Since the beginning of this year, news of the closure or shutdown of Shenzhen LED companies has appeared. On June 29th, Shenzhen Vision Optoelectronics Co., Ltd., which was once famous in the industry, suddenly declared bankruptcy. This LED display company with sales of 260 million yuan in 2007 and 2008 was poorly managed due to poor management. The price war led to problems such as low profit margins, and ultimately failed to escape the fate of bankruptcy.
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Prior to this, Shenzhen Dingli, Shenzhen Borent and other large-scale LED enterprises in China have closed down, the reasons are nothing less than poor management, capital chain break. Not long ago, Shenzhen Haobo Optoelectronics Co., Ltd., which mainly engaged in LED display, was involved in debt disputes due to arrears of huge supplier payments and employee salaries and commissions.
LED companies lacking core technology innovations are getting worse and worse. China's LED industry has entered the era of low profit, although the "12th Five-Year Plan" for semiconductor lighting technology development has clearly promoted China to become the world's top three in the industry. The attractive prospects, but the strong LED industry in Shenzhen, but also had to take the lead in the country to experience the "darkness before dawn" period.
According to statistics, there are 1,800 LED companies in Shenzhen, accounting for 60% of the total number of LED companies in China. In 2011, the output value of these enterprises reached 70 billion yuan. In the same period, the output value of the LED industry in Guangdong Province was nearly 150 billion yuan, and Shenzhen accounted for about half of the province. At present, there are about 20 LED listed companies in China, and Shenzhen accounts for about 10. In a certain sense, the LED industry in Shenzhen has a standard meaning for the national LED industry.
Industry enters the era of low profit
There were very few companies that entered the industry in the early days. In 1994, there were few in the country, and Shenzhen had only two or three. At that time, due to the difficulty in research and development of key technologies, companies that can produce LEDs almost all had research and development capabilities, especially the control technology was only in the hands of a few companies.
In the 1990s, LEDs existed as “scarce goods†only in a few places such as banks and stations. Due to the low price of raw materials, the difficulty in research and development of key technologies raised the terminal price, which led to the “significant†LED industry in the market.
But competition among companies has intensified the civilianization of the LED market. According to reports, since 1997, the phenomenon of technology transfer with key technologies such as single-color control cards has begun to appear in the market. By 2001, it was developed to the stage where even color control cards were sold in the market.
By 2006, after the control card technology was gradually mass-marketed, the key technology research and development costs of the LED industry were reduced to the most thorough, and the number of LED companies in China began to grow at a geometric level. A series of large-scale events such as the 2008 Beijing Olympics have given birth to the rapid development of LED companies and reached a peak in 2009.
From 2007 to 2008, LED display prices are higher, profit margins are larger, and the product price gap between enterprises is also very large. As consumers pay more attention to product quality, the competition in LED industry is becoming increasingly fierce. Some small and medium-sized enterprises have been hit hard by the price and scale, which is the most fundamental reason for the collapse of some small and medium-sized enterprises.
Wang Dianxi, honorary president of Shenzhen Semiconductor Lighting Industry Development Association, said that in the context of the bankruptcy of small and large enterprises such as Duo Duoli, Bolunte and Vision Optoelectronics, there are not many unseen small enterprises that have fallen. The timing of shuffling in the LED display industry has matured, and once a company has made major mistakes in its operations, it will be swallowed up quickly.
The lack of core technologies in the LED industry, insufficient innovation capabilities, and disorderly competition in the market are taking advantage of the development of the LED display industry. LED industry prices have entered the "micro-profit" era, and must make breakthroughs in product innovation. 