LED industry is now expanding financing crisis

Raised funds 3 billion has not yet enabled, and another 9 companies lined up to be listed

LED has become one of the most popular industries for venture capital and private equity investment. This is the recent Beijing to find the LED industry in the spring of the seminar on the message.

This is not good news.

According to statistics, in 2011 a total of 7 domestic LED industry companies in the A-share market to achieve IPO, the cumulative amount of financing was $3 billion 625 million, an average of a single enterprise financing of $518 million. From the market point of view, of which 5 companies landing gem, the other 2 are listed on the SME board. These ambitious plans to expand the enterprise, almost all the funds raised in the expansion of production capacity expansion projects and industrial chain.

The application of LED to the traditional lighting industry has brought a "revolution", in recent years, the domestic LED lighting industry rapid warming, capital market to become the "pet", but the capital hot conceal behind the industry development dilemma: core technology, heteronomy overcapacity, disorderly competition.

LED industry expansion

This year, LED listed companies still unabated heat. February 1st Commission announced a total of 515 IPO applications in the list of enterprises in the trial, there are at least 9 related companies are waiting to be listed. These listed companies involved in the extension, chip, packaging, application and other industrial chain in all aspects.

In November 4, 2011, the national development and Reform Commission officially announced the "China out incandescent roadmap", plans to 2016 completely out of ordinary incandescent lighting, China is a big country of production and consumption of incandescent lamp, incandescent lamp stock of about 15 billion, annual production and sales of about 3 billion 850 million and 1 billion 70 million.

Analysis of the industry, the LED lighting industry and energy-saving lamp industry will form a long-term positive, the market scale will reach hundreds of billions of yuan to replace the existing incandescent lamp only.

In order to achieve the goal of energy conservation and emission reduction, this year, the Chinese government has increased subsidies for energy conservation, environmental protection products. March 20, 2012, by the Ministry of finance, the national development and Reform Commission, Ministry of science and technology organization of the semiconductor lighting products in fiscal subsidies to promote the project in Beijing for domestic public tender, a total of 110 companies in the mainland to participate in the tender.

It is understood that the government subsidy ratio of about 30% of the purchase price, the total amount is expected to reach hundreds of millions of scale. Subsidy funds to take indirect subsidies, by the financial subsidies to the successful enterprise, and then by the successful bidder in accordance with the contract price of the supply agreement minus the price of financial subsidies to the end user sales.

In recent years, PHILPS and other international manufacturers continue to accelerate the pace of mergers and acquisitions in the industry to accelerate the layout of the whole industry to enter the traditional off-season. At the end of last year, PHILPS acquired one of the world's five largest lamp manufacturers in Spain outdoor lighting group, to accelerate the depth of the layout of the global LED lighting industry chain, while increasing investment in china. December 2011, PHILPS invested 25 million euros in Chengdu to build LED lighting center.

Japan and Taiwan LED companies have accelerated the pace of the mainland.

Some multinational giants have formed a LED patent alliance, they are promoting the technological monopoly strategy step by step, this will bring more tremendous pressure to the Chinese LED market, and a large number of domestic funds into the LED industry, will lead to LED capacity expansion, the industry can hardly be avoided.

According to the general manager of Guangzhou Guangya Messe Frankfurt, Hu Zhongshun said, the seventeenth Guangzhou International Lighting Exhibition will be held in June this year, the exhibition area increased by 10% over last year, reaching 220 thousand square meters of historical highs, but the number of enterprises decreased by 35% last year by 2900 minus 2300, shows the degree to improve the enterprise concentration the industry reshuffle is beginning.

The industry believes that the market for China, 2012, many small enterprises in LED industry will face hard competition, although the traditional lighting brings disabled application opportunities, but only stronger, the technical content of the manufacturers will have a better life.

A well-known LED company official pointed out that the current government procurement is mainly concerned about the end product prices, but did not ask who you are using the chip. This result is often the use of foreign LED chip manufacturers to quickly occupy the domestic market.

The official suggested that if the government bidding in the project, the use of domestic LED chip products appropriate points, so that they account for a certain proportion, which will be conducive to the development of national LED industry.

Chinese LED enterprises to accumulate their core technology, to break the foreign technical barriers, but also need a considerable period of time. Therefore, the above suggested that the government should speed up the pace of development of the local industry in terms of market development.

A senior people in the industry said that if the national industry is not yet mature, it is too early, too fast to open LED lighting market has great potential in this, I am afraid will cause "for making others" embarrassing situation.