Dongguan small and medium export enterprises survival sample: LED low-end dilemma ups and downs

In Dongguan Changan town of Sha Tau village head Li community bury Industrial Park, Mercedes Benz trucks, huge machines roar as is the way to show the existence of the world factory. Phaeton photoelectric company in a corner of the park, the humble.

Tang Jia founded in the end of 1999 the LED enterprise, the first year sales of more than 5 million yuan. And now, he is feeling the coolness of the LED market downturn.

In 2009, the industry profits generally reached 20%-40%, now is a single digit. "Tang Jia is very worried about it.

Dongguan enterprises are a part of China's LED industry. At present, more than 80% of domestic LED enterprises rely on exports to make a living, in addition to a single reduction, the domestic commercial market growth is relatively slow, the entire LED companies are facing increased competition and market shrinkage of the double risk.

Profit decline

Dongguan has more than and 300 LED companies, an increase of about 30% over 2010, more than 90% of the products are mainly in the face of the international market.

Located in Dongguan City, the cold light technology sales in 2010 has been over ten million, and its export orders up to 95%. "The future of this ratio is not changed, because the domestic market is not good to do. Zhong Hong, head of the company explained that Europe and the United States, the highest profit margins, extremely insensitive to price.

In contrast, the current LED lighting in the domestic market is mainly used for municipal engineering, commercial market is not fully open. While the market is small, the competition is fierce. For example, there is a list of a market, there are fifty or sixty companies went to quote, customers have no loyalty. Zhong Hong said.

Phaeton OPTOELCTRONICS has more than 80% orders for export, 20% in china. Tang Jia said that the impact of exchange rate fluctuations on the profit is considerable, in January last year, the U.S. dollar against the yuan is 1:6.6, now reached 1:6.3, is affected by the 3-5%'s profit.

Tang Jia emotion, slow growth in orders at the same time, the cost is growing.

"I total gross profit of 25% last year, but excluding 12% artificial, factory, sale, rent, tax management costs, net profit of only 12%. Tang Jia said that 12% of the profits, including the provision of insurance, as compensation for defective products.

Labor costs are rising is the most obvious one.

Phaeton OPTOELCTRONICS 2011 common wages for 1350 yuan / month, now raised to 1500 yuan / month, accommodation all inclusive, there is another performance appraisal of 100-1000 yuan / month. As the main export oriented, so overtime also occupy an important share. The average worker's salary is 2650-2850 yuan / month, up 10% from last year. Tang Jia said.

In addition, energy prices, such as water charges for 3.3 yuan / ton, compared with 2010 rose $0.3 / ton. Tang Jia said, now only to streamline the workforce, a person doing three things. "

Shuffle speed

According to the disclosure of the annual report data of Listed Companies in 2011, LED lighting companies showed overcapacity: Lehman photoelectric, optoelectronics, KingSun, changelight inventories were 100 million yuan, 918 million yuan, 164 million yuan and 127 million yuan, an increase of 73.31%, 195.88%, 61.58% and 219.16%.

Relevant statistics show that only in 2011 1-7 months, China's LED industry plans to invest a total of up to 125 billion 618 million yuan.

Tang Jia said that although overcapacity, there are still funds invested in the industry, including the traditional light source companies have set up their own LED division, resulting in increased competition.

Zhong Hong's view is that the European debt crisis is not the biggest impact of small businesses, but large enterprises, small and medium enterprises is a good thing". Large business orders for the European and American giants, while small businesses face retail orders.

On the other hand, due to cost factors, large enterprises, such as access to orders, will look for a lower cost of small factories. However, due to the huge number of downstream factors, the current domestic tens of thousands of LED companies are at a loss, and even many companies are faced with out of the dilemma, and most of those who are in the packaging and downstream links.

10% of the industry's profits in the packaging and downstream links, but this link has focused on the enterprise of 90%. Zhong Hong said that the lower barriers to entry into the lower reaches of the industry, you just need to find a room, put all things to buy together on the list".

According to the plight of small and medium-sized enterprises, Dongguan city has a number of supportive measures, such as if classified as private technology enterprises, to Mumbai, Dubai, Las Vegas and other exhibition booths can be 50% subsidies, in addition, in the Alibaba, global resources, China manufacturing three websites do abroad can enjoy subsidies and so on platform 50%.

Tang Jia believes that at the same time, the financing of small and medium-sized enterprises is the most need to solve the problem, "now give us this more than and 60 small business loans, credit only sanwushimo million, the amount can help enterprises solve more difficult? "