The reason to come to this prediction can be summarized as the following three points:
1: the shortage of domestic talent, the country’s strong support as a sunrise industry, LED industry, the domestic enterprises herd redundant construction, not only talent ‘poaching’ phenomenon prominent; some accumulation of capital to make RGB led downlight after a sale to influence the market; more the enterprise is purely to defraud the government holding the LED of the first support funds. ”
2: The threshold is too low, many companies do bad RGB led downlight market is definitely good for the industry, the introduction of relevant policies, but did not implement. Local government if you do not examine whether the LED business is truly master the core technology, or the existence of idle land, capital, equipment, too many enterprises to enter the industry can only do bad market! The access threshold of the government audit LED business to improve, and to moderately reduce the tax burden on the LED business. As for the funding of government subsidies, the current situation is no standard no rules, loosely organized, no one to guide the development of routes allow enterprises to fend for themselves, but the government capital subsidy standards should be re-enacted.
3 exports: in the context of the European debt crisis, this year’s overseas economic environment is not good, while exports of the main exit of the Shenzhen led high bay products. In the early years, the export of Shenzhen LED products mainly exported to up to 80% to 90%; this ratio data declined only modestly from the previous year, is currently about 80%. The poor economic environment, the export of LED products have certainly been affected, and appreciation of the yuan, also greatly reduced the profit margins of these LED business.