LED lighting industry collapses, SMEs are under pressure

Last year, the collapse of many enterprises in various building materials industries seems to indicate that the LED industry will run away and the trend of bankruptcy will accelerate its spread, at almost the same time, the news that Shenzhen Yiguang and the 100 million yuan Zhongshan Xiongji, which was robbed at a low price, closed down at the same time, and LED the topic of corporate bankruptcy to the cusp. Indeed, there are too many enterprises in the LED industry that are similar to children in the shackles. It is cruel to close down and it is worthy of sympathy. But competition is cruel, and survival of the fittest is a natural law under market operation. Enterprises that become victims are worthy of respect and admiration. Without their sacrifice, how can we find hidden dangers in the development of the industry and these driving forces that ruin the lives of enterprises. Where is the way out for these muddy LED enterprises? Who will be the next in this collapse? In fact, this kind of bankruptcy tide is still being staged repeatedly in the country. The reasons for the bankruptcy are similar. The collapse of the previous period, bolent, and hope, has made the entire lighting industry panic. From a macro perspective, the international and domestic economic downturn is still continuing, and it is very likely to continue to explore. From the microscopic analysis, it reflects that the difficult situation of small and medium-sized enterprises in China has not improved. Under the influence of the appreciation of RMB, most lighting enterprises in the eastern coastal areas are export-oriented enterprises with high dependence on foreign countries. Exports are denominated in US dollars. In the past one or two years, the US dollar has depreciated and the renminbi has appreciated. The original added value of most small and medium-sized enterprises is low and the profits are very thin. If the appreciation of the renminbi is deducted, the export of physical quantity is actually negative. With the increase of labor cost, with the rapid growth of China's economy for several consecutive years, the income and treatment of employees in all walks of life have increased to a certain extent, and the wages and treatment of workers are correspondingly required to increase. It is transmitted to the enterprise level, and then it is manifested as a substantial increase in cost pressure. Therefore, it broke the original low-cost strategy of SMEs. The rise in the price of raw materials, starting from 2008, coal, electricity, oil and other raw materials and the price of the transportation industry soared, so that the operating costs of small and medium-sized enterprises, small and medium-sized enterprises have no profit, and some even debt management, therefore, they had to switch to production or stop production. Many lighting companies have begun to consider moving their production bases to provinces, autonomous regions and municipalities with lower labor costs in the West. Lack of technological innovation, according to the reporter's understanding, the entire lighting industry has a serious drought, and small and medium-sized lighting enterprises are more difficult to attract talents needed for innovation than large enterprises, as a result, the technological development ability of small and medium-sized lighting enterprises is weak and the innovation management mode is outdated, so the success rate of technological innovation is low. Many small and medium-sized lighting enterprises are attached to large enterprises and provide supporting services for large lighting enterprises. Therefore, they are more passive in technological development and product development, coupled with the lack of innovative talents and funds, the economic strength and technical strength of small and medium-sized enterprises are weak, so it is difficult to attract universities and research institutes to cooperate with them. Enterprises have difficulties in financing. With the promotion of energy conservation and emission reduction policies, the state pays special attention to and strongly supports lighting enterprises in many aspects such as capital, technology and personnel, however, it is mainly aimed at large-scale lighting enterprises, and the development of small and medium-sized lighting enterprises is not paid enough attention. Therefore, most financial institutions, including many small and medium-sized financial institutions, have focused on large-scale lighting enterprise projects. Due to the defects in China's current financial system, it is difficult for small and medium-sized enterprises to obtain financing in the capital market. According to a bank insider, banks are reluctant to lend to SMEs due to high loan transactions and high monitoring costs. At the same time, due to the unclear property right system of small and medium-sized enterprises, banks require guarantees for loans to small and medium-sized enterprises out of their own risks. However, China's lack of credit guarantees for small and medium-sized enterprises has led to many difficulties in loans to small and medium-sized enterprises. How to solve the financing problem? The reporter consulted an expert in the financial industry and learned that in the specific operation of financing, small and medium-sized enterprises should maintain a continuous relationship with banks. Business owners should not think of banks only when they want to finance, in fact, our bank very much hopes to have a very close and continuous relationship with small and medium-sized enterprises, so that banks can understand the needs of enterprises. Only in this way can banks provide tailor-made financial solutions for enterprises. An enterprise does not represent an industry, and the lighting industry is still a sunrise industry. From the reasons for the bankruptcy of these lighting enterprises, we can see that some enterprises themselves are of high quality. Lighting enterprises have a large capital investment, and a project needs hundreds of thousands and millions, even tens of millions of investment, and the return of funds will take a long time, small and medium-sized lighting enterprises because there is no strong financial support, the development of enterprises is difficult. Therefore, if the operator's decision-making mistakes or the break of the capital chain lead to bankruptcy, the government cannot let it go, and should help to protect the foundation of future development.