The industry boom is behind the early warning of accounts receivable high bad debts "

Why pay attention to accounts receivable? In an increasingly competitive market situation, on the one hand, to win more customer orders, many enterprises are given preferential lending conditions; on the other hand, the customer accounts in arrears, liquidity Zhanya enterprise. If the overdue accounts receivable form of bad debts or even dead, the consequences will be unbearable to contemplate.

Recently exposed Dongguan Yongxing electronic suppliers 8 million yuan in arrears and the purchase of bank loans of $about 20000000, the boss because of arrears on foot, which also reflects the risk of accounts receivable, A owe B, B owe C, C owe D...... Vicious cycle triggered by the butterfly effect is difficult to measure.

China LED network editor found on the monitoring of 16 LED business to the main business of listed companies, although more than 80% of the enterprises in the industry to break the "hard to increase income and increase profits" curse, "in both income and increase profits of Double Happiness performance. However, the fact that behind the bustling accounts receivable surge can not be ignored.

High accounts receivable

China LED network editor by combing the 16 listed companies in 2014 semi annual report, which has 14 companies accounts receivable balance at the end of the period increase compared with the beginning of the period, and an increase of more than 20% have 11, the highest growth rate for the photoelectric, the increase in accounts receivable from the beginning of the period of 246 million to 371 million, an increase of 50.42%. Accounts receivable total assets ratio of more than 20% of the 4 companies, of which the highest is Lyad, accounting for 30.05%, followed by flying, and the construction of Ruifeng poly.

It is worth mentioning that the cumulative number of accounts receivable has exceeded the current period (2014 1-6 months) operating income. Lyad and 412 million of current revenue, accounts receivable 484 million; photoelectric revenue of 340 million, accounts receivable 371 million; KingSun revenues of 480 million, accounts receivable 580 million; changelight revenue 199 million, accounts receivable 358 million; HC semitek revenue 304 million, accounts receivable 338 million.

Comprehensive statistics found that the cumulative accounts receivable of these 16 companies reached 6 billion 860 million, an increase of more than the beginning of the year of 1 billion 329 million, an increase of up to 24.11%, an increase of 5 billion 531 million.

However, the increase in accounts receivable does not seem to reduce the pressure on the stock. According to statistics, 16 companies have 15 business inventories at the beginning of period inventory changes than positive, the China star power and Alto electronic inventory changes more than 46%.

Look at the first half of this year, the bad debt reserve and net profit, Chau Ming technology reserve for bad debts 17 million 410 thousand and 900 yuan, the first half net profit of only 23 million 831 thousand and 500 yuan, the photoelectric reserve for bad debts 25 million 590 thousand yuan, net profit of only 31 million 20 thousand yuan; Lehman photoelectric bad debt reserve of 12 million 920 thousand yuan, net profit of 18 million 830 thousand yuan; Riyadh bad debt reserve 40 million 290 thousand yuan, net profit of 53 million 990 thousand yuan......

Loan sales ills

Behind the high growth in the LED industry, the most lingering nightmare is the presence of a large number of accounts receivable and inventory. "A Shenzhen LED company official said in an interview," in fact many manufacturers of accounts receivable has become uncollectible debts, once the crisis erupted, many manufacturers now seem glamorous, its life will immediately stop, this is absolutely not alarmist. "

Wang Peng, deputy general manager of lion lion optical China LED network editor in an interview also said, accounts receivable is too high risk. "He said, LED industry accounts receivable generally increased with the overall market environment, due to fierce market competition, in order to seize market share, many companies have started in the" price and payment "efforts.

In the payment model, the use of loan sales (ie installment) is the most typical to display the field. It is understood that the current LED display companies in the field of payment models are used for loan sales, that is, the first part of the first part of the customer, to be part of the installation of the project to pay part of the payment, acceptance and then pay the tail. "And the specific ratio varies according to the different engineering customers. An industry veteran said.

Loan sales can indeed bring more opportunities for more companies, but the risk will increase. Wang Peng frankly, do not say that accounts receivable, the proportion of bad debts in the display area is very high, but we do not want to admit it. "

On the other hand, the money is not returned, the other side is not yet out of arrears. According to statistics, 16 listed companies in 15 increase in accounts payable is at the beginning of the period, including an increase of more than 30% of the 7, the highest for the rectangular lighting, its accounts payable from 264 million at the beginning of the period increased to 144 million, an increase of 82.08%. But the list display field, the five listed companies in four of the increase in accounts payable is at the beginning of the period, a large increase in the Lehman photoelectric and Alto electronics, an increase of more than 38%.

"If the assets of the enterprise is better, the accounts receivable is not more. But if the debt is high, and its assets are in debt, it is dangerous. Wang Peng said.

"Cash sales" feasible?

In fact, many companies have long been aware of the risk of loan sales brought about by. Aforementioned industry veteran said that many years ago, his business in a major project in the bid, but later found by investigation, because the other payment is very unreasonable, so we gave up the project. Now we are not doing anything, depending on each other's credit situation. "

Since the loan sales model there is a greater risk, in addition to the transaction process to pay attention to examine each other's credit situation, there is no other