The LED industry is benefitting from Chinese government policies, as the country puts environmental pollution issues high on its agenda and highlights energy efficient and environmentally friendly industries, according to a report by Chinese-language media Sing Tao. Chinese LED manufacturer NVC Lighting announced earlier it expected increased profits in 2013, which led to rising stock prices. As LED lighting industry becomes the next major trend, high growths are expected ahead.

NVC Lighting main businesses include manufacturing and sales of light sources, luminaires, lighting appliances and other related products. In an earlier announcement, the company projected profits at the end of 2013 will be 27 times that of 2012. The main cause behind the surging profits is because the company’s credits were affected by withdraw of RMB 222 million (US$36.17 million) in 2012, and reduced management costs in 2013.

Strong Growth in LED Lighting Exports 

Mainstream lighting products are quickly adopting LED lighting products amidst the LED lighting trend, which will further lower LED package and component prices. NVC Lighting related product sales will double to 40 percent in 2014, compared to 20 percent in 2013, according to J.P. Morgan statistics. In addition, the company has the advantage of large domestic distribution network in China, with up to 3,200 sites and a wide range of products, which is expected to improve gross profit margin in the next two to three years.

The rebounding LED industry can be attributed to price adjustments over the past few years, which have made LED lighting prices more acceptable to average consumers and contributed to rising demands. In addition, there has been a gradual revival in oversea demands. LED lighting product export growths were strong in 2013, growth rates were especially high in second half of the year, with monthly average growth at above 40 percent, according to Chinese customs statistics. There are strong signs of rebound.

One main reasons behind surging LED demands has been the phase out of 60W and below incandescent bulbs in many regions of the globe. Retailers are stocking up LED lighting products in advance, therefore LED lighting export market has been building up growth momentum since 2H13. This trend is likely to continue for several years.