LED industry next year or face greater risk?

Led face looks very beautiful feast, quite a few enterprises "transformation", became the herd, "transformation" on the road "martyrs".

Authoritative insiders boldly predicted that the LED industry is more likely to erupt next year, when there will be more LED companies face collapse.

Small businesses or shuffle

Not surprising, in November 8th, Wu Yulin, chairman of the Foshan Lighting Association, told reporters when talking about the collapse of Shuai liang. This enterprise has done is the traditional lighting manufacturers, do not have the conditions for the production of LED products. Heard that the industry is good, immediately rushed into the trade". Wu Yulin believes that the handsome bright collapse will not just the beginning, "the first half of next year or the second half of next year, you can see more business failures sight".

According to Wu Yulin revealed that Foshan is currently engaged in the production of LED up to more than and 300 companies, but like Liang Liang from the traditional lighting industry smell LED industry opportunities, transition over about more than and 100. The transformation of these small businesses mostly occurred in the past two years, and even some companies are just over the transition from the traditional lighting industry, and some do not have the transformation of traditional lighting companies are also planning to fight LED battlefield.

Guangdong LED 12th Five-Year industrial plan shows that Guangdong sits on the country's 60% traditional lighting companies. Hu Yulin revealed that only one in Foshan to gather about 30% of the country's traditional lighting companies. For a large number of traditional lighting companies, LED industry has become the first choice for the transformation of the road. But too many inexperienced businesses herd, like the road is very good, but Taisai car, eventually people will be squeezed down to death". Wu analogy.

In Wu Yulin's view, the biggest risk is probably exposed to bright and handsome the size of the "transformation" body.

Next year there will be many companies die

Shenzhen is located in Longgang Shenzhen Hao Jing Lighting Technology Co. Ltd. also faintly smell the taste of the storm. Next year, or even at the end of this year may be the beginning of the year, there may be a lot of LED companies die, Shaw predicted. He believes that this year LED is a reduction in foreign orders abroad because of the poor economic situation, but on the other hand, it is because a large number of aggressive "transformation" buried bitter has begun to appear.

"Some 07 or 08 years of production and export of foreign LED products have begun to expose such a quality problem, foreign businessmen want to get back the original supplier, but found that the manufacturers closed. This allows some foreign manufacturers to produce a crisis of confidence in China's LED products, which also largely caused the reduction of LED orders". Mr. Shaw said they found some LED lights on the market life expectancy of only three months, half a year. No matter how small businesses, a hammer trading, earn money to leave. Great pull the door closed, another name to re open".

Upstream risk

In the opinion of Guangdong Lighting Appliance Association Secretary General Guo Xiu, the risk is also not only focus on the many small enterprises reached the LED industry body, whether it is gathered in midstream packaging medium-sized investors link, link the upstream epitaxial chip production still attracts large consortia and large investment funds are heavy hidden risks.

"Someone took 23000 million yuan, the advice to me can do LED package; also used thick LED business plan, to kill the industry", Guo Xiu said, most people see the investment prospects this market better, but the lack of the correct assessment of risk. Because of this, Guo Xiu believes that the risk of LED upstream hidden greater. "Small business ship small U-turn, the limited size of the economy; in the upper reaches of the tens of millions of dollars to invest tens of millions of dollars, once they risk, how to turn around"?

Hao Jing lighting technology Mr. Shaw agrees on this point of view. He believes that the current LED market is full of "speculators", some with "LED" name yourselves misappropriating speculators. "Some enterprises are the price we are surprised, these companies either work, or money," Mr. Shaw said, the purpose of the enterprise is to seize market share, the bigger plates, and the bigger market desperately intriguing motivation.

In addition to junduoli, century Jingyuan large and medium-sized enterprise risk exposure is LED a microcosm. In May this year, Shenzhen century crystal source due to bank loans being sued in arrears, the payment of its suppliers, engineering, the amount of money ranging from several hundred thousand dollars to several million. Found the Central Plains securities research, the company in 2005 to enter the LED epitaxial wafer and chip field, the initial investment of 3 billion yuan, planning 3 years to 5 years investment reached 20 billion yuan, the total output value of planning more than 100 billion yuan, the scale and planning into the LED in 2010 many upstream companies such as a frog. However, the actual situation is that the century crystal source LED chip was officially put into operation in 2008, many years down, the product is rarely seen in the market, the company is close to the brink of bankruptcy.

"For the new company has no technical reserves and sales channels, into the upstream of LED wafer and chip link there is a big risk, the planning capacity can be transformed into effective capacity uncertainty, central China Securities official pointed out.

In the crowd more than LED big brother of the listed companies, the situation is not optimistic. LED industry listed companies released in 2011 three quarterly report shows that in the third quarter, LED revenue and profit growth of listed companies showed a decline across the board. This shows that LED is currently in the performance of the industry downturn, big brothers who are also difficult to live.