The main tone of the LED market in 2013

LED lighting (light-emitting diode (LED) lighting) are known as “the fourth-generation light source, however, in the past two years, the domestic LED industry has suffered serious overcapacity embarrassment. Major LED companies recently released 2012 annual report, the results of the general downturn. Industry forecasts, The LED industry structural overcapacity situation will continue in 2013, related businesses will continue to digest inventory by cutting prices in order to gain market share.

The main tone of the LED market in 2013

Annual Report gloomy capital market sluggish performance

As one of the strategic emerging industries, LED market industry triggered investment boom in the country in recent years, and became the darling of the capital market. However, since 2012, the industry suffered a widespread “were praised” the embarrassing situation, each company recently released 2012 earnings data, which is not satisfactory.

And compared to 2011, the number of LED companies regardless of revenue or net profit in 2012 showed a marked decline. Such as the renowned LED chip enterprises BDO Runda, 2012 revenue is 2.824 billion yuan, a year-on-year decline of 8%; net profit of 168 million yuan, a year-on-year decline of 57%. Silan revenue fell 12.74% in 2012, net profit fell 88.07%. Country Star Power 2012 revenue fell 11.87%, net profit fell 66.45%.

For the declining reason, the explanation given by the various companies in general is that: the impact due to intensified competition in the LED market, the company product price is likely to drop sharply, thereby squeezing profit margins.

In 2012, the domestic A-share market performance “Face King” emerged LED stocks phenomenon. Following the 2012 SFC punished of LED stocks, recently SFC 2013 throw out the first punishment. Its sponsor Pacific Securities and sponsor representatives to take punitive measures.

On the downturn of the adverse situation of the market, the successful IPO in 2012 will significantly reduce the number of LED market. In the year of 2011, there were over 13 LED-related domestic companies shutdown. And in 2012, only four company ROC in 2011 up to 13 LED-related companies over will, in 2012, there were only four.

At the same time, the additional fund-raising plan of LED listed companies are also forced to mortality. Recently, domestic LED leading enterprises Sanan Optoelectronic announced that as the market environment has changed, the company decided to terminate the two-year public issuance of A shares.