*** Devaluation LED companies involved?

According to the analysis, there is a "coincidence": the nine years of continuous appreciation of the renminbi, but also the nine years of continuous rise in real estate prices in China. In 2005, after the renminbi started to appreciate, there was a clear signal: Long-term appreciation of the US dollar. That being the case, in theory, there will be a large number of US dollars entering China and replacing them with renminbi assets to avoid the relative depreciation of the US dollar. After entering these US dollars, they always exist in the form of assets. Then, the best way to exist is to buy real estate. There have been many reasons for the sharp rise in house prices in the past nine years, but one of them is the appreciation of the renminbi. In this process of appreciation, the assets of the people who owned the property quickly appreciated. The expectation of property appreciation has stimulated the desire of more people to buy a house. The recent devaluation of the renminbi has given people a feeling that the game may have to change the gameplay. Many investors are concerned that the devaluation of the renminbi will lead to a reversal of the overall market expectation, prompting investors to gradually abandon such overpriced assets such as real estate. In particular, those funds that have flowed into the country from overseas earlier will flow out of China due to the devaluation of the renminbi, or they may not dare to enter the Chinese market easily. Various functions have helped push down the prices of Chinese housing assets.

It is understood that the devaluation of the renminbi will lead to an expected reversal of the entire market, prompting investors to gradually abandon such an excessively high price of real estate, real estate investors who are disappointed, and housing prices fall. The devaluation of the renminbi has a relatively large impact on export-oriented LED companies. .

Analysts believe that the renminbi against the US dollar may be in a weak state in the short term. The impact of the devaluation of the renminbi on the LED industry is very large. Industry players have different views on this.

A manager was informed about this issue. He believes that in the case of advanced economies falling into recession and a sharp slowdown in external demand, the decline in exports is a global phenomenon. The recent devaluation of the renminbi against the US dollar will not be a trend. In the long run, the US dollar will not Towards appreciation. The devaluation of the renminbi has a relatively large impact on export-oriented LED companies.

However, for the depreciation pressure of RMB, LED companies that mainly target the domestic market still have different views. A company manager introduced that Guangyu’s export business accounted for about 20% of the company’s share. When it settled on the international market, it also insisted on using RMB to quote for a long time. The shrinking of overseas markets will not affect the development of enterprises. The devaluation of the renminbi is a shock and an opportunity, because the recent introduction of a series of economic policies by the country will allow the company to continue to increase its research and development efforts and vigorously expand its domestic market share.

The impact of the recent series of government economic policies on China's macro economy and LED industry will not be presented in the short term. According to the time difference between project approval and project progress, the effectiveness of the stimulus plan will be gradually presented in the real economy starting this year. The LED company's time to participate in government projects will also be delayed.

At the same time, whether LED companies in the international market can use the devaluation of the RMB to save the current weak export business and achieve economic growth by pulling exports, there is a time lag in the role of RMB devaluation in promoting exports, and many LED technologies with low technological content Downstream packaging and application companies may not miss the day when positive effects occur.

However, the sentiment of the market is still relatively strong. As a developer, it is more necessary to proceed from “cultivating internal strength”, such as improving product quality and strengthening the construction of landscapes. Our company is currently trying to reform, from the management system and employees. The service level and other aspects began to improve brand image.

Companies with significant foreign trade share in market share need to increase their sensitivity to the market and their own core competitiveness to cope with the crisis. The chip production line that an enterprise is about to put into production is a good example of using research and development to reduce costs and optimize and upgrade the manufacturing industry chain. This can not only reduce the cost of its own LED products, but also become a packaged application—upstream and downstream of the chip. The company is fully integrated with resources. The increase in product cost-effectiveness has enabled the promotion of overseas markets to a greater extent. In addition to mature markets such as Europe and South America, the Middle East has strong purchasing power and unlimited business opportunities. It has found a “safe haven” during the crisis. These are the best returns for independent innovation and long-term investment and attention to technology research and development.

A senior manager of a company stated that under the current financial situation, policies should increase the value-added tax rebates for LED companies, reduce export tariffs, and relax the restrictions on bank loans to SMEs in the export industry and improve the financial investment environment.

According to the author's preliminary understanding, in the Pearl River Delta region, the average orders for LED package export-oriented enterprises have dropped by over 30%, and about 5 companies have been shut down or transformed every month. In the domestic landscape lighting market, the main landscape lighting companies are generally depressed. The business volume further shrank. The demand for backlight products of small and medium size in foreign countries is also very low. European and American orders have dropped sharply. From the circumstances of China's LED industry shows that China's foreign trade under tremendous pressure, the devaluation of the yuan may be considered as: the market hopes to adopt exchange rate adjustments, carry out exploratory devaluation, its role is only to give companies a chance. With the increase of China’s economic growth point and the orderly advancement of various economic stimulus policies, the real difficulties in the LED industry will increase in the past, present, and in the future for a long period of time. A small number of industries will not show a recession next year.

The transaction volume of the property market continued to fall, both due to the traditional factors of the Chinese New Year off-season, and there were also reasons for the low enthusiasm of developers to push the plate. What is even more crucial is that prices continue to remain high, and buyers are increasingly watching the mood. They are divided about the future trend of house prices, and prices are expected to fall.

From the perspective of prices, although the rising trend of house prices remains the same, the increase has slowed down obviously, and the regional layout of housing price increases has also entered the “differentiated era” from the “popular era”. What needs to be pointed out in particular is that the industry’s big brothers have turned from optimism to pessimism about the future of the property market, and institutional predictions confirm this view. The Lyon Research Report predicts that the increase in housing prices in the Mainland will slow from 12% last year to 8% this year. Moody's also expects that housing prices in 70 large and medium-sized cities in China will decline in 2014 due to the high base at the end of 2013 and the cyclical nature of the real estate industry. It will be a high probability event.

However, the sentiment of the market is still relatively strong. As a developer, it is more necessary to proceed from “cultivating internal strength”, such as improving product quality and strengthening the construction of landscapes. Our company is currently trying to reform, from the management system and employees. The service level and other aspects began to improve brand image.