LED industry urgently needs industry structure adjustment1

Relying on the strong support of local governments, the entire LED industry in China has seen an investment boom in recent years. However, with the support of the promising industrial development prospect and relevant government policies, the vast majority of LED enterprises have to face the dilemma of loss, even triggering the recent widespread collapse. Because the entire LED industry is currently in a crisis of structural surplus, the LED investment plans and production capacity under construction that have been introduced in various places in the past two years have far exceeded the actual market demand. Industry insiders said that due to the lack of upstream core technologies, China's LED enterprises are currently clustered in low-end areas such as packaging and application, and the resulting serious problem of product homogenization, coupled with the decline in purchasing power in European and American markets, in addition to some products, the overall order has a downward trend. Government orders dominate the local care of local enterprises, and the domestic LED Lighting Market 95 is a government order. Industry insiders said. From the perspective of public information, government orders are basically the first-to-first-month model. San'an Optoelectronics is headquartered in Xiamen, and there are projects in Huainan city. The orders for LED street lamps in these two cities fall into San'an Optoelectronics; Dehao Runda is headquartered in Zhuhai. At the end of November, it also announced the acquisition of Zhuhai's 30 thousand LED street lamps. At the same time, Wuhu gathered two giants, Sanan Optoelectronics and Dehao Runda, so the order for the LED street lamp project in Wuhu was divided equally. In the first three quarters, only 7 of the 20 A- share LED listed companies saw their performance increase, while Sanan Optoelectronics, the leading company, remained profitable, but the net profit growth rate of 14 decreased compared with the same period last year. At least half of the companies will be dumped in the reshuffle next year, which is the judgment circulated among the LED industry during this period of time. It is understood that in 2013, the price of LED products has been falling continuously, and some LED lighting products are close to the price of compact energy-saving lamps, which initially has the substitution advantage, which objectively drives the market demand. Relevant business people said frankly that from the current situation, their performance is indeed better than that of 2012, but they still expect the government to give more subsidies to this emerging industry. There is also a view that the LED industry, which is currently less than 200 billion yuan, has more than 5000 enterprises with low concentration. In the future, we should prepare for the upcoming merger and reorganization of the industry.