Industry news

2016August

Integration is still a big choice

From: www.szbako.com Data:29/08/2016

previously, for the LED industry has many predictions: that Taiwan EPISTAR chairman Bingjie, subsidies for the LED industry in China is coming to an end, 2015, chip companies may will be only five. LED industry is facing a serious problem of excess production capacity, whether led enterprise willing or unwilling, enterprise elimination, merger and integration will be staged one after another, LED industry is bound to experience a nirvana.

market demand is lower than expected decline in corporate performance LED from

packaging companies look, according to statistics of the domestic packaging companies more than a thousand, the strength is uneven. The first quarter of this year April earnings data of the LED package listing Corporation announced a gathering clouds and rolling mists. Data show that, in addition to Mr. Lehman photoelectric /net profit compared with last year rose slightly in 0.15%, net profit for the three country star photoelectric, honglitronic, Ruifeng photoelectric company in the first quarter of this year appeared different degree of decline. For the decline in the company's profitability, the company's disclosure of information related to the disclosure of information, there are two main reasons: the first is the impact of the international financial crisis; second is the domestic LED market demand is lower than expected.

from & ldquo; domestic market demand of LED lower than expected & rdquo; for this reason also can analysis out another problem, that is, the industry generally believe that the domestic LED market demand, are in full swing into production to, only to find that the market is not as expected as strong, product sales do not go out, capital chain problems, can not be put into normal operation to, appear to be integrated in the collapse or the edge, these phenomena in the industry also exists. Mr. hiboled photoelectricity /before the collapse, bons Optoelectronic Technology Co., Ltd. also intends to help hiboled photoelectricity to, to take over the production line, and the in-depth cooperation. But in the end the possehl and no Haobo together, because of their serious problems cannot Haobo down regulation.

recently, in 2012 annual report or the results of the disclosure of the results of more than 10 LED listed companies, compared to last year, the general decline in profitability of about 30%. In 2013, the market situation is bleak, so many large enterprises have been declining profits, LED companies to be listed on the speed of slowing down, some companies even terminate the listing of the road. These companies are disclosed in the industry or a large share of the market share of large enterprises like this, small and medium enterprises profitability is better than where. According to such employees said, where he had led enterprises due to capital chain problems have suspended operations, although this eventually proved to be false information, but the business profits decline, it is an indisputable fact, the enterprise responsible person said compared to the first quarter of last year, corporate profits dropped tens of millions of dollars.

market competition intensifies the integration of enterprises have an example to learn LED

industry is still in the growth of the overall. According to statistics, in 2012, China's LED indoor lighting output value of 33 billion 500 million yuan, an increase of 80%. High industry LED Industry Research Institute (GLII) is expected in 2013 China's LED indoor lighting output value is still maintained a rapid growth trend, will reach 55 billion 700 million yuan, an increase of 66%. Jiuzhou photoelectric general manager Xie Yongjun said: & ldquo; the whole industry is growing fast, but the market growth is not keeping pace with investment growth, enterprises had to call in a price war. Last year, LED lighting industry in terms of product costs fell by about 20%, but the price decline is greater than the terminal, up to 40%-50%, shrinking profit is inevitable ”.

market growth can not catch up with the growth of investment, which means that the increased market competition. Now many companies said they would not to participate in price war to go, but in the political arena involuntarily, some enterprises in the quality of the products almost go to reduce your price to win more orders in the market, other companies will not be not affected, insist that their products are not price this way is not conducive to the enterprise market sales, it will also hinder the development and production of their own. In order to survive and develop, the enterprises will lower the price of the products to sell their products. Such a price war makes the company's profits shrink, profit margins are difficult to survive, looking for other survival mode is inevitable.

to seek cooperation between enterprises has become an important way to enhance the competitiveness of LED enterprises. Through the technical cooperation between enterprises, or channel sharing, integration of enterprise resources, foster strengths and circumvent weaknesses better respond to market challenges, in such a way that the existing model can learn & mdash; & mdash; BDO and NVC Qiangqiang joint is very good example. Some time ago the NVC Lighting & ldquo; fighting & rdquo; let the NVC weakened, the NVC need external funding to recover himself; and BDO although in capital and technology with ease, but in the terminal sales of product is not very ideal, which contributed to the combination of the two. After the combination of NVC with BDO themselves and expand their product line, extend to other areas; BDO also with NVC channels to expand their own market, complementary advantages, happy. In the field of led some enterprises capital rich and develop market lack the furnace, some enterprises funds shortage but channel construction perfect & hellip; & hellip; under the market competition, enterprise mergers and integration is the best way to deal with.

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