Lighting Equipment Manufacturing in China - Industry Report.pdf

CONTENTS Error! No text of specified style in document. February 2012 www.ibisworld.com.cn | 1-800-330-3772 | chinahelpibisworld.com IBISWorld Industry Report 3972 Lighting Equipment Manufacturing in China February 2012 About This Industry . 2 Industry Definition 2 Main Activities . 2 Similar Industries . 2 Additional Resources . 3 Industry Performance 4 Executive Summary . 4 Key External Drivers 4 Current Performance . 5 Industry Outlook 7 Industry Life Cycle . 9 Products however, as domestic demand increases, exports as a share of revenue will fall. In 2012, exports are set to account for 41.1% of total industry revenue. In recent years, large-scale foreign lighting equipment manufacturers have been entering the Chinese market. For example, the largest lighting equipment manufacturer, Phillip's, established a joint venture company in Shanghai, while Thorn Company set up subsidiaries in Guangzhou and Tianjin. The third- largest lighting equipment manufacturer in the United States, Thomas Company, is planning to establish a joint venture company in Nanjing. With an increasing numbers of foreign companies entering China, the globalization of the Lighting Equipment Manufacturing industry in China is expected to increase over time. Enterprise ownership shares (2011) Ownership type Revenue share Percentage Enterprise number share Percentage State owned 0.2 0.0 Collectively owned 0.4 0.4 JECE* 0.3 0.6 Shareholding 3.7 1.9 Private 46.6 52.5 Foreign 32.5 30.6 Other 16.3 14.0 SOURCE: NATIONAL BUREAU OF STATISTICS CHINA NOTE: *STANDS FOR JOINT-EQUITY COOPERATIVE ENTERPRISE WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 26 Major Companies Major Player Market Share Zhejiang Yankon Group Co., Ltd. 1.6% (2012) Neo-Neon Group 1.5% (2012) Penglai Energy Saving Component Factory 1.4% (2012) NVC Lighting Technology Corporation 1.3% (2012) Opple Lighting Co., Ltd. 1.1% (2012) Other 93.1% (2012) Zhejiang Yankon Group Co., Ltd. Market Share: 1.6% Zhejiang Yankon Group Co., Ltd was established in 1975. It is the largest manufacturer and exporter of energy-saving lamps in China. The company mainly produces energy-saving products, including integrated electronic energy-saving lamps, fluorescent tubes and lamps, indoor lamps, outdoor lamps and energy- saving bulbs. Yankon was one of the first companies within this industry to obtain the right to import and export, and has gained international standard certification. Yankon was listed on Shanghai Stock Exchange in 2000. In 2011, revenue was estimated at $352 million, up 9.8% from 2010. There was also a large (33.4%) increase in profit. WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 27 Zhejiang Yankon Group Co., Ltd - financial performance Year Revenue Million Dollars Growth % change Assets Million Dollars Growth % change Operating Profit Million Dollars Growth % change 2005 133.6 N/C 163.2 N/C 16.4 N/C 2006 199.3 49.2 204.0 25.0 21.0 28.0 2007 225.1 12.9 249.3 22.2 21.0 0.0 2008 268.7 19.4 280.1 12.4 19.8 -5.7 2009 255.2 -5.0 322.1 15.0 22.8 15.2 2010 320.6 25.6 393.7 22.2 31.1 36.4 2011* 352.0 9.8 462.2 17.4 41.5 33.4 SOURCE: ANNUAL REPORT NOTE: *ACMR-IBISWORLD ESTIMATE Neo-Neon Group Market Share: 1.5% Established in 1979, Neo-Neon Group mainly manufactures LED (light emitting diode) lighting products, illumination lamps, decorative lighting products, fiber lights and stage lamps. In 1989, Neo-Neon moved its production force to He Shan, Guangdong province in China. In 2006, Neo-Neon Group was listed on Hong Kong Stock Exchange (Stock Code: HK. 1868). In 1996, Neo-Neon began investing heavily in R Linyi, Shandong province; and Quzhou, Zhejiang province. There are more than 10,000 employees in the four manufacturing bases. In addition, NVC has two R sales of LED Lighting equipment will contribute a greater percentage of revenue in the future. Prior to 1981, there were no unified national regulations or industry standards that directly affected this industry. Since then, the Chinese government has developed industry standards for the Lighting Equipment Manufacturing industry in the interests of safety. Classification of degrees of protection provided by enclosures for luminaries (GB 7001-1986) This standard regulates the degree of classification of lamp protection for heat and light. General technical requirements of luminaries for firms, television studios and stage lighting (GB/T 14076-1993) This standard regulates the categories, safety requirements, test methods, packaging, storage and transportation of lamps for film, TV studios and stage lighting. Safety requirements for luminaries for swimming pools and similar applications (GB 7000.8-1996) This standard regulates the requirements and test methods for lamps for swimming pools, spas and other related wet areas. General safety requirements and tests for luminaries (GB 7000.1-1996) This standard regulates the categories, signs, and requirements for lights and lamps. Codes of practice The most significant code of practices is ISO 9002 - a quality assurance model made up of quality system requirements that is applicable to organizations that manufacture, install, and service products. The 3C or CCC (China Compulsory Certification) certification is a qualified evaluation standard developed by the Chinese Government. It includes laws and regulations according to the relevant agreements of the World Trade Organization and international regulations in order to protect consumer safety and security, the environment and national security. The products listed in the CCC catalogue require relevant certification and approval from the authentication organization. The 3C mark is usually placed on the products' surface or stamped on the product by molding. WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 37 Industry Assistance The level of industry assistance is medium and the trend of industry assistance is decreasing. Key Tariffs Goods Low Rate* High Rate* Chandeliers and other ceiling or wall lighting fittings, excluding lights for public open spaces or through-fares 10.0 80.0 Table, desk, bedside or floor lamps 20.0 80.0 Christmas tree lights 16.0 100.0 Searchlights and spotlights 17.5 70.0 Medical surgical illumination equipment 10.0 80.0 Other lamps and lighting fittings 10.0 80.0 Non-electrical lamps and lighting fittings 20.0 80.0 Illuminated signs and nameplates 20.0 80.0 *PERCENTAGE OF VALUE UNLESS OTHERWISE SPECIFIED There are various import tariffs applicable for different lighting equipment. Import tariffs are lower for countries that have signed Most Favored Nation (MFN) agreements with China. Import tariffs have declined since China's accession to the World Trade Organization (WTO) in 2002, and will continue to decline in the future. Import tariffs help to protect the Chinese industry by raising the price of foreign goods; however, these price protections can lead to domestic firms becoming less efficient and innovative. WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 38 Key Statistics Industry Data Revenue ($m) IVA ($m) Establish- ments Enterprises Employ- ment Exports ($m) Imports ($m) Wages ($m) Assets ($m) Lamps and Illuminating Apparatus Output (Million Units) 2003 7,204.2 1,296.6 934 761 160,756 5,632.2 101.7 368.9 3,867.7 - 2004 7,941.5 1,550.1 1,295 1,024 219,256 6,211.0 112.6 540.4 5,519.4 - 2005 9,031.5 1,882.2 1,510 1,223 257,483 7,032.2 116.2 609.7 5,967.2 915 2006 10,087.0 2,613.7 1,555 1,310 274,099 7,834.0 114.4 726.5 6,889.9 1,134 2007 12,499.9 3,209.3 1,760 1,467 310,114 8,816.9 145.1 985.5 8,375.5 1,571 2008 15,306.4 3,700.2 2,129 1,816 330,371 9,797.5 184.2 1,294.8 10,656.7 1,610 2009 16,448.1 3,828.5 2,148 1,826 320,355 7,471.2 187.7 1,391.1 11,761.7 1,847 2010 20,083.6 4,615.8 2,186 1,903 347,534 9,723.7 287.0 1,720.9 13,441.6 2,094 2011 22,279.7 4,949.5 2,239 1,913 305,195 9,936.1 283.9 1,916.1 13,646.6 2,192 2012 23,954.4 5,286.6 2,347 1,934 323,313 9,848.1 289.4 1,987.4 14,501.3 2,284 2013 26,091.7 5,561.8 2,447 1,951 339,645 9,547.1 334.1 2,100.8 15,831.7 - 2014 28,141.3 5,962.5 2,561 1,969 342,320 9,874.2 374.8 2,298.4 16,150.4 - 2015 29,600.6 6,410.6 2,637 1,984 350,273 9,986.5 397.1 2,415.7 16,530.6 - 2016 30,850.5 6,738.5 2,753 2,004 359,750 10,470.3 417.9 2,507.5 16,790.5 - 2017 31,852.3 6,945.2 2,842 2,031 367,413 10,914.2 437.6 2,594.3 16,947.1 - WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 39 Annual Change Revenue (%) IVA (%) Establish- ments (%) Enterprises (%) Employ- ment (%) Exports (%) Imports (%) Wages (%) Assets (%) Lamps and Illuminating Apparatus Output (%) 2004 10.2 19.6 38.7 34.6 36.4 10.3 10.7 46.5 42.7 N/C 2005 13.7 21.4 16.6 19.4 17.4 13.2 3.2 12.8 8.1 N/C 2006 11.7 38.9 3.0 7.1 6.5 11.4 -1.5 19.2 15.5 23.9 2007 23.9 22.8 13.2 12.0 13.1 12.5 26.8 35.7 21.6 38.5 2008 22.5 15.3 21.0 23.8 6.5 11.1 26.9 31.4 27.2 2.5 2009 7.5 3.5 0.9 0.6 -3.0 -23.7 1.9 7.4 10.4 14.7 2010 22.1 20.6 1.8 4.2 8.5 30.1 52.9 23.7 14.3 13.3 2011 10.9 7.2 2.4 0.5 -12.2 2.2 -1.1 11.3 1.5 4.7 2012 7.5 6.8 4.8 1.1 5.9 -0.9 1.9 3.7 6.3 4.2 2013 8.9 5.2 4.3 0.9 5.1 -3.1 15.4 5.7 9.2 N/C 2014 7.9 7.2 4.7 0.9 0.8 3.4 12.2 9.4 2.0 N/C 2015 5.2 7.5 3.0 0.8 2.3 1.1 5.9 5.1 2.4 N/C 2016 4.2 5.1 4.4 1.0 2.7 4.8 5.2 3.8 1.6 N/C 2017 3.2 3.1 3.2 1.3 2.1 4.2 4.7 3.5 0.9 N/C Key Ratios IVA/revenue (%) Imports/ demand (%) Exports/ revenue (%) Revenue per employee ($'000) Wages/ revenue (%) Employees per est. Average wage ($) 2003 18.0 6.1 78.2 44.8 5.1 172 2,294.8 2004 19.5 6.1 78.2 36.2 6.8 169 2,464.7 2005 20.8 5.5 77.9 35.1 6.8 171 2,367.9 2006 25.9 4.8 77.7 36.8 7.2 176 2,650.5 2007 25.7 3.8 70.5 40.3 7.9 176 3,177.9 2008 24.2 3.2 64.0 46.3 8.5 155 3,919.2 2009 23.3 2.0 45.4 51.3 8.5 149 4,342.4 2010 23.0 2.7 48.4 57.8 8.6 159 4,951.7 2011 22.2 2.2 44.6 73.0 8.6 136 6,278.3 2012 22.1 2.0 41.1 74.1 8.3 138 6,147.0 2013 21.3 2.0 36.6 76.8 8.1 139 6,185.3 2014 21.2 2.0 35.1 82.2 8.2 134 6,714.2 2015 21.7 2.0 33.7 84.5 8.2 133 6,896.6 2016 21.8 2.0 33.9 85.8 8.1 131 6,970.1 2017 21.8 2.0 34.3 86.7 8.1 129 7,061.0 Figures are inflation-adjusted 2012 dollars WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 40 NOTE: UNLESS SPECIFIED, AN ASTERISK (*) ASSOCIATED WITH A NUMBER IN A TABLE INDICATES AN IBISWORLD ESTIMATE AND REFERENCES TO DOLLARS ARE TO US DOLLARS. Jargon CHANDELIERS Elaborate lights suspended from the ceiling. LANTERN Lights in transparent protective cases. MINIATURIZATION The act of manufacturing a product on a greatly reduced scale. WWW.IBISWORLD.COM.CN Lighting Equipment Manufacturing in China February 2012 41 Disclaimer This product has been supplied by IBISWorld Inc. (“IBISWorld”) solely for use by its authorized licenses strictly in accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Inc. 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