LED industry is difficult to spend the long winter

The LED insider informed, there have been four hundred million yuan LED enterprises facing funding problems. In fact, since one year time, due to the funding problems, a lot of LED small enterprises go bankrupt. They are Quietly closed their doors, and these enterprises have little effect, therefore, the media is also not to be reported, and it is difficult for the community to know. While LED business is experiencing a wave of closures.

LED industry is difficult to spend the long winter

Where is the core issue of the LED industry? “Overcapacity”. In the interview, the majority of enterprises are the case said. The LED’s huge market is potential, so it attracted many companies rushing into mass action blindly into the LED industry. The securities described in the research report. It is predicted that the “Twelfth Five-Year” period, LED industry is expected to achieve the goal of quadrupling. At the end of 2015, China’s LED lighting penetration rate is 20%, the industry is generally estimated to be more optimistic.

Herd phenomenon leads to overcapacity. Especially the global economic downturn let the domestic LED Products enterprises that mainly rely on exports to earnings get troubles. Domestic market is not yet open, but also makes the LED business a tough day. Yesterday, the reporter went through the third quarter reports. They found that the LED corporate profits decline very sharp.

Winter will continue for more than six months

“We are in the winter.” BONS Optoelectronic Technology Co., Ltd. Deputy General Manager Wang Peng think, LED industry need six months or a year to get out of the winter. To change this predicament, Peng believes that there are only two ways: First, the digestive capacity, so that let the quickly making fund and enterprises exit the industry, and the rest are the polished enterprises; Second, the entire LED industry “de-leveraging”, when the funds is no longer produce the high leverage of the LED industry, this industry can become the healthy development of enterprises.

The reporters found an interesting phenomenon, that is, the entire LED industry, including listed companies, are lack of money in the investigation of the LED business.