November 29, the weather is rain, Shenzhen gathered more than 100 suppliers in front of the Civil Center, holding “security – big horizons return my hard-earned money” banner, it is particularly striking. The presence of a packaged device suppliers said that they hope the city government come forward and give the supplier a word.
This reporter has learned that, Shenzhen vision Photoelectric Co., Ltd. (hereinafter referred to as the “horizons”) is a typical representative in one of the South China LED display industry. Industry sources said that, the 2011 horizons sales reached 3 billion, which belong to the LED lighting display industry. That is, in January 2011, the one who has always been good, and mergers and acquisitions of Security Technology (China) Co., Ltd. (hereinafter referred to as “CSST”) to acquire a 70% stake in the big vision.
“At that time, when CSST shares directed to the LED concept heat. They hope to be able to put the big vision into the company’s overall package listing plan” One person said, before the CSST shares, big vision actually already stuck in the fund predicament.” And at that time, the company and CSST is signed agreement on gambling, but for the company, after all, it is a life-saving straw.
However, in recent years, the domestic LED lighting display industry competition is intense with each passing day.
In 2012, the LED Tube display industry makes price war greatly. With a strength of the manufacturers hope to through the price war to eliminate a part of small scale manufacturer. The LED display screen which has entered the period of integration presents the situation of contention of a hundred schools of thought. But by the factor of slowdown, hair falling interest rates, LED display screen are difficult to have investment opportunities.
The High technology LED Industrial Research Institute (GLIT) released the latest display industry report, 2012 domestic LED display prices continue to fall, year-on-year decline in 15%-20%. At present, the main channel of the LED display manufacturer’s product gross margin level has been reduced to 10%-15%. Engineering channel product gross margin is still more than 20%.
At this time, big vision of “great leap forward” sales strategy, not only cannot play “self-help” effect, but let the company bogged down in the more serious capital predicament.