LED surplus industry is still raising fund-raising

Since the three quarter of 2011 boss foot tide, now spread to the Shenzhen LED industry. This is due to the serious excess capacity of LED, coupled with the deterioration of the economic situation at home and abroad, so that a substantial decline in product prices.

But this does not affect the enthusiasm of LED companies to expand production capacity.

December 20, 2011, the issuance examination committee will examine a LED enterprise - Hangzhou far north optoelectronics Touchplus information Corp IPO application. This is the fifth LED companies will be on this month. According to statistics, only in December last year, there have been 5 LED companies will.

Eager to expand capacity

In December last year, there have been Shenzhen fly Shenzhen Wanrun Au Optronics Co, Polytron Technologies Inc, Limited by Share Ltd, Riyadh Shenzhen rectangular semiconductor lighting Au Optronics Co and other LED related enterprises will.

From several companies in the prospectus, the company's funds to raise funds for the expansion of production capacity.

Everfine photoelectric prospectus shows that this equity investment gold mainly invested in three projects, one is the annual output of 1500 sets of LED photoelectric detection equipment expansion projects, fund-raising 115 million 700 thousand yuan; two is the R & D center construction projects, fund-raising 48 million 120 thousand yuan; three is the sales and service network construction projects, intends to raise 15 million 230 thousand yuan.

Shenzhen poly flying investment projects include a cost of 215 million 275 thousand and 500 yuan to expand the production of backlight LED project, the $100 million 756 thousand and 100 expansion of the production of lighting LED project and the $46 million 480 thousand and 400 LED technology research and development center project.

Shenzhen Wanrun equity investment projects for the $126 million 910 thousand new high efficiency chip LED production and construction projects, 96 million 760 thousand yuan LED green energy-saving lamp production projects and 21 million 883 thousand yuan of enterprise technology R & D center project.

As can be seen, LED enterprise IPO projects are basically used for capacity expansion. The media believe that the listing of the road is a lot of companies to raise funds to tide over the difficulties, homeopathy expansion scale, a good way to survive.

Or excess capacity

In the back of the LED business is actively expanding, but it is overcapacity embarrassment. At present, the collapse of Shenzhen LED business has begun, the industry is facing reshuffle. LED prices fell rapidly, according to statistics, the average price of LED products fell by 21%.

The development of the industry exposed the defects, the LED industry is facing the core technology, the lack of standards and the lack of funds and other bottlenecks, while relying solely on the idea of replacing the incandescent lamp to change.

At present, the mainland LED enterprises basically play the role of "wage". Many manufacturers are basically "borrow", buy a lot of equipment, buy back its chip packaging from abroad, which increased the LED production costs, reduce the profits of enterprises; and because of its technical level is low, in the mainland enterprises after packaging, the chip quality decline, shorten life, maintenance cost is very high.

According to statistics, in the first half of 2011 LED industry contracted planning investment of 118 billion 498 million yuan, an increase of 26%, but the downstream market is clearly not open. The first two years around the country to compete in the introduction of LED investment planning and construction capacity has been far beyond the actual needs of the market. The company's LED products are more dependent on local government departments to digest the municipal works, and by the impact of the international market weakness, LED exports have suffered poor.

The industry believes that the 2011 LED industry costs, profit decline, overcapacity, SMEs difficult. In 2012, overcapacity situation will continue.