More than half of LED listed companies this year, harvest or poor

The day before, LED (light emitting diode) third quarter of listed companies report shows that the number of profit plunged more than 50% into. At the same time, a number of companies accounts receivable, inventories have soared, the company's operating cash flow has been significantly reduced signs. Analysis of the industry, the entire LED market downturn, product prices continued to decline next year, there will still be a large number of small and medium LED companies face the risk of mergers and acquisitions.

The number of "double".

Domestic A shares of Listed Companies in the third quarter results in October 31st formally ending. Among them, LED based products listed companies in the third quarter earnings growth continued to slow, the majority of the company's gross margin and net profit growth rate of the overall decline in the trend. Weak economic recovery in the United States, the European Union is deeply in debt crisis, shrinking overseas markets in the background, the fourth quarter of this year, the domestic LED lighting export orders may be significantly reduced.

The author of the second major lighting exhibition in Asia - Hongkong International Autumn Lighting Exhibition - learned that compared with last year, this year, a significant reduction in passenger traffic. DGlighting (director general lighting), the company's sales manager told the author that they have been purchasing LED lamps from China for many years. This year due to weak economic growth in the United States, they purchased from the Chinese market LED lamps less than 30% ~ 50%.

According to my understanding, the domestic first part of the first three quarters of this year's lighting sales performance is not satisfactory. A large traditional lighting company staff told the author, whether it is the traditional lighting or LED lighting, foreign trade orders have been reduced trend.

Overall, LED listed companies may be more severe situation by the end of this year, early next year will be revealed. At the end of the third quarter of this year, the number of listed companies due to overcapacity and early warning slowed the pace of expansion of production capacity of domestic LED industry, the number of listed companies operating expenses, administrative expenses and financial expenses increased.

Accounts receivable growth accelerated

In the first three quarters of 2011, some LED listed companies increased significantly. In the upper reaches of the listed company, three optical accounts receivable 395 million yuan, an increase of 153.2%; changelight accounts receivable 215 million yuan, an increase of 50%. In the middle reaches of listed companies, the total amount of accounts receivable is the top of the top photoelectric and Lehman photoelectric, respectively, up to 86.4% and 69.5%. The total amount of accounts receivable of listed companies is relatively low.

Insiders said: if the amount of accounts receivable is too large, coupled with their own debt ratio is too high, then the company's capital chain is likely to fracture. He said that the third quarter of this year, Lehman photoelectric accounts receivable turnover fell by more than 41.53%, excellent rate of customers is going downhill. Lehman photoelectric top 5 customers are overseas customers, domestic customers to small and medium enterprises. With the continued weakness of the European and American economy, the overseas market accounts receivable bad debt rate is constantly increasing, the domestic small and medium LED companies face the risk of survival, Lehman photoelectric face greater risk of bad debts.

Inventory balance hit a record high

Incomplete statistics show that in the third quarter of this year, LED listed companies more inventory. Among them, the upper reaches of the largest inventory of listed companies. An optoelectronic inventory value of 1 billion yuan, in the first row; changelight inventory balance 138.4% annual growth rate.

The industry believes that, due to the smaller LED terminal market, investment and overheating, resulting in large-scale production capacity of the current market oversupply. Recently, the national development and Reform Commission issued a phase out incandescent roadmap, which is a major positive for LED lighting products. But at present, China's LED lighting technology is not the same, the price is more expensive, the possibility of mass market is not large.

Due to the terminal market is unlikely to change, and the upstream overcapacity market will continue, so manufacturers inventory will increase. In order to reduce the pressure on the stock, the manufacturers will inevitably reduce prices to deal with the product, the market price of LED upstream products in the short term will continue to decline, the phenomenon of cash flow of major companies will further spread.

Operating cash flow

Listed companies in the third quarter of this year, the annual report data show that in the case of inventories continue to increase, the majority of LED listed companies operating cash will be further reduced. Senior financial analysts said that if a company's operating cash flow is negative, indicating that the company's continued survival pressure is increasing. The third quarter of this year, the number of Listed Companies in the total debt is large, such as the third quarter of this year the debt of up to 3 billion 890 million yuan, an increase of 47.01%.

In the high debt, while the impact of monetary tightening, the amount of financing LED listed companies are also narrowing. In October 9th, Elec-Tech intends to make a public offering of not more than 900 million yuan of corporate bonds in the report was rejected by the commission. During this period, a number of listed companies have also lowered the amount of financing LED raised investment projects. Under the premise of tight monetary policy, corporate financing channels narrowed in the fourth quarter of this year, corporate capital turnover is relatively difficult to further highlight the operating difficulties. Domestic LED market downturn has become a foregone conclusion.