“Some of the production of traditional lighting manufacturers, with the casual you can do.” Who has been involved in a LED high hat lighting companies IPO investment bank, told reporters LED middle and lower part lower barriers to entry, leading to the corporate good and bad.
Investment Advisor in Senior Fellow in China believes that the overall overcapacity gave birth to the frequent outbreak of a price war. The end of 2011, two LED companies in Shenzhen Jun more than stand and Texstar declared bankruptcy, is subject to a price war. 2011, denominated in a single LED chip prices compared to 2010 fell 25% to 30%, the impact on corporate profits is considerable. “Statistics show that in 2011 downstream application industries listed and unlisted companies the industry average gross profit margin of only 15%, 2009-2011 China LED (light beads industry) gross margins continue to decrease, and the annual average reduction of over 13%.
Shenzhen LED Industry Association, China’s LED high hat lighting industry plans to add a total investment of over one hundred billion yuan last year, but according to statistics, the actual investment is far less than the expected amount of investment, the actual production capacity is less than expected production capacity, so the actual overcapacity and imagine so. “As the led high bay lighting industry through a high-speed growth, in the case of the production capacity reaches a certain saturation, product price reduction, the decline in corporate profits but also conform to the trend of industrial development.”
It is reported that the tender subsidy funds will take the indirect way of subsidies, financial subsidies to successful enterprises and successful enterprises successful agreement supply price minus financial subsidies, the price of sales to end users.