On March 9, Debon Lighting released the “Annual Report 2017”. The report shows that in 2017, the company achieved operating income of 4.031 billion yuan, a year-on-year increase of 24.98%; the net profit attributable to listed shareholders was 210 million yuan, down 34.08% year-on-year.

Debon Lighting said that the main reason for the decline in net profit in 2017 and the net profit attributable to shareholders of listed companies was that during the reporting period, the company was mainly export business, and the foreign exchange rate fluctuated greatly; some raw material prices showed a relatively large increase. . 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.

According to public information, Debang Lighting was established at the end of 1996. It is mainly engaged in the research and development, manufacturing and domestic and international sales of five series of light source, indoor lighting, professional lighting, lighting control and engineering plastics, and the implementation of lighting engineering design and installation. In recent years, it has gradually involved the field of smart lighting.

In the past ten years, due to the state's encouragement of the LED industry policy, a large number of enterprises have entered the LED lighting market, resulting in overcapacity in the LED lighting market, low prices, and marginal profit margins. In recent years, the price of products has continued to fall, coupled with the price increase of plastic materials, packaging materials, copper and aluminum, which led to a further decline in the gross profit margin of lighting companies. According to Debang Lighting's 2017 annual report, the gross profit margin of Debon Lighting in 2017 was 14.52%, down 6.26% year-on-year.

Looking at the cost structure of Debon Lighting products, the annual report shows that the 2017 Debon lighting materials cost accounted for 85.43% of the total cost, reaching 2.942 billion yuan, an increase of 39.65%.

At the same time as the cost of materials has risen, Debon Lighting has achieved significant results in labor cost control. According to the annual report, the labor cost of Debang Lighting in 2017 was 191 million yuan, down 2.77% year-on-year.

Under the overall background of rising labor costs year by year, Debang Lighting's labor costs in 2017 have declined. Why? Debang Lighting said that the company pays attention to the improvement and optimization of the product manufacturing platform, adding or renovating 40 automatic production lines throughout the year, and optimizing the process automation for some production lines, continuously improving production efficiency and flexible manufacturing capabilities, and further upgrading manufacturing information. Management system, and began to try automatic storage system and AGV automatic material distribution system.

For 2018, Debon Lighting said that, first of all, increase investment in scientific research and enhance innovation capabilities. The company will increase investment and enhance the company's technology research and development and product innovation capabilities, thereby enhancing the company's market competitiveness and sustainable profitability. The company will complete related fundraising projects on schedule and build a leading and internationally advanced LED lighting product research and development center in China.

While further consolidating the dominant position of light source products, the company strengthened the investment in LED indoor and outdoor lighting products, and continued to invest in product development in the field of professional lighting products and intelligent lighting, and perfected the product line of green lighting.

Second, expand the scale of manufacturing and enhance professional manufacturing capabilities. Consolidate the manufacturing functions of Hengdian and Ruijin's two core bases, accelerate the construction of fundraising projects, rapidly expand the scale of general lighting products, professional lighting products and special application lighting products, consolidate the leading position of light source products industry, and further build professional lighting product lines. A number of segments have established a dominant position.

In addition, strengthen market development and marketing network construction. Debon Lighting said that on the basis of continuing to deepen the existing market, the company will further increase its efforts in exploring emerging markets. And actively promote the sales of its own brand products in some key areas.

Focus on expanding domestic market companies will seize the opportunities of the domestic market in landscape lighting, cultural and creative lighting and even smart city, relying on the company's subsidiary public lighting to achieve rapid development in the domestic lighting engineering field.

At the same time, the company will also focus on the sales of professional lighting products in the fields of “rail transportation, education and medical care, industrial lighting and commercial real estate”, and quickly create an efficient and professional dealer marketing network that radiates across the country through different methods.


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