Today we are concerned about the LED lighting industry. LED is a kind of semiconductor that can convert electrical energy into light energy. As the world’s most promising next-generation light source, LEDs are known for their advantages of high brightness, low heat, long life, non-toxicity, recyclability, and other advantages. It is the most promising green lighting source in the 21st century. The business opportunities contained in the industry have attracted various capital inflows. Since the first half of this year, 8 LED lighting companies have successfully listed. However, it is surprising that in the past year, this industry has not been so imaginative.
Wu Wenfeng, President of Guangdong Yayi Lighting Technology Co., Ltd.: This time, Guangzhou has just finished a Guangya lighting exhibition. The LED industry companies in China have basically participated in this exhibition. At the end of the exhibition, the organizers invited the former The 100 Chinese LED companies participated in a thank-you dinner. The host made a joke and said that the LED owners were so thin that everyone laughed. This really reflects, LED industry, the voice of this industry, everyone in this industry, is now eating well, can not sleep well, can not make money, the investment is still so big, so the bosses are thin. Although this is a joke, it does reflect the current state of the industry.
Wu Wenfeng introduced that since last year, domestic small and medium-sized LED companies have frequently closed down - in Shenzhen, more than 80 failed LED lighting companies, Guangdong Foshan, nearly 10% of LED lighting companies closed down in 2011, Dongguan, Zhongshan LED lighting companies Also fell into the cold wave of closure.
Dong Yunting, president of the China Electronics Enterprise Association, said: More than 100 companies in our midstream have closed down. This downstream company has more than 300 companies closed down, so why? From the perspective of the industry chain and the price chain, this profit is mainly concentrated in the upstream, with upstream accounted for about 70%, the middle reaches of the package is also 10% to 20%, and the application is also 10% to 20%.
According to the statistics of the Guangdong Guangya Lighting Research Institute, the 2011 annual results report released by 12 companies listed from last year to the first quarter of this year showed that only two companies maintained a slight increase in growth rate, while the other 10 companies had growth rates Different degrees of decline. However, in sharp contrast to the industry downturn, the IPO enthusiasm of domestic LED companies is still rising this year. According to the statistics of Guangdong Guangya Lighting Research Institute, in the first quarter of this year alone, there are 8 LED companies that have already been listed and have been waiting to be launched. This is more than the total number of LED companies listed in the company last year; among them, listings and conferences will be held in March. There are 6 of them. At the end of last year, there were four led companies reporting the "grand" of the meeting.
Pan Wenbo, dean of Guangdong Guangya Lighting Research Institute, is also based on LED industry in the optoelectronics industry in the past two years. The proportion of these listed companies is faster than that of any other industry company.
Wu Wenfeng told reporters that people who invest in LED can be described in various forms. They have to do logistics, do tires, and even manage the canteens to hold funds to make LED. Many of the original companies that do hardware purchase LED lamps from the upstream, after a simple assembly, transformed into a LED company.
Wu Wenfeng: I think we can use eight words to describe it as "a mess and a mess."
Zhan Runzi, general manager of Tongfang Semiconductor Co., Ltd.: What can be said now? Call the crowds, or chaos, there is no order, large-scale investment.
Obviously, the LED industry is falling into a dilemma. On the one hand, investors’ enthusiasm is high, and companies are rushing to go public. On the one hand, the profits of the industry are falling. From last year to now, there are more than 500 led companies have closed down. In the same industry, why did you stage two things at the same time? What is the reason for this? Look at the survey.
Industry insiders told reporters that the first batch of LED companies that failed to close were mostly novices who entered the industry in these two years. From 2007 to 2011, in just four years, MOCVD equipment for LED production in China grew from 50 to 720, and this year it has increased to nearly 1,000. According to the statistics of the China National Engineering Research Institute for Advanced Industrial Science and Technology, the total investment in downstream LED lighting applications in the country was 23 billion in 2010, and the investment in the application field in 2011 was as high as 40 billion.
Zhan Runzi: At the application end, especially in the lighting segment, terminal lighting market, home lighting, and positive lighting, there is not much pulling on the above. For this industry, there is still a big bottleneck in the development.
Zhan Runzi told us that the rapid increase in LED chip companies has caused serious shortage of talent and overcapacity in the industry. Starting last year, LED chip prices have fallen sharply.
Zhan Runzi: For example, at that time (2010) said that I, according to the original film, according to this to sell, sell 100 US dollars, and now my market price is only 30 US dollars, but my previous investment, my equipment, my staff It is constant, even higher than the original. This is because when the industry is out of order, this kind of talent can be said to be a vicious one, causing the cost of personnel to increase.
Duan Xianchun said that although many LED companies wear high-tech outerwear, in many small factories, several electric irons and a bunch of LED lighting parts can produce LED lamps. It is this workshop-style LED company that produces a very cheap but poor quality product that is flooding the market.
Mei Xian lighting company commercial lighting project minister Duan Xianchun: The same product, some 5 dollars, 10 dollars, and some may sell 50,100 yuan, there is such a gap. Well, this kind of low-priced product, its quality will certainly not be very good. After it has flown to the market, ordinary people still have expectations for LED. However, after he bought the product and used it for a period of time, he had problems. He would I feel that LED products are not good, not as light bulbs, fluorescent lamps.
Low-quality, low-quality LED products disrupted market prices, and consumers' trust in LED products was greatly reduced, leading to a vicious cycle. The slump in the export market last year led the LED industry to suffer another heavy blow. LED products from overseas markets, such as Christmas tree lighting appliances, are almost all exported from China. Under the influence of the European economic crisis and the inability of the US economic recovery, the company’s Orders are falling sharply, with orders in Europe and the United States falling by 3 to 50%, which is quite common in the industry.
Dong Yunting: We are too chaotic, too scattered, and companies are too weak. Therefore, in fact, these two years are actually equivalent to a batch of bankruptcy, and a batch of new ones have actually been shuffled. Through this reshuffling, they are actually integrating mergers and acquisitions. I estimate that this industry will gradually take the normative path.
The unevenness of Chinese LED companies has seriously affected the reputation of the entire industry. This has led to a sharp decline in exports by 50%. The industry is in a downturn. In the words of Dong Yunting and industry insiders, the LED industry is currently facing a reshuffle. The first to fall is the first two. Years blindly smashed gold into this industry. The downturn of some companies has brought a series of chain reactions to the entire industry. In the previous program, we saw that the LED industry is now in mourning. Within a year, more than 500 companies closed down. At the same time, however, the industry has always been able to get the lion's share of capital. In the past year, 8 companies have been listed and the over-raised funds have exceeded 4 billion yuan. Is the company that raised the fund very good?
Mr. Huang is a senior investor. Over the past few years, he has been focusing on LED listed companies. He feels that now the country has more and more support for LED companies, there are new energy concepts, the development prospects are very good, so he took himself All the stocks bought the shares of the LED company, originally hoped to allow himself to make at least a small fortune, but this time he had not wished to lose this not only did not make, but lost a lot.
Reporter: How are the returns?
Investor Huang: Recently it was a loss, about 20%.
Less than 20% of losses occurred in less than a month. This not only caused Mr. Huang to scream and misunderstood, but also began to find the reasons for his own investment mistakes. He began to pay attention to the reasons for the loss of these listed LED companies. Mr. Huang noticed that the latest data from Guangdong Guangya Lighting Research Institute: From 2010 to 2012, the gross profit rate of some listed LED companies decreased by up to 17.9% year-on-year. The net profit rate dropped by a maximum of 13.5% year-on-year. The overall sales situation of the industry is unsatisfactory, but what is most confusing to Mr. Huang is that most of the listed LED companies have not used the funds in accordance with their commitments in the original prospectus or postponed the use of recruitment funds, resulting in LED Many of the listed company’s recruitment funds, especially over-raised funds, are on the books and do not maximize the effect of recruiting funds.
Mr. Huang: Concerned about the announcements of some listed companies. Some of them may have over-funded themselves. They have some plans to implement those projects. They are worried.
According to industry guidelines, the reporter went to the LED Industrial Park in a development zone in Huizhou City, Guangdong Province. According to industry park workers, the LED industry park mainly introduces epitaxial wafers, chips, LED backlights, and other upstream LED companies. The original intention of the main park and the industrial park is to concentrate on the LED industry leading enterprises and establish a core industrial cluster of LED industry that integrates the research and production of the company's headquarters and middle and upper reaches of the industry, production services, and life support. As the name implies, companies that can enter the park are all companies that have the ambition to develop and research LED upstream technology products. Therefore, the initial investment in the park are all promising companies that are interested in developing in the LED upstream stage. However, what the reporter sees in the park is far from imagination. Many companies that took the land to build a core technology R&D production base two or three years ago are still a wasteland now.
Workers nearby: On this construction site, the construction site has not been seen. We have not seen it since the Spring Festival this year. Which factory is the factory of the house. The factory is still under construction. You said that this wasteland is not under construction. The construction of the house has been started.
Reporter: The wasteland has not been moved.
Worker: Um, right.
Reporter: Did you know that he used to build something in this wasteland?
Worker: I don't know this, this one, a year and a half.
Industry sources told reporters that this wasteland that has not been constructed in the past two years belongs to a listed company. When the factory was acquired in the industrial park, it was promised to use the funds it raised to develop chips and other core technologies. However, for various reasons, The listed company delayed or even temporarily suspended plans to invest in R&D. Industry sources told reporters that there are many LED listed companies that do not spend money.
Zhang Xiaofei, director of the Gaogong LED Industry Research Institute: According to our statistics, last year's listed companies spent about 100 to 20 percent of the different companies. At the same time, most of the money they have can be used to make acquisitions, so they are also likely to carry out the development of new industries and are now basically in control.
Not only is the funds raised available on the books, some listed companies use the funds raised to invest in other industries. Shareholder Mr. Huang told reporters that he saw from the announcement of a listed company that the company would use over-raised funds to invest more than RMB 90 million to establish Culture Co., Ltd., and that it would profit by selling advertising time on LED outdoor advertising screens.
Mr. Huang: Concerned about some companies recently, it puts the funds raised into some other industries, such as opening some cultural companies and so on. On this aspect, I wonder if it will not be very good.
There are also mixed opinions about the active listing of listed companies but they are not actively spending money. Some people believe that many listed companies are listed for the preparation of projects only for the purpose of making money.
Lou Weiqiang, Chairman of Guangzhou Shuaiyang Lighting Technology Co., Ltd.: Well, these listed companies in China are often imperfectly motivated to go public in order to go public. They are short of money, and develop products with a project or development technology. This is an operation to go public and once it is listed, it loses its direction and it does not know how to do it. There is neither such preparation nor resources in this area, so it is said to have a Where money has no place to invest, he does not invest money in places where he invests money, and he does not invest money where he should not invest money, so this is a very blind move.
Pan Wenbo told reporters that due to the current uncertain situation in the LED industry, on the other hand, if companies continue to invest in construction projects, the overall performance of the company will be affected, so many companies are temporarily slowing down part of the project construction.
Pan Wenbo, Dean of Guangdong Guangya Lighting Research Institute: Because the money we raise on the capital market may not have come slowly. Maybe it has been raised a lot now. You have to spend it all at once. Like a person's growth, yes, although I may have a little malnutrition now, you helped me to make it up. Maybe I'm not only bad on the basis now, but the money I put in may be lost. Because it must be based on the company's growth, market size, or the current status of the market, it does not mean how much money you will spend on how much money you raise.
Zhang Xiaofei, director of the LED Industry Research Institute of Gaogong: Actually, in the early stage companies, listed companies invested more before listing, so most of the over-raised funds after the listing have a phenomenon of bank repayment, so the super-raised funds are relatively speaking. This measure of supervision is relatively loose, then some enterprises, in this industry, this gross profit rate fell a lot, such as video companies, the display industry, the packaging industry in the middle reaches, the next year's return, The development of the industry is still out of this wait-and-see attitude, so it is more cautious about the use of this over-raised funds.
According to data provided by the Guangya Lighting Research Institute of Guangdong Province, Shenzhen has a total of 16 LED-based and supporting-based companies from 2010 to 2012, of which over-raised funds totaled about 4 billion yuan, and over-raised funds reached 72%.
Pan Wenbo: Well, if you look at hot words, it may be 80 degrees. It may be 35 degrees and 36 degrees when it comes to normal. We think that now is a process of cooling down. This cooling is a process of elimination, that is, one, especially in In terms of product application, we will eliminate a batch or even a large number of this kind of market that is thirty or forty or even higher. The product companies will be eliminated from the middle of the market.
Led as an energy-saving product, due to large development space, policy support, in a short time there have been many problems such as capital accumulation, expansion of production capacity, good and bad, and so on. After some companies went public, they used the funds they raised to carry out other production operations. They were suspected of misappropriating money. Where does the LED industry go in the future? Where is the LED industry tomorrow?
Lu Weiqiang, chairman of Guangzhou Shuaiyang Lighting Technology Co., Ltd., told reporters that the LED industry is not not making money. In the LED industry chain, the expensive upstream epitaxial wafers and chip manufacturing are the highest profits, and the domestic led industry is in recession. The bottom line is that the industry lacks the core. In the same industry, foreign companies mainly have more patents in the upstream and midstream chip and packaging fields. In the domestic LED industry chain, a large number of LED companies are midstream and downstream companies lacking core technologies.
Lu Weiqiang: At present, the industry's domestic market is telling the truth about the many businesses we practice. We can say that there are thousands of tens of thousands of people, and then we can master very few core technologies, which may be less than 5% or even 1%.
According to statistics, more than half of the technologies and patents in the global LED industry are occupied by a few large companies in the United States, Japan, and Germany. Most of these patents are core technology patents, and domestic companies, especially SMEs, find it difficult to find a breakthrough. In terms of profit, the profits of the midstream and downstream enterprises only account for about 25% of the entire industrial chain. Upstream chip and package manufacturing companies account for about 75% of the profits in the industry chain.
Lu Weiqiang: If domestically produced LED chips account for most of the market in low-grade lighting, which is 80% to 90%, then in the middle and high-grade areas, it is very poor, probably 5% to 10%, which is only in the mid-range area, in the high-end There is no domestic LED chip in the field.
Shenzhen Saiju Lighting is a LED lighting company mainly for export sales. More than 70% of their products are sold abroad. Xie Jinhua, general manager of Saiju Lighting, told reporters that in the process of negotiating with customers, he was most embarrassed. The customer will ask the manufacturer of the chip and generally specify the imported brand.
Xie Jinhua, general manager of Shenzhen Saige Lighting: If we use domestic chips, we can save two-thirds of the cost, but we generally say that when we talk to customers about long-term cooperation, we say Let customers choose domestic or foreign, then we reflect through our customers that the use of foreign chips, in this case, may be more secure and more sustainable.
Sun Jianning who settled in Nanjing Shangyu Lighting Co., Ltd. told reporters that as early as a few years ago they saw the difference in profits between the upstream and downstream industries. Shangyu Lighting decided to concentrate its technical strength and develop competitive products. After six months of hard work, they The new product is successfully listed.
Sun Jianning, CEO of China Shangyu Lighting Co., Ltd.: This is a LED bulb that we developed instead of 40 watts, which is 10% more efficient than the market. The packaging is special for our design. We are now pushing 100 RMB three. Only, three aspects are beneficial to reduce costs, because we choose the correct design method through innovation in every aspect.
The core technology of Shangyu Lighting has enabled the product to achieve a better light effect, but only half the price of foreign products. Shortly after the product was launched, foreign investment agencies found the door.
Sun Jianning: This is the main reason we have attracted to financing. Last year this time, we raised 50 million. Later in the second round of financing, the second round of financing was 30 million US dollars. Technology is the basis. No core technology will not vote for you.
Xia Weihua, Director of Operations of France Bright Vision Technology International Co., Ltd.: This year, more than five months have passed and sales have been completed for the past year. I believe that in the next six months, efforts should be doubled and there should be no problem.
Tsinghua Tongfang Vice President Wang Lianghai believes that because the core technology is still in the developed countries, talent and technology are still the shortest boards in the development of the domestic upstream LED industry, and downstream LED products are also hindered by high prices and vicious competition in the market. Product application promotion. Tongfang is trying an internationally popular marketing model to bring LED terminal products to market.
Wang Lianghai: Because your scale is not enough, the cost will certainly be expensive, but from the perspective of its energy-saving effect, now we started from last year, in fact, we have used some of these products from the previous year, using this model of EMC. , so much used in this kind of commercial lighting and office lighting.
On the basis of digesting and absorbing advanced international technologies, we will continue to develop, research, and introduce ourselves to the world's leading technologies. Currently, a complete industrial chain and large-scale production of LED epitaxial wafers, chip manufacturing and terminal products, and commercial and urban landscape lighting have been formed.
Wang Lianghai: That is to say, we hope that in the front of the LED chip, we can really connect with the international level from the technical level. I think we hope that the LED chip products introduced can reach this level of international excellence. Wang Lianghai believes that although the entire LED industry is currently facing difficulties such as overcapacity and severe homogenization, there are not many LED lighting companies with strong real technology and strong brand competitiveness. The market potential is still huge.
Wang Lianghai: It should be said that China is a major producer of lighting, but China is not a big country of the brand. China's large number of lighting products are all made for others. Right? So I think in the direction of traditional lighting to LED lighting, it should be said that companies still have the opportunity to truly move from a big producer to a brand.
Pan Wenbo: Those who have advantages in resources, have advantages in the development of human resources and technology, have an advantage in technology research and development, and have a guarantee in the production of production, and later have also done a marketing network construction. I think they must have a certain amount of their own market share in the middle of the market in the future.
On the one hand, many LED companies have closed down. On the one hand, capital is still buoying the industry. The current situation of contradictions shows that the industry is experiencing a chaotic period of change. In this contradiction, we can see the desire of Chinese companies and capital for new technologies and new energy sources. However, it is not difficult to see from these large-scale and disproportionate expansions that we still have not escaped the low-level and redundant construction of the manufacturing industry. When those companies that only focus on the immediate interests and only look at the small profits, the entire LED market can only stay in the error of the price war and can not extricate themselves. Therefore, it is not difficult to understand why a scrambled LED industry did not even develop a high-end core. This industry tragedy has appeared in the color TV industry more than a decade ago. Because it does not have its own core technology, the color TV industry has always been a component assembler, always at the low end of the industry chain. Hope that the LED industry will not repeat this tragedy.
Wu Wenfeng, President of Guangdong Yayi Lighting Technology Co., Ltd.: This time, Guangzhou has just finished a Guangya lighting exhibition. The LED industry companies in China have basically participated in this exhibition. At the end of the exhibition, the organizers invited the former The 100 Chinese LED companies participated in a thank-you dinner. The host made a joke and said that the LED owners were so thin that everyone laughed. This really reflects, LED industry, the voice of this industry, everyone in this industry, is now eating well, can not sleep well, can not make money, the investment is still so big, so the bosses are thin. Although this is a joke, it does reflect the current state of the industry.
Wu Wenfeng introduced that since last year, domestic small and medium-sized LED companies have frequently closed down - in Shenzhen, more than 80 failed LED lighting companies, Guangdong Foshan, nearly 10% of LED lighting companies closed down in 2011, Dongguan, Zhongshan LED lighting companies Also fell into the cold wave of closure.
Dong Yunting, president of the China Electronics Enterprise Association, said: More than 100 companies in our midstream have closed down. This downstream company has more than 300 companies closed down, so why? From the perspective of the industry chain and the price chain, this profit is mainly concentrated in the upstream, with upstream accounted for about 70%, the middle reaches of the package is also 10% to 20%, and the application is also 10% to 20%.
According to the statistics of the Guangdong Guangya Lighting Research Institute, the 2011 annual results report released by 12 companies listed from last year to the first quarter of this year showed that only two companies maintained a slight increase in growth rate, while the other 10 companies had growth rates Different degrees of decline. However, in sharp contrast to the industry downturn, the IPO enthusiasm of domestic LED companies is still rising this year. According to the statistics of Guangdong Guangya Lighting Research Institute, in the first quarter of this year alone, there are 8 LED companies that have already been listed and have been waiting to be launched. This is more than the total number of LED companies listed in the company last year; among them, listings and conferences will be held in March. There are 6 of them. At the end of last year, there were four led companies reporting the "grand" of the meeting.
Pan Wenbo, dean of Guangdong Guangya Lighting Research Institute, is also based on LED industry in the optoelectronics industry in the past two years. The proportion of these listed companies is faster than that of any other industry company.
Wu Wenfeng told reporters that people who invest in LED can be described in various forms. They have to do logistics, do tires, and even manage the canteens to hold funds to make LED. Many of the original companies that do hardware purchase LED lamps from the upstream, after a simple assembly, transformed into a LED company.
Wu Wenfeng: I think we can use eight words to describe it as "a mess and a mess."
Zhan Runzi, general manager of Tongfang Semiconductor Co., Ltd.: What can be said now? Call the crowds, or chaos, there is no order, large-scale investment.
Obviously, the LED industry is falling into a dilemma. On the one hand, investors’ enthusiasm is high, and companies are rushing to go public. On the one hand, the profits of the industry are falling. From last year to now, there are more than 500 led companies have closed down. In the same industry, why did you stage two things at the same time? What is the reason for this? Look at the survey.
Industry insiders told reporters that the first batch of LED companies that failed to close were mostly novices who entered the industry in these two years. From 2007 to 2011, in just four years, MOCVD equipment for LED production in China grew from 50 to 720, and this year it has increased to nearly 1,000. According to the statistics of the China National Engineering Research Institute for Advanced Industrial Science and Technology, the total investment in downstream LED lighting applications in the country was 23 billion in 2010, and the investment in the application field in 2011 was as high as 40 billion.
Zhan Runzi: At the application end, especially in the lighting segment, terminal lighting market, home lighting, and positive lighting, there is not much pulling on the above. For this industry, there is still a big bottleneck in the development.
Zhan Runzi told us that the rapid increase in LED chip companies has caused serious shortage of talent and overcapacity in the industry. Starting last year, LED chip prices have fallen sharply.
Zhan Runzi: For example, at that time (2010) said that I, according to the original film, according to this to sell, sell 100 US dollars, and now my market price is only 30 US dollars, but my previous investment, my equipment, my staff It is constant, even higher than the original. This is because when the industry is out of order, this kind of talent can be said to be a vicious one, causing the cost of personnel to increase.
Duan Xianchun said that although many LED companies wear high-tech outerwear, in many small factories, several electric irons and a bunch of LED lighting parts can produce LED lamps. It is this workshop-style LED company that produces a very cheap but poor quality product that is flooding the market.
Mei Xian lighting company commercial lighting project minister Duan Xianchun: The same product, some 5 dollars, 10 dollars, and some may sell 50,100 yuan, there is such a gap. Well, this kind of low-priced product, its quality will certainly not be very good. After it has flown to the market, ordinary people still have expectations for LED. However, after he bought the product and used it for a period of time, he had problems. He would I feel that LED products are not good, not as light bulbs, fluorescent lamps.
Low-quality, low-quality LED products disrupted market prices, and consumers' trust in LED products was greatly reduced, leading to a vicious cycle. The slump in the export market last year led the LED industry to suffer another heavy blow. LED products from overseas markets, such as Christmas tree lighting appliances, are almost all exported from China. Under the influence of the European economic crisis and the inability of the US economic recovery, the company’s Orders are falling sharply, with orders in Europe and the United States falling by 3 to 50%, which is quite common in the industry.
Dong Yunting: We are too chaotic, too scattered, and companies are too weak. Therefore, in fact, these two years are actually equivalent to a batch of bankruptcy, and a batch of new ones have actually been shuffled. Through this reshuffling, they are actually integrating mergers and acquisitions. I estimate that this industry will gradually take the normative path.
The unevenness of Chinese LED companies has seriously affected the reputation of the entire industry. This has led to a sharp decline in exports by 50%. The industry is in a downturn. In the words of Dong Yunting and industry insiders, the LED industry is currently facing a reshuffle. The first to fall is the first two. Years blindly smashed gold into this industry. The downturn of some companies has brought a series of chain reactions to the entire industry. In the previous program, we saw that the LED industry is now in mourning. Within a year, more than 500 companies closed down. At the same time, however, the industry has always been able to get the lion's share of capital. In the past year, 8 companies have been listed and the over-raised funds have exceeded 4 billion yuan. Is the company that raised the fund very good?
Mr. Huang is a senior investor. Over the past few years, he has been focusing on LED listed companies. He feels that now the country has more and more support for LED companies, there are new energy concepts, the development prospects are very good, so he took himself All the stocks bought the shares of the LED company, originally hoped to allow himself to make at least a small fortune, but this time he had not wished to lose this not only did not make, but lost a lot.
Reporter: How are the returns?
Investor Huang: Recently it was a loss, about 20%.
Less than 20% of losses occurred in less than a month. This not only caused Mr. Huang to scream and misunderstood, but also began to find the reasons for his own investment mistakes. He began to pay attention to the reasons for the loss of these listed LED companies. Mr. Huang noticed that the latest data from Guangdong Guangya Lighting Research Institute: From 2010 to 2012, the gross profit rate of some listed LED companies decreased by up to 17.9% year-on-year. The net profit rate dropped by a maximum of 13.5% year-on-year. The overall sales situation of the industry is unsatisfactory, but what is most confusing to Mr. Huang is that most of the listed LED companies have not used the funds in accordance with their commitments in the original prospectus or postponed the use of recruitment funds, resulting in LED Many of the listed company’s recruitment funds, especially over-raised funds, are on the books and do not maximize the effect of recruiting funds.
Mr. Huang: Concerned about the announcements of some listed companies. Some of them may have over-funded themselves. They have some plans to implement those projects. They are worried.
According to industry guidelines, the reporter went to the LED Industrial Park in a development zone in Huizhou City, Guangdong Province. According to industry park workers, the LED industry park mainly introduces epitaxial wafers, chips, LED backlights, and other upstream LED companies. The original intention of the main park and the industrial park is to concentrate on the LED industry leading enterprises and establish a core industrial cluster of LED industry that integrates the research and production of the company's headquarters and middle and upper reaches of the industry, production services, and life support. As the name implies, companies that can enter the park are all companies that have the ambition to develop and research LED upstream technology products. Therefore, the initial investment in the park are all promising companies that are interested in developing in the LED upstream stage. However, what the reporter sees in the park is far from imagination. Many companies that took the land to build a core technology R&D production base two or three years ago are still a wasteland now.
Workers nearby: On this construction site, the construction site has not been seen. We have not seen it since the Spring Festival this year. Which factory is the factory of the house. The factory is still under construction. You said that this wasteland is not under construction. The construction of the house has been started.
Reporter: The wasteland has not been moved.
Worker: Um, right.
Reporter: Did you know that he used to build something in this wasteland?
Worker: I don't know this, this one, a year and a half.
Industry sources told reporters that this wasteland that has not been constructed in the past two years belongs to a listed company. When the factory was acquired in the industrial park, it was promised to use the funds it raised to develop chips and other core technologies. However, for various reasons, The listed company delayed or even temporarily suspended plans to invest in R&D. Industry sources told reporters that there are many LED listed companies that do not spend money.
Zhang Xiaofei, director of the Gaogong LED Industry Research Institute: According to our statistics, last year's listed companies spent about 100 to 20 percent of the different companies. At the same time, most of the money they have can be used to make acquisitions, so they are also likely to carry out the development of new industries and are now basically in control.
Not only is the funds raised available on the books, some listed companies use the funds raised to invest in other industries. Shareholder Mr. Huang told reporters that he saw from the announcement of a listed company that the company would use over-raised funds to invest more than RMB 90 million to establish Culture Co., Ltd., and that it would profit by selling advertising time on LED outdoor advertising screens.
Mr. Huang: Concerned about some companies recently, it puts the funds raised into some other industries, such as opening some cultural companies and so on. On this aspect, I wonder if it will not be very good.
There are also mixed opinions about the active listing of listed companies but they are not actively spending money. Some people believe that many listed companies are listed for the preparation of projects only for the purpose of making money.
Lou Weiqiang, Chairman of Guangzhou Shuaiyang Lighting Technology Co., Ltd.: Well, these listed companies in China are often imperfectly motivated to go public in order to go public. They are short of money, and develop products with a project or development technology. This is an operation to go public and once it is listed, it loses its direction and it does not know how to do it. There is neither such preparation nor resources in this area, so it is said to have a Where money has no place to invest, he does not invest money in places where he invests money, and he does not invest money where he should not invest money, so this is a very blind move.
Pan Wenbo told reporters that due to the current uncertain situation in the LED industry, on the other hand, if companies continue to invest in construction projects, the overall performance of the company will be affected, so many companies are temporarily slowing down part of the project construction.
Pan Wenbo, Dean of Guangdong Guangya Lighting Research Institute: Because the money we raise on the capital market may not have come slowly. Maybe it has been raised a lot now. You have to spend it all at once. Like a person's growth, yes, although I may have a little malnutrition now, you helped me to make it up. Maybe I'm not only bad on the basis now, but the money I put in may be lost. Because it must be based on the company's growth, market size, or the current status of the market, it does not mean how much money you will spend on how much money you raise.
Zhang Xiaofei, director of the LED Industry Research Institute of Gaogong: Actually, in the early stage companies, listed companies invested more before listing, so most of the over-raised funds after the listing have a phenomenon of bank repayment, so the super-raised funds are relatively speaking. This measure of supervision is relatively loose, then some enterprises, in this industry, this gross profit rate fell a lot, such as video companies, the display industry, the packaging industry in the middle reaches, the next year's return, The development of the industry is still out of this wait-and-see attitude, so it is more cautious about the use of this over-raised funds.
According to data provided by the Guangya Lighting Research Institute of Guangdong Province, Shenzhen has a total of 16 LED-based and supporting-based companies from 2010 to 2012, of which over-raised funds totaled about 4 billion yuan, and over-raised funds reached 72%.
Pan Wenbo: Well, if you look at hot words, it may be 80 degrees. It may be 35 degrees and 36 degrees when it comes to normal. We think that now is a process of cooling down. This cooling is a process of elimination, that is, one, especially in In terms of product application, we will eliminate a batch or even a large number of this kind of market that is thirty or forty or even higher. The product companies will be eliminated from the middle of the market.
Led as an energy-saving product, due to large development space, policy support, in a short time there have been many problems such as capital accumulation, expansion of production capacity, good and bad, and so on. After some companies went public, they used the funds they raised to carry out other production operations. They were suspected of misappropriating money. Where does the LED industry go in the future? Where is the LED industry tomorrow?
Lu Weiqiang, chairman of Guangzhou Shuaiyang Lighting Technology Co., Ltd., told reporters that the LED industry is not not making money. In the LED industry chain, the expensive upstream epitaxial wafers and chip manufacturing are the highest profits, and the domestic led industry is in recession. The bottom line is that the industry lacks the core. In the same industry, foreign companies mainly have more patents in the upstream and midstream chip and packaging fields. In the domestic LED industry chain, a large number of LED companies are midstream and downstream companies lacking core technologies.
Lu Weiqiang: At present, the industry's domestic market is telling the truth about the many businesses we practice. We can say that there are thousands of tens of thousands of people, and then we can master very few core technologies, which may be less than 5% or even 1%.
According to statistics, more than half of the technologies and patents in the global LED industry are occupied by a few large companies in the United States, Japan, and Germany. Most of these patents are core technology patents, and domestic companies, especially SMEs, find it difficult to find a breakthrough. In terms of profit, the profits of the midstream and downstream enterprises only account for about 25% of the entire industrial chain. Upstream chip and package manufacturing companies account for about 75% of the profits in the industry chain.
Lu Weiqiang: If domestically produced LED chips account for most of the market in low-grade lighting, which is 80% to 90%, then in the middle and high-grade areas, it is very poor, probably 5% to 10%, which is only in the mid-range area, in the high-end There is no domestic LED chip in the field.
Shenzhen Saiju Lighting is a LED lighting company mainly for export sales. More than 70% of their products are sold abroad. Xie Jinhua, general manager of Saiju Lighting, told reporters that in the process of negotiating with customers, he was most embarrassed. The customer will ask the manufacturer of the chip and generally specify the imported brand.
Xie Jinhua, general manager of Shenzhen Saige Lighting: If we use domestic chips, we can save two-thirds of the cost, but we generally say that when we talk to customers about long-term cooperation, we say Let customers choose domestic or foreign, then we reflect through our customers that the use of foreign chips, in this case, may be more secure and more sustainable.
Sun Jianning who settled in Nanjing Shangyu Lighting Co., Ltd. told reporters that as early as a few years ago they saw the difference in profits between the upstream and downstream industries. Shangyu Lighting decided to concentrate its technical strength and develop competitive products. After six months of hard work, they The new product is successfully listed.
Sun Jianning, CEO of China Shangyu Lighting Co., Ltd.: This is a LED bulb that we developed instead of 40 watts, which is 10% more efficient than the market. The packaging is special for our design. We are now pushing 100 RMB three. Only, three aspects are beneficial to reduce costs, because we choose the correct design method through innovation in every aspect.
The core technology of Shangyu Lighting has enabled the product to achieve a better light effect, but only half the price of foreign products. Shortly after the product was launched, foreign investment agencies found the door.
Sun Jianning: This is the main reason we have attracted to financing. Last year this time, we raised 50 million. Later in the second round of financing, the second round of financing was 30 million US dollars. Technology is the basis. No core technology will not vote for you.
Xia Weihua, Director of Operations of France Bright Vision Technology International Co., Ltd.: This year, more than five months have passed and sales have been completed for the past year. I believe that in the next six months, efforts should be doubled and there should be no problem.
Tsinghua Tongfang Vice President Wang Lianghai believes that because the core technology is still in the developed countries, talent and technology are still the shortest boards in the development of the domestic upstream LED industry, and downstream LED products are also hindered by high prices and vicious competition in the market. Product application promotion. Tongfang is trying an internationally popular marketing model to bring LED terminal products to market.
Wang Lianghai: Because your scale is not enough, the cost will certainly be expensive, but from the perspective of its energy-saving effect, now we started from last year, in fact, we have used some of these products from the previous year, using this model of EMC. , so much used in this kind of commercial lighting and office lighting.
On the basis of digesting and absorbing advanced international technologies, we will continue to develop, research, and introduce ourselves to the world's leading technologies. Currently, a complete industrial chain and large-scale production of LED epitaxial wafers, chip manufacturing and terminal products, and commercial and urban landscape lighting have been formed.
Wang Lianghai: That is to say, we hope that in the front of the LED chip, we can really connect with the international level from the technical level. I think we hope that the LED chip products introduced can reach this level of international excellence. Wang Lianghai believes that although the entire LED industry is currently facing difficulties such as overcapacity and severe homogenization, there are not many LED lighting companies with strong real technology and strong brand competitiveness. The market potential is still huge.
Wang Lianghai: It should be said that China is a major producer of lighting, but China is not a big country of the brand. China's large number of lighting products are all made for others. Right? So I think in the direction of traditional lighting to LED lighting, it should be said that companies still have the opportunity to truly move from a big producer to a brand.
Pan Wenbo: Those who have advantages in resources, have advantages in the development of human resources and technology, have an advantage in technology research and development, and have a guarantee in the production of production, and later have also done a marketing network construction. I think they must have a certain amount of their own market share in the middle of the market in the future.
On the one hand, many LED companies have closed down. On the one hand, capital is still buoying the industry. The current situation of contradictions shows that the industry is experiencing a chaotic period of change. In this contradiction, we can see the desire of Chinese companies and capital for new technologies and new energy sources. However, it is not difficult to see from these large-scale and disproportionate expansions that we still have not escaped the low-level and redundant construction of the manufacturing industry. When those companies that only focus on the immediate interests and only look at the small profits, the entire LED market can only stay in the error of the price war and can not extricate themselves. Therefore, it is not difficult to understand why a scrambled LED industry did not even develop a high-end core. This industry tragedy has appeared in the color TV industry more than a decade ago. Because it does not have its own core technology, the color TV industry has always been a component assembler, always at the low end of the industry chain. Hope that the LED industry will not repeat this tragedy.
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