and gross margin is not an issue worth worrying about."

Sunshine Lighting is the largest energy-saving lamp manufacturer and exporter in China, having won the bid for the "National High-Efficiency Lighting Product Promotion Project" for 5 consecutive years. It has ranked first in national energy-saving lamp procurement for years, with a market share approaching 10%. "When venturing into LED, all channels and brands can be carried over, and compared with the previous energy-saving lamp sector, the changes are not significant."

Sunshine Lighting has adopted the self-distribution model from NVC Lighting, emphasizing both retail and project sales. It has currently established over 3,000 marketing outlets nationwide, around 1,000 direct-operated stores, and its own brand has reached about 30% of total sales.

Cooperation with the world's three giants has always been a comparative advantage of Sunshine Lighting. Currently, the world's three lighting giants are Philips, Osram, and GE. Sunshine Lighting is Philips' largest supplier and has entered the supply chains of all three giants.

A relevant person in charge at Sunshine Lighting stated that the main sales area for LED is indoor lighting, which is also the segment with the strongest demand explosion in the LED field currently.

The 2012 annual report shows that Sunshine Lighting's main business revenue approached 2.6 billion yuan, with the LED business contributing 360 million yuan. Last year, Sunshine Lighting's net profit was approximately 210 million yuan.

　　This is the first year in which Sunshine Lighting's LED fundraising projects are being gradually put into production. In 2011, Sunshine Lighting raised 900 million yuan through a private placement, of which the Xiamen Sunshine LED Energy-Saving Lighting Products Project, with an investment of 410 million yuan, is planned to begin partial production from January this year. Once at full capacity, it will form an annual production capacity of 20 million LED lighting light sources and 5 million sets of LED lighting fixtures; at that time, it will add 1.7 billion yuan in sales revenue and 250 million yuan in total profit.

　　Another fundraising project, the Zhejiang LED Lighting Products Industrialization Project, upon reaching full production, is expected to add 1.1 billion yuan in annual sales revenue and 170 million yuan in total profit.

　　“The Xiamen base has begun to gradually release LED production capacity, while the Zhejiang base still needs some time before production begins. If both the Zhejiang and Xiamen bases are fully in production, the combined LED revenue will approach 3 billion yuan,” said a Sunshine Lighting representative. In 2012, the company's LED operating revenue was 364 million yuan.