Coal industry downturn Xishan Coal Power Hand in hand for lighting LED

Recently, Taiyuan Xishanguang Lighting Technology Co., Ltd. (hereinafter referred to as “Xishanguang Lighting”), a joint venture between Xishan Coal and Electricity Group (000983) and Guangzhou Guangwei Lighting Technology Co., Ltd., was officially established.

The company has a registered capital of 10 million yuan. The products include all kinds of explosion-proof lamps used in mines, LED light sources, various types of LED downlights, tunnel lights, street lamps and other commercial lighting products and road lighting products. The estimated annual sales income is 30 million yuan. It is planned to become the largest production base of high-power LED lighting products in Shanxi Province within 5 years.

It is understood that Xishan Coal and Electricity Group currently has the largest coal-fired coal pit power plant in the country and is one of the largest coking coal production bases in the country. However, due to the slowdown in economic growth and the impact of imported coal, this year's coking coal prices have fallen sharply. The LED industry is benefiting from the state's subsidy policy, which is in the growth stage, and the coal-fired power group can take the Guangzhou Light into the LED lighting market.

However, the risks faced by the LED industry at present are not to be underestimated, and the profitability of enterprises is highly dependent on subsidies. Xishan Coal and Electricity Group has been able to quickly enter the market and reduce some of the investment costs. However, Xishan Coal and Electricity itself has not mastered the core technology of LED lighting, and its endogenous competitiveness is insufficient.

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