At this year's two sessions, the clearing of the market by zombie companies has become a key issue raised by several NPC deputies. In the Fourth Session of the 12th National People's Congress of Guangdong Province, Governor Zhu also clearly stated that he would let the zombie enterprises completely withdraw from the market. Guangdong, especially the Pearl River Delta region, is the most concentrated area of ​​China's LED industry. So, in the LED display industry system, is there some relatively backward production capacity? First, let's first look at what a zombie company is. Zombie companies, as the name implies, are no longer viable, unable to pay their debts, and can only rely on new and old companies. One thing that these companies have in common is that cash flow can't repay interest, and it can only be borrowed from new ones, and debts grow with compound interest. Can not be denied, in the LED display industry, cash flow is also a pain point for some enterprises in the industry, and companies that have closed down due to the break of the capital chain have appeared too many. Nowadays, the development of the LED display industry has gradually revealed the phenomenon of excess capacity. The evolution of the price war has made some excellent companies miserable. If you do not deal with the 'zombie enterprise', you will combine quality enterprises with the whole industry. Drag and drop. In the past two years, we have also seen that the entire LED display industry is entering an accelerated integration period. Some enterprises are also being phased out in this process. However, under the trend of the big Evergrande, some companies are struggling to maintain a debt. Business. Therefore, “zombie companies†are turned off to make resources more efficient use and configuration, thereby increasing productivity. Governor Zhu of Guangdong Province said: "In my opinion, those companies that have no market and no market, but are still dying. It can be said that these enterprises not only do not create social value, but also waste a lot of social resources and bring Excessive social production capacity. Then, such enterprises must be completely retired from the market through restructuring, bankruptcy, etc., in order to effectively resolve the problem of overcapacity." According to reports, Guangdong Province will establish a state-owned and non-state "zombie enterprise" database until the end of 2018, basically realize the "zombie enterprise" market clear. Among them, by the end of 2016, all the relevant enterprises in the province had been cleared, and the disposal mechanism of non-state-owned “zombie enterprises†was basically established; at the end of 2017, the state-owned and special enterprises in the province were basically relieved. "Guangdong Province Supply Side Structural Reform to Capacity-Out Action Plan (2016-2018)" pointed out that the company mainly maintains its production and operation by means of government subsidies or bank renewal, and its asset-liability ratio exceeds 85% and continues to lose more than three years. More than 3 years of wage arrears, tax owed, interest due, arrears, production and operation difficulties, resulting in industrial enterprises above designated size that have been suspended for more than half a year or semi-discontinued for more than one year, further accurate identification. All localities also need to establish a single "zombie enterprise" file, which lists the total assets, total liabilities, arrears and taxes, property rights, number of people to be resettled, and expenses. Jiangsu Bosiwei Optoelectronics Group Co.,ltd , https://www.bswledled.com