Growing downstream demands contributed to the rebounding LED industry market, according to a Sina.com report. Twelve out of 15 listed Chinese LED manufacturers reported high growths in 2014, while only three companies reported sliding revenues.

Most of the 15 listed manufacturers revenue growth was between 30% to 70%, such as Honglitronics and Jufei Opto. Some manufacturers even reported exponential growths, for instance ETI, which turned around losses, and Liantronics. Only three companies including Refond Optoelectronics might report revenue declines.

Manufacturers that reported positive growth were mostly those that had implemented a strategy of in-house manufacturing combined with oversea market expansions. Downstream LED manufacturer Liantronics growth rate even exceeded expectations. The company estimates its annual net profit had grown exponentially by 840.56% in 2014 to RMB 153 million, compared to RMB 140 million or 760.64% in 2013. Liantronics newly acquired media company Times Share Advertising and Communications last May also reported stellar performance. The company’s LED display operations have been particularly good, and has shown significant growth.

Additionally, ETI was able to turn around losses with strong LED chip and package shipments. The company estimates net profits to reach RMB 60 million to RMB 90 million in 2014. Another manufacturer Unilumen also placed net profit estimations in a similar range of RMB 60 million to RMB 66 million in 2014, and expected net profits to grow at a range of 81.97% to 100.17%. High profit growths were mainly spurred by revenues from UTV small pitch display orders. Compared to previous Chinese manufacturers’ strategy of relying on government subsidies to profit, in general surging orders drove LED manufacturers’ high growth last year.

Some manufacturers were not as lucky. Refond for instance saw revenues decline in 2014, having droped from 65% to 47%. The company’s profits was about RMB 20 million to RMB 30 million last year. Changes in China’s lighting market policies triggered explosive growth in 4Q13, which contributed to most lighting manufacturers optimistic LED lighting market outlook last year. Many manufacturers rapidly expanded production capacity, which were not put into effect until second half of 2014, leading to intense industry competition and plunging product prices. Affected by these market changes, Refond’s profits plummeted despite its higher revenue growth last year. Additionally, client Jiangxi Gaofei Digital Technology’s (Gaofei) insolvency, which led to a bad debt of RMB 50 million also impacted Refond’s finances. On top of that Refond lost RMB 4.2 million in investments last year.

Overall, the LED industry has shown positive growth in 2014, but industry competition has also intensified, said Aoto Electronics in an earlier interview. Market elimination and company restructures are also more concentrated. A source from Kingsun Optoelectronic also told reporters, the LED lighting sector holds the highest market potential in the LED industry. After exponential growth, growth rates will gradually return to norm. Under intense market competition, it is increasingly important to highlight product brand and distribution channels. Costs will also fall as technology advances, and LED lighting products will gradually proliferate to thousands of households. There is still a very huge market out there for LED lighting products.