Financial statements for Energyled is not available for release as it is not yet a public company on the Taiwan Stock Exchange. However, as a subsidiary of Ledtech Group, its revenue and net profit data are listed in the Ledtech Electronics Corporation (2015, 2016, 2017) annual report book for their shareholders’ meeting.
Energyled’s growth has not been steady. As seen in Table 7, both revenue and net profit had increased from 2015 to 2016, and decreased in 2017. The main reason of the decrease was due to the slowdown of low temperature lighting market. But even so, the company still have enough profit for continuous investment for product development and marketing.
Table 7
Energyled Financial Information from 2015 to 2017
2015 2016 2017
Revenue 186,095 229,168 194,880
Net Profit 6,931 18,224 8,310
Note. In thousands NTD. Data for 2015 Annual Report from Ledtech Electronics
Corporation, for 2016 Annual Report from Ledtech Electronics Corporation, and for 2017 Annual Report from Ledtech Electronics Corporation).
Expected cost is estimated for human resource expense, purchase of competitor products, testing equipment and marketing for the new product (Table 8). As the development of the new product is estimated to take 6 months. Within this period, total human resource is distributed over the six years, along with total equipment expense. Competitor products and marketing expense are based on yearly budget base. The latter years have lower budget than in the beginning because the number of competitor products that is needed to buy is expected to decrease since Energyled has its own products. As well, marketing budget is higher in the beginning because extra focus will be emphasized on the new products and then slowly decrease as it will share the cost with other products altogether. Total expense is summed up to NTD 1,555,000.
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Sales income is estimated from 2019, the year that the product is expected to launch, over a five-year duration to 2023. The beginning few years will have a lower income but will gradually pick up starting in the third year. Profit is expected in the 2021, but the overall breakeven point from overall investment is expected in 2023, six years after the start of the new product development.
Table 8
Estimated Revenue and Cost from 2018 to 2023
2018 2019 2020 2021 2022 2023
Revenue
Sales 0 100 200 500 700 1000
Cost
Human Resource (40) (40) (40) (40) (40) (40)
Competitor products (20) (10) (5) (5) (5) (5)
Equipment (200) (200) (200) (200) (200) (200)
Marketing 0 (20) (15) (10) (10) (10)
Subtotal (260) (170) (60) 245 445 745
Note. In thousands NTD.
31
REFERENCES
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About us. (n.d.). Retrieved August 23, 2018, from https://www.designlights.org/about-us/
Energyled Corporation. (2018). Retrieved August 15, 2018, from http://www.energyled.com.tw/en
Global ultraviolet LED market analysis and forecast 2017-2023: Focus on technology type and applications – Market to reach $1.16 billion – ResearchAndMarkets.com. (2018, February 27). Business Wire. Retrieved from
https://www.businesswire.com/news/home/20180227005832/en/Global-Ultraviolet-LED-Market-Analysis-Forecast-2017-2023
IP enclosure ratings & standards explained. (n.d.). Retrieved August 23, 2018, from https://www.rainfordsolutions.com/ip-enclosure-ratings-and-standards
ISO 14001:2004 Environmental management systems – Requirements with guidance for use.
(n.d.). Retrieved August 23, 2018, from https://www.iso.org/standard/31807.html ISO 9001:2000 Quality management systems – Requirements. (n.d.). Retrieved August 23,
2018, from https://www.iso.org/standard/21823.html
LED lighting market to drive speedily and reach USD 54.28 billion by 2022. (2018, September 11) Zion Market Research. Retrieved from
https://www.zionmarketresearch.com/news/led-lighting-market
Ledtech Electronics Corporation. (2018). 2017 annual report. New Taipei City, Taiwan:
Ledtech Electronics Corporation.
Ledtech Electronics Corporation. (2017). 2016 annual report. New Taipei City, Taiwan:
Ledtech Electronics Corporation.
Ledtech Electronics Corporation. (2016). 2015 annual report. New Taipei City, Taiwan:
Ledtech Electronics Corporation.
Light therapy market size – Industry share report, 2024. (2016, November). Global Market Insights. Retrieved September 8, 2018, from https://www.gminsights.com/industry-analysis/light-therapy-market
Muramoto, Y., Kimura, M., Nouda, S. (2014). Development and future of ultraviolet light-emitting diodes: UV-LED will replace the UV lamp. Semiconductor Science and Technology, 29. doi: 10.1088/0268-1242/29/8/084004
Shih, M. (2015, December 4). Emerging applications for UV LEDs drive broad interest. In LEDs Magazine. Retrieved from https://www.ledsmagazine.com/articles/print/volume- 12/issue-11/features/strategically-speaking/emerging-applications-for-uv-leds-drive-broad-interest.html
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Testing. (n.d.). Retrieved August 23, 2018, from https://www.tuv-sud.com/activity/testing Ultraviolet radiation and health. (n.d.). Retrieved September 5, 2018, from
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Uses of Ultraviolet LED Lights. (n.d.). Retrieved August 22, 2018, from
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UV LED market to grow from $90m to $520m in 2019. (2015, February). Semiconductor Today, 10(1), 80-81.
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UV LEDs – Technology, manufacturing and application trends 2018. (2018, May). Yole Développement. Retrieved from
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What is RoHS and why is it important? (2013, June 17). Retrieved August 23, 2018, from http://reliancecm.com/blog/2013/06/what-is-rohs-and-why-is-it-important/
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Wikipedia contributors. (2016, October 30). UV-B lamps. In Wikipedia, The Free Encyclopedia. Retrieved September 5, 2018, from https://en.wikipedia.org/wiki/UV-B_lamps
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Retrieved from https://press.trendforce.com/press/20170613-2880.html
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APPENDIX A-1: PRODUCTS for Indoor Lighting
Tubes T5 T8 AC
Sensor Type Canopy
Yellow Tube
Signage Tube
Plant Tube
34 Meat
Light
Tube Series PAR Series
AR111
Economy Series Power Series
MR
MR16
Light Bulb
Down Light (4”, 6”,
7”, 8”)
Panel Light
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APPENDIX A-2: PRODUCTS for Indoor Lighting with Light Fixtures
Products with Light Fixtures
Overhead Sharp Light, single tube Overhead Sharp Light, double tubes
Surface Type, single tube Surface Type, double tubes
T-Bar, 2ft x 4pcs T-Bar, 4ft x 3pcs
AR111 Light Fixture, Round Track light
AR111 Light Fixture, Square
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APPENDIX A-3: PRODUCTS for Outdoor Lighting
High Bay Light
Gen III Gen IV
UFO
Spot Light
COB Series COB Series with Lens
CSP Series
Flood Light
COB Series
37
High Power Series
Street Light
COB Series High Power Series
Wall Light
9683 Series 1651 Series
Beam Light 1390 Series
1018 Series 1621 Series
38 Bollard
Light
1541, 1542 Series 1722 Series
39
APPENDIX B: TESTING EQUIPMENTS
High & Low Temperature Shock Test
High & Low Temperature Accelerated Humidity Chamber
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Light Distribution Photometer
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APPENDIX C: DEFINITION OF CERTIFICATIONS
Abbreviation Full Name Definition
CE Conformité Européenne
A certification on health, safety and
environmental protection standards for products sold within European Economic Area (EEA) (“CE marking,” 2018).
RoHS Restriction of
Hazardous Substances
A compliant that restricts the use of specific hazardous materials found in electrical products.
It is a necessity to sell in the European Union (“What is RoHS and why is it important?”
2013).
IP54
International Protection
5: limited dust ingress protection
4: protection from water spray, limited ingress protection (“IP enclosure ratings & standards explained,” n.d.).
IP65
6: total dust ingress protection
5: protection from low pressure water jets, limited ingress protection (“IP enclosure ratings
& standards explained,” n.d.).
IP66
6: total dust ingress protection
6: protection from high pressure water jets from any direction, limited ingress protection (“IP enclosure ratings & standards explained,” n.d.).
ISO-9001
International Organization for Standardization
Certification for meeting standards for quality management system (“ISO 9001:2000,” n.d.).
A mandatory Japanese law that governs
electrical appliance safety. It must be passed in order to sell in Japan (“Act on Product Safety of Electrical Appliances and Materials,” 2018).
TÜV Technischer
Überwachungsverein
Product test and certification based on
international standards for leading quality and safety (“Testing,” n.d.).
Energy Label Energy Label
A Taiwan government supported program for setting standards for energy performance (efficiency) of products (“What is Energy Label,” n.d.).
UL Underwriters Laboratories
Globally known safety solution testing and certification, especially used in the United States (“About UL,” n.d.).
DLC DesignLights Consortium
Tests and promotes high quality and energy efficient products in the commercial sector (“About Us,” n.d.).
42
APPENDIX D-1: INTERVIEW QUESTIONS for Sales
1. What are the core competences of your company?
2. Please describe the profile of your loyal customers?
3. Why do your loyal customers repeatedly place orders from us?
4. Compared with non-loyal customers, please describe your loyal customers’ unique demands or unique characteristics?
5. What unique value of your products or services do your loyal customers appreciate most?
6. Why are you (company) able to create and deliver the unique value your loyal customers appreciate so much and your competitors are not able to match?
7. a) What are the sources (i.e., core competences) for you to create the unique value?
b) How sustainable are the sources (core competences) identified in the above question?
c) Is it easy for competitors to imitate or copy your sources (core competences) of unique value creation?
8. If you raise the price by 5%, will your loyal customers still be willing to place orders from you? Why or why not?
9. Do your customers also purchase LED lighting products from other companies? If so, from which companies and what products? And why?
10. Do you know why your customers choose to order products from your company as opposed to other LED lighting product manufacturers?
11. a) What are the top five profitable products that you sold last year?
b) For these top profitable products, if you raise the quotation price by 5%, will these customers still be willing to place the order? Why or why not?
12. a) Can you describe the profile of customers who are willing to place orders even after a price increase of 5% and contribute high profit margins?
b) Are there other potential customers who may share the similar profile and needs? Can your business expand by approaching these potential customers?
13. How do you find new customers?
14. What are the biggest challenges of finding new customers?
15. What potential markets do you think you can penetrate?
16. Do you think there are ways you can improve on marketing and promoting your products? Why or why not?
43
17. How does your company plan and design new products?
18. a) To your knowledge, are there any highly growing or promising markets or industries (such as medical equipment) which may best fit the unique value your company may serve the core competences mentioned earlier?
b) How should your company better capture the market opportunities out of the boundary of the existent customer base?
19. What is your role? (eg. sales, R&D, etc..)
20. How many years have you worked at the company?
44
APPENDIX D-2: INTERVIEW QUESTIONS for R&D
1. What are the core competences of your company?
2. What is the main difference between the products you developed and your competitors?
3. How does your company plan and design new products?
4. What kind of market research do you do for designing new products?
5. What are the biggest challenges of developing new products?
6. What kind of unique value does your products bring to the company?
7. What potential markets do you think you can penetrate (with your products)?
8. Do you think there are ways you can improve on marketing and promoting your products? Why or why not?
9. a) How do you plan for your company’s technology road map and product road map?
b) How can you make sure that the aforementioned technology road map and product road map are superior to your competitors’ offerings and able to contribute to the company’s profitability and sustainability?
10. What is your role? (eg. sales, R&D, etc..)
11. How many years have you worked at the company?