Winter, excess, and shuffling have become the key words of the current LED industry. The LED industry did not have a complete recovery in 2012 as expected, and is still struggling to find out. "Triangular debt" is plaguing many LED companies. Will the industry accelerate the “shuffle†in 2013, and “in the integration�
"triangular debt" spread "In the past six months, the phenomenon of 'triangular debt' has been very serious." Liu Xiao, general manager of Intermec Optoelectronics (Shenzhen) Co., Ltd. sighed. One of the major phosphor suppliers in the domestic LED industry is also suffering from “triangular debtâ€.
At the "Second G20-LED Summit" held on December 14, 2012, Liu Xiaoda spit pains: "The recent situation is worrying. It may be that there are many suppliers, and I have not paid for it before. If you take the goods, don't give money, then go on and find another one."
"And, the account period is long. The account period is generally 60 days, the actual 180 days, or even 200 days." Liu Xiao said, "The more serious problem is that the RMB is gone, and all the money is given to me."
This is like drumming, the customer owes money to the application company, and the application company owes money to the packaging factory. The packaging factory can only owe money to the upstream material supplier. The "triangular debt" was born.
According to the analysis report of the High-tech LED Industry Research Institute, as of the end of the third quarter of 2012, the balance of accounts receivable of 21 listed companies with LED as the main business was as high as 5.519 billion yuan, and the balance of accounts payable reached 3.438 billion yuan. Among them, the total accounts receivable accounted for 89.13% of the total revenue of the above-mentioned companies in the first three quarters.
Behind the surge in accounts receivable is overcapacity and increased competition in all segments of the LED industry.
In order to avoid being dragged down by “triangular debtsâ€, the 20 LED companies that launched the G20-LED summit have planned to establish a communication interactive platform. Enterprises will ventilate each other and blacklist the money-sending enterprises to control risks.
"shuffle" acceleration According to Zhang Xiaofei, president of the High-tech LED Industry Research Institute, the total output value of the LED industry increased from 154 billion yuan in 2011 to 205.9 billion yuan in 2012. The price of packaging fell by 40%, and the price of chips dropped by 30%.
Zhang Xiaofei said that in 2012, the number of MOCVD machines for the production of epitaxial wafers from LEDs increased from 803 to 917 units. “There were 114 units added in one year, which is the fastest in major equipment investment.†It is understood that the domestic MOCVD machine Capacity utilization is only about 65%. Wang Lianghai, vice president of Tongfang Co., Ltd., believes that upstream chip companies have shifted from technology competition to cost competition, and LED chips are entering a period of meager profit or even no profit.
In the field of packaging, there are more than 1,700 companies in China, accounting for 80% of the world. In 2012, Guoxing Optoelectronics, Hongli Optoelectronics, Wanrun Technology, Lehman Optoelectronics and other packaged listed companies experienced a decline in operating income or net profit due to falling package prices. With the help of the capital market, LED packaging capacity will be further released, and market competition pressure will intensify. A small number of small and medium-sized packaging plants with weak technology and market capabilities will be eliminated.
Another background for accelerating shuffling is that China's LED industry is still a government-led market, the civilian market is yet to be activated, the commercial market is starting to take off, and a large amount of demand is supported by government engineering orders and policy support. Large enterprises will get more government orders because of their technical and resource advantages. It is relatively difficult for SMEs lacking technology and brand to get government orders. Under this circumstance, the LED industry will form a pattern of “strong and strong†and polarized.
Reorganization wave Difficult times have brought opportunities for mergers and acquisitions in the LED industry. The restructuring between the upstream and upstream enterprises, as well as the upstream enterprises to accelerate the downstream penetration, has become a hot spot in this round of restructuring.
In 2012, Sanan Optoelectronics, the largest LED chip company in mainland China, participated in Taiwan's Yuyuan Optoelectronics, which kicked off the reorganization of chip companies. Zhang Xiaofei predicts that there will be less than 30 LED epitaxial chip companies in China by 2013.
At the forum of the "2nd G20-LED Summit", Gong Weibin, the chairman of Ruifeng Optoelectronics, and Jiang Guozhong, the head of Lianchuang Optoelectronics, said that they are interested in the packaging and application enterprises with an annual output value of 100 million to 200 million yuan. .
"Upstream chip companies need to seek profit support from the expansion of the industry chain." Wang Lianghai predicted that the chip plus application model will become a trend. He revealed that Tongfang may expand from chip to package and application.
“There are too many downstream manufacturers, just like the VCD more than 10 years ago, market integration is inevitable.†Shi Lancan, director and executive deputy general manager of Huizhou Yuanhui Optoelectronics Co., Ltd., believes that “the entire Chinese LED industry is waiting for the market to take off.â€
Of course, well-known downstream companies will also take the opportunity to get involved in the LED industry, or make up for their shortcomings. Color TV enterprise Konka has been involved in Ruifeng Optoelectronics. LED vertical integration companies represented by Zhenmingli Lighting are lacking in overseas channels and brand building, and are also looking for relevant opportunities.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.) 
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