Honglizhihui, formerly a Chinese LED package manufacturer known as Hongliopto, forecasted its profits could plummet as much as 40% for 2016 compared to the same period last year.

The LED industry was volatile throughout 2016, but started to rebound during first half of the year following soaring upstream chip prices. Despite positive growth in the industry, companies were still shutting down or exiting the market, while more were paying attention to industry developments. Under current market situations, leading manufacturers’ development strategy also come under the lime light.