1/2 Chinese LED lighting manufacturers found themselves in an awkward financial situation in 2014, with many reporting plunging net profits in their recent fiscal report.
Many Chinese LED lighting companies despite increased revenues in 2014, net profit growth has lagged behind. In addition, gross margins and net profits have dropped.
What is causing the collective profit loss? There are 2 major reasons that led to lighting manufacturers declining net profits in 2014. Firstly, clients have a thorough understanding of the market, while manufacturers were engaged in cutthroat competitions. Secondly, some large projects have been delayed because of certain government policies, but manufacturers have already invested in the initial phase of the project.