Lower profits tyrant mentality LED companies will bankrupt

Since 2011, junduoli, vision, photoelectric Bont, hibo photoelectricity, vision, billion light failures, ten party photoelectric LED display and a number of enterprises have closed down, ray star power, Zhongshan xiongji lighting factory did not stick to the LED lighting into the civilian market dawn, Qili photoelectricity, LED grain factory in Taiwan Zhongshan Shihao epitaxial factory bankrupt, shuffle the shadow has been shrouded in the LED industry, manufacturing enterprises LED in 2012 collapse of Shenzhen has already reached more than 80, in 2013 the LED industry ranked ten Chinese going bankrupt industry Zaixian "in a storm...... LED industry reshuffle clouds in the short term does not seem to intend to subside in the industry increasingly fierce competition situation, who can dominate the ups and downs? Who will become "cannon fodder"? LED industry bankruptcies has been followed for two or three years, when we again pulls LED of the bankrupt enterprise "score", the immediate situation has gradually clear.

Tyrant style management companies can not afford the great leap forward!

Shenzhen hiboled photoelectricity Co., Ltd, established in 2006, more than 15 thousand square meters of industrial plants, won the "Shenzhen famous brand", "good faith demonstration enterprise", "China famous brand" and other major awards. However, in 2012 of November, the company closed down because of the capital chain problem has been full of orders. Before the establishment of the Shenzhen hoppt junduoli industrial group, the company has been in the country before the bankruptcy has four production bases, high-end LED photoelectric products production equipment more than 100 sets of Holland ASM import company consisting of automatic LED dot matrix, SMDLE and LED display automatic placement and other production lines. Just as in 2013 LED industry xiongji lighting the same scale of billions of dollars. There is no profit orders, there is no income funds, there is no combat strength, which is a common problem for most LED companies.

LED industry from 2008 began to rapidly expand, many people are caught on this express in a few years worth several times doubled. Early LED threshold is very low, invested hundreds of thousands to plant, as long as the product quality is not too bad, a year down turned millions, said that LED makes a large number of "nouveau riche" is not an exaggeration. The "nouveau riche" refers to the original village in the old society with even run amuck villain, after being the introduction of the virtual world, refer to some in the online game to spend a lot of money to the game player, the simple point that is very rich soil, "nouveau riche" most obvious sign is rich and excessive waste, flashy without substance.

To hope as an example, in 2008, the registered capital of 2 million, while in 2011 the turnover of about 200 million, in 2012 set a sales target of 500 million yuan. Subsequently, the enterprise is not only a lot of investment in the development of new products, and expand the business from the display to the lighting, smashing millions of dollars, including corporate image packaging, personnel training, etc.. And in August this year, the ten party bankruptcy photoelectric, in June of this year, which is two months before bankruptcy, in cooperation with the blue electronics developed under the name "Lanjixing 5353" has been inserted three lights, ten party photo of this product is pinned up, claiming that "three has been inserted in the future will replace the traditional 346 the lamp and indoor surface mount. "Ten party photoelectric is more commitment, three months before the release of new products will not benefit, zero profit market, with three months to open the market, in the view of many of the" aggressive "form is the main cause of its bankruptcy.

If placed in a few years ago, industry profits remained at 30%-40% high, to achieve rapid expansion of hope is not a problem. In recent years, the industry situation has worsened, allegedly, in the field of LED display, companies want to gain must maintain more than 20% of gross profit. 2011 net profit of the industry average of about 25%, but in 2012 the gross profit margin of only about 15%, the profit has been negative growth, apparently, even if the order is not enough to support the full strength of the great leap forward". And corporate managers are also like tyrant squandered, the enterprise can only be overwhelmed.

Industry profits lower financial leverage caution!

Hibo photoelectricity before the collapse, in order to fill the supplier arrears, hibo photoelectricity started borrowing customer orders down payment in advance. But because of the serious Yakuan of suppliers, suppliers began to stop delivery, although some customers pay a deposit, but did not receive the product, thus, Haobo entered a vicious spiral. Similarly, all focotex mismanagement, more than 200 employees owed wages of about 610 thousand yuan, still owe a bank loan of about 20000000 yuan, which was more than 30 employees and suppliers of "encirclement"; and 38 suppliers xiongji more than 40 million of the payment until bankruptcy is still not a fall. It can be said that behind every bankruptcy LED companies have a debt to cross the mountains, and apparently Rome was not built in a day.

The rapid development in the past 08 years to 12 years of LED display industry, many enterprises in the pursuit of market share, the use of financial leverage to the extreme, the company itself was not large enough to support such a big business, but in front of the interests of many enterprises have to venture to do. At this time the enterprise is facing debt problems, debt problems are mainly reflected in two aspects: one is owed to the bank's money, one is owed to the supplier's money. In the rapid development of the industry when the problem can not see, but when business slows or getting into debt levels, the problem becomes a barrel of gunpowder, a little wind sways grass will explode. Possehl photoelectric sales General Manager Wang Peng said: "the registered capital of only four million, while the debt rate is as high as 20 million, this is the excessive use of financial leverage performance. "

Shenzhen