LED industry will spread the spread of debt restructuring will accelerate

Winter, surplus, the current LED industry reshuffle has become a keyword. LED industry in 2012 was not as expected, ushered in a complete pick up, still in the bottom of the trek. Triangular debt plagued many LED companies. In 2013 the industry will accelerate the "shuffle", and in the integration of "dense willow trees and bright flowers? Triangular debt spread over the past six months, 'triangle debt' phenomenon is very serious." Intel (Shenzhen) Co., Ltd. General Manager Liu Xiao lamented that. This is one of the main suppliers of fluorescent powder in the domestic LED industry, but also for the triangular debt and feel headache. At the second G20-LED summit in December 14, 2012, Liu Xiaoda complained: "the recent situation is worrying. May be the supply of many manufacturers, not to pay before the goods, and now take the goods do not give money, then go looking for another." And, the accounts are long. Accounts generally 60 days, the actual 180 days, or even 200 days." Liu Xiao said, the more serious problem is that the renminbi is gone, I have to accept a bill of exchange." This is like a drum pass flowers, customers owe the money to apply the product business, the application of the product companies and the money owed to the packaging factory, packaging factory can only owe the money upstream suppliers. Triangular debt arising therefrom. According to industry analysis, as of the end of the third quarter of 2012, LED based business of Listed Companies in the balance of accounts receivable of up to $21, payable balance reached $3 billion 483 million yuan. Among them, the total accounts receivable accounted for three of the total revenue of the company in the first quarter of 89.13%. Behind the surge in accounts receivable, the LED industry overcapacity in all aspects of competition. In order to avoid being "triangle debt" drag, 20 LED companies launched the G20-LED summit has plans to build an interactive communication platform, each other between enterprises, enterprises will owe a blacklist to control risk. Reshuffle accelerate the industry said that in 2012 the total output value of the LED industry from 154 billion yuan in 2011 to $205 billion 900 million, the price of the package fell by 40%, chip prices fell by 30%. 2012 LED upstream of the production of MOCVD epitaxial film from 803 to 917 units, an increase of 114 units, which is the largest equipment investment is the fastest." It is understood that the mainland MOCVD machine capacity utilization is only about 65%. Wang Lianghai, vice president of the same side Limited by Share Ltd believes that the upstream chip companies have been transferred to the cost of competition from the technical competition, LED chips are entering the era of meager profit or even unprofitable. Another background is the China reshuffle, LED industry is still a government dominated market, civil market needs to be activated, the commercial market started, a large number of projects need to rely on the orders and policy support from government. The large enterprises with technology, resource advantages, will get more government orders, the lack of technology, the brand of small and medium enterprises are relatively difficult to get government orders. In this case, the LED industry will form a strong constant strong polarization pattern. The wave of restructuring difficult times, brings opportunities for the LED industry mergers and acquisitions. Reorganization between the upstream and downstream enterprises, as well as upstream enterprises to accelerate the infiltration of the downstream, become the focus of this round of restructuring. In 2012, the mainland's largest Chinese LED chip enterprise shares Sanan optoelectronics canyuan photoelectric Taiwan, kicked off chip enterprise restructuring. In the second G20-LED Summit Forum, Gong Weibin, chairman of the board of Ruifeng photoelectric, LIAN, head of, said the merger of the annual output value of about 100 million ~2 billion package, the application of interest. Upstream chip companies need to seek profit support from the expansion of the industrial chain, Wang Lianghai predicted that the chip plus the application of the model will become a trend. He revealed that the same side may be from the chip to the packaging, application expansion. Downstream manufacturers too much, like more than 10 years ago, VCD, market integration is inevitable." Huizhou Hui Yuan Shi Yucan, managing director and executive vice president of Au Optronics Co believes that the entire Chinese LED industry is waiting for the market to take off." Of course, the downstream well-known companies will also take the opportunity to get involved in the LED industry, or make up their own short board. Konka Konka TV companies have shares. LED vertical integration of enterprises in industrial lighting as the representative, lacking in the overseas channels and brand building, also looking for opportunities.