Recently, Leyard issued a product price adjustment notice that it will adjust the full range of products from June 30.
Leyard wrote in the price increase notice:
As the cost of upstream raw materials (semiconductor chips, PCBs, chips, etc.) continues to rise, the procurement cost of LED module raw materials has risen to varying degrees, and the supply cost has risen sharply.
In line with the customer-centric business philosophy, we have been working hard to maintain price stability, and now it has seriously exceeded the company's market pricing can afford. In order to sustain the company's development and adapt to the needs of the LED display market, it has been researched and decided to make adjustments to the full range of indoor and outdoor products based on cost changes from now on.
Prior to this, Leyard said that the current increase in the company's product prices can cover the increase in the company's costs, and declared that with its strong bargaining power and financial strength, the company can guarantee the supply of raw materials to a greater extent.
Recently, in both the lighting and display fields, more and more semiconductor manufacturers have issued price increase notices. The price increase may affect the sales of related manufacturers in the short term, leading to increased inventory and the risk of performance decline. Recently, Leyard has announced the performance forecast for the first half of 2021. During the reporting period, it is expected to earn 250-300 million yuan, an increase of 11%-34% year-on-year.
In addition, on the 28th and 29th, Signify and AICA have successively issued price increase letters.
Signify (China) Investment Co., Ltd. has issued a notice on the price adjustment of Philips brand LED modules and driver products in 2021. The notice shows that with the continuation of the global new crown epidemic, the prices of various raw materials have continued to rise, and the supply shortage has greatly affected the cost of its products. In order to better provide customers and partners with long-term services. Signify has decided to adjust the suggested retail prices of LED modules and driver product lines from June 29, 2021, with a recommended increase of 5-10%.
AICA’s announcement shows that, affected by the epidemic and the overall rise in international bulk raw materials, AICA has decided to raise prices ranging from 10-30% for different series of products starting from July 1. The price adjustment will be implemented with the newly signed contract on July 1, 2021.
Aike shares said that the company will closely follow the trend of raw material prices and changes in supply and demand, and do a good job in adjusting product prices in a timely manner. The increase in the sales price of the company's products will help further enhance the company's continued profitability and is expected to have a positive impact on the company's operating results.
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