Analysis of three reasons for LED lighting enterprise capital turnover ineffective

At the beginning of 2012, on the LED market this year, all the congregation situation forecast. In the major mechanism with comparisons of stubborn and wishful thinking "in 2012, when the LED market will usher in a new starting point" in 2011 after the chaos, deshida photoelectric boss small famous in the industry has "run amazing", spread before a "clear" staff in the Chinese Lunar New Year approaching loss in the playground Taoxin home for the holiday, but the industry is in an uproar.

Data show that the number of LED manufacturers in mainland China is increasing the speed of geometric exaggeration, perhaps this is in sharp contrast with the LED market. "The Yangtze River bring forth the new through the old, waves on the beach, how heroic scene.

LEDinside analysis, the main cause of Shenzhen deshida collapse is cash flow. But in China more than 4000 LED companies, how many are in such a situation?

There have been friends of the LED sector said with a smile: LED industry with the risk of bankruptcy more and more enterprises, and even some companies will soon be listed if the slow pace, is likely to stop at 2012!

Capital turnover, the company's orders are still there, indicating that the market is still relatively benevolent, but so many manufacturers, who can save such a situation?

Analysis of the causes of capital turnover is the following:

First, the domestic project is difficult to recover

In the field of finished products, domestic sales are mostly engineering. In view of the LED product department is fully mature, more or less there will always be a problem, directly lead to endless delay engineering.

In addition, there are other strange. According to insiders, a market price of 4000 yuan of the street, in some projects the price is as high as 10000 yuan or more, the premise is to take a series of public relations of hospitality, but 10000 yuan temporarily difficult to cash, but also lost a lot of public relations in white hospitality. If things go on like this, many companies have no way to play it, which is a typical representative of the photoelectric deshida.

Two, the market forecast is too optimistic lead to large inventory

A case study of packaging and epitaxial chip manufacturers. The Chinese government's macroeconomic regulation and control in the market can play a key role, it is precisely because of this reason, the market is expected to be too optimistic. Terminal application market growth rate is much slower than the industry's growth rate, indirect effects on the performance of the packaging plant and epitaxial field sales. Inventory increases, the price has to go out to sell the price war, sales do not go out that is called bankruptcy".

Two, supplier credit

From the field of LED international mergers and acquisitions have been to the mainland manufacturers to seek listing, you can draw two conclusions: 1, reduce investment risk; 2, to raise sufficient funds.

In the presence of risk and capital shortage in the LED industry, the rate of return on capital is unlikely, and the time value of funds is also particularly important. Lured by the high rate of return, the industry seems to improve the link, in fact, a very serious phenomenon of interdependence. In the case of upstream manufacturers of long-term funds can not be withdrawn, the downstream manufacturers began to worry about the interests of a bad check, so began to press the loan. In any part of the LED industry, this situation will lead to the industry mentality, so the boss foot became the 2011 LED industry hot keywords.

In view of the above phenomenon, LEDinside believes that LED industry will usher in a new high in 2012 collapse! However, export enterprises are relatively small risk of collapse. It is worth noting that: in the LED industry, over the years from 5 to July is the off-season for export, thus inferred, from 8 to October is the Chinese mainland LED companies face a high risk of collapse!