1. Favorable factors

 ( 1 ) The market demand for quartz tubes has steadily increased

 ( 1 ) incandescent lamps will be phased out, widely used and replaced by middle and high-end light sources

 At present, incandescent lamps commonly used in families belong to the first generation of heat radiation light sources. Although they have the advantages of low manufacturing cost and convenient use, they emit light

 The light efficiency is too low, generally only about 10 % of the electric energy can be used for lighting, and most of the remaining electric energy is converted into heat energy to be consumed and consumed

 However, new lighting products such as energy-saving halogen lamps and low-power metal halide lamps can greatly improve energy efficiency and have a longer life than ordinary incandescent lamps.  Therefore, in order to reduce energy expenditure, save energy and reduce emissions, most countries and regions in the world have formulated corresponding plans to phase out incandescent lamps in the near future. With the progress of the above-mentioned incandescent lamp phase-out plan, Shi Ying electric light source products such as energy-saving halogen lamps, low-power metal halogen lamps and other energy-saving electric light source products will gradually replace incandescent lamps as the basic electric light source, while quartz tubes are one of the main bulb materials for electric light source products in Shi Ying, and their demand is expected to maintain steady growth in the next few years.

 ② The layout of Shi Ying's products industry gradually shifted to China

 First of all, due to the continuous development of relevant technologies in China's quartz tube industry and the cost advantage of domestic production and manufacture, domestic quartz tubes are gradually replacing foreign manufacturers' products with lower cost performance.

 Secondly, China has become the world's largest lighting source producer and the world's light source manufacturing center, and the world's three major lighting companies Osram, Philips Lighting and GE Lighting have transferred their production and procurement centers to China.  This kind of product substitution and the shift of production center will further enhance the cost advantage and market competitiveness of our quartz tube production enterprises, so that the demand for quartz tubes for lighting in our country will continue to rise steadily.

 ( 2 ) The photovoltaic industry downstream of high purity quartz sand has broad prospects

 At present, photovoltaic energy consumption accounts for extremely limited global energy consumption. According to the forecasts of the World Energy Organization, the European Joint Research Center and the European Photovoltaic Industry Association, world photovoltaic power generation will account for 1 % of total electricity in 2020 and 20 % of global power generation by 2040, and will occupy an important position in the world's energy composition.  According to this calculation, the average annual compound growth rate of the photovoltaic industry in global solar will be as high as 25 % - 30 % in the coming decades.  Therefore, the global photovoltaic industry has broad prospects for the future, and the industry will continue to maintain stable growth.  According to this calculation, high-purity quartz sand, as a supporting material for photovoltaic industry, will also have a broad market prospect in the future.

 2. Disadvantages

 New light source products ( LED ) technology progress may impact the company's electric light source product market.

 In recent years, LED lighting products, known as the fourth generation of electric light source products, are strongly supported by government policies for their good energy-saving and environment-friendly characteristics. At present, the market scale in the application fields such as low-power lighting, traffic signal light sources, liquid crystal display light sources and so on continues to expand, and is expected to maintain rapid growth. In the long run, LED will have a gradual substitution effect on traditional electric light source products.

 According to the analysis, white LED will gradually replace the original electric light source products in the future in areas where light source power and light intensity requirements are not high.  Therefore, LED will have a certain impact on other electric light source products in the future.  However, LED lamps have to overcome the double bottleneck of technology and cost in the process of gradually replacing the traditional electric light source in the above-mentioned fields, and this process will take quite a long time.  In addition, in some areas where high-power and strong light sources are needed, high-power LED lamps still cannot compete with energy-saving halogen lamps, HID lamps and other products in terms of cost performance due to the lack of a good solution for LED's luminous efficiency and consistency.  Therefore, from the prospective future analysis, the development of LED light sources will not have a significant adverse impact on Shi Ying light source products, especially high-power light source products.