LED display industry continues to suffer from painful vision and electronic closure

The slowdown in industry demand and the low price of the industry have led to the continued reshuffle of the LED display industry. Following the collapse of Duo Duoli and Bolunte last year, Shenzhen has another medium-sized LED display manufacturer, Vision Jingguang Electronics Co., Ltd. (hereinafter referred to as “Vision Optoelectronics”).

Another fallen
According to media reports, Vision Optoelectronics officially declared bankruptcy on June 29. The LED production company with assets of more than 100 million yuan and more than 400 employees has not paid wages to workers since April this year. At present, Vision Optoelectronics' wage arrears amounted to more than 20,000 yuan, in addition to the factory renovation of more than 380,000 engineering funds.

The company's financial manager said that the company's failure is largely due to the difficulty of SME loans. They used to get a loan from Hangzhou Bank, and now they are more afraid of Hangzhou Bank to collect debts.

The reporter inquired from Shenzhen Credit Online that the legal representative of Jingguang Electronics is Xing Yi, whose company address is in Guohong Industrial Zone, Qinghu Road, Longhua Street, Baoan District, Shenzhen.

Many industry insiders revealed that Xing Yi is a native of Sichuan and has worked in Shenzhen Zhouming Technology Co., Ltd., one of the leading LED display companies in China. In 2005, Xing Yi founded Vision Light Electronics, which mainly produces various indoor and outdoor LED displays. A considerable number of products are exported to European and American markets, and have also set up branches in Hangzhou.

A person who worked with Xing Yi said that Vision Light Electronics has experienced many changes in shareholder structure in recent years, and shareholders are competing for profits, which makes the funds tight.

"The closure of Vision Optoelectronics is essentially because there are many competitors. Everyone disregards the quality and competes at the low end. There is no profit." Zhang Xiaofei, Dean of the High-tech LED Industry Research Institute, pointed out to the newspaper that the capital chain was broken and owed. Domino effect such as upstream out of stock and stop production.

A supplier told this newspaper that Vision Optoelectronics is a family-owned company with weak comprehensive management capabilities. They no longer supply Vision Optoelectronics at the end of last year.

It is understood that the owed money of Vision Optoelectronics to Hangzhou Bank may be as high as tens of millions of yuan.

In October last year, Chairman Mao Guozhen of Shenzhen Duodoli Industrial Co., Ltd. “running the road” caused vibration. All of them were poorly managed, and the wages of more than 200 employees were about 610,000 yuan. They also owed a bank more than 20 million yuan in loans and were surrounded by more than 30 employees and suppliers. Today, the vision of optoelectronics has fallen.

Industry shuffling
Zhang Xiaofei believes that this year LED display companies will have obvious reshuffle and integration. "Vision electronics electronic closure is a precursor, it can squeeze into the top 50 in the domestic LED display industry."

The LED display industry has bottomed out, and the industry's profit margin is only 5% to 7%, which can reach 10%. Zhang Xiaofei believes that with the modularization of components, the LED display industry has become an ordinary manufacturing industry, relying on labor to assemble.

"The competition is too fierce, and the price war is very powerful." Zhang Xiaofei said that many projects are bidding by more than 10 production plants, whoever has a lower price and takes orders.

With the gradual saturation of LED screen demand and lower prices, at the end of 2011, the proportion of display screens in LED application output fell to 19%. In contrast, the proportion of LED lighting continues to rise, and its output value has exceeded the LED display.

"I can't hear a LED display factory saying that I am very happy this year. The situation of bankruptcy will happen." Zhang Xiaofei said that this will affect the upstream, and the accounts receivable will be risky. The upstream worried about being owed money downstream, speeding up the collection of goods, will make some LED display funds more tense.

Zhang Xiaofei asserted that there are more than 600 LED display-related enterprises in Shenzhen, and it is normal for 10%~20% to suffer reshuffle.

At present, there are many listed companies with LED display as their main business, including Zhouming Technology and Lehman Optoelectronics. Abissen, another LED display manufacturer in Shenzhen, is in the process of queuing. It is understood that there are more than 30 LED display companies with a production value of 100 million to 200 million in Shenzhen.

"There will be polarization in the future, some companies will emerge, and some will be cleared out." Zhang Xiaofei believes that the emergence of ST companies in the five-year LED listed companies is also normal. "The problem is that in order to rush to the performance, the low price is high, resulting in low added value."

In the first quarter of this year, Zhouming Technology's revenue and profit both fell, revenue fell by nearly 17%, and net profit fell by 80%. The company is accelerating its expansion into the field of LED lighting.

The above suppliers have called for the LED display industry to have passed the period of rapid development, and the industry should return to rationality.

A Shenzhen-based venture capitalist who has been paying attention to the LED industry for many years believes that LED upstream chips are controlled by large industrial groups in Europe, America and Japan. Most domestic LED companies are concentrated in the middle and lower reaches. The downstream technology content is low, the demand growth is slowing down, the number of interventional manufacturers is increasing, the competition is fierce, and the cost cannot be controlled.

"But a company does not represent an industry. The LED industry is still a sunrise industry." He suggested that the domestic LED industry should break the foreign monopoly and promote the development of domestic LED chips; at the same time, it will extend to the LED lighting field with great potential.

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