[High-tech LED reporter Wang Cairong] On the morning of August 15, an insider broke the news on Sina Weibo, saying that Shenzhen Shifang Optoelectronics Co., Ltd. (hereinafter referred to as “Shifang Optoelectronicsâ€) was in arrears due to fraudulent suppliers of 80 million yuan. The company’s 220 employees were on the verge of bankruptcy for two months. The reporter then called the headquarters of the company, and its employees confirmed that the company has stopped production.
The reporter learned from the Shenzhen Municipal Market Supervision Bureau commercial subject information inquiry platform that Shenzhen Shifang Optoelectronics was established in July 2010 with a registered capital of 1 million yuan. The legal representative is Deng Junguo, mainly engaged in LED light-emitting diodes and LED dot matrix modules. LED display and lighting business.
This is another LED display company was eliminated after Shenzhen Yiguang Technology Co., Ltd. ceased production in July this year. In just one month, two consecutive LED display companies have gone bankrupt. It is not difficult to see that the pace of LED display industry shuffling is accelerating.
It is worth pondering that the collapse of these small and medium-sized LED enterprises seems to imply that the pattern of the entire industry is gradually diverging, and the LED industry is gradually entering a period of self-adjustment.
Industrial pattern differentiation trend
“Since last year, the pattern of the LED display industry has been changing. Although LED companies are still going bankrupt this year, some LED display companies are seeking new ways to save themselves.†Shenzhen Easystar Electronics Lei Yu, marketing director of the company, told reporters.
Since 2011 and 2012, a number of LED display companies, such as Yan Duoli, Vision Optoelectronics, Bolent, and Haobo Optoelectronics, have closed down, and the shadow of bankruptcy shuffling has been shrouded in the LED display industry. The slowdown in market demand growth and the continued decline in gross margins have led many display companies to explore new paths for life.
The LED display manufacturers represented by Zhouming Technology are gradually exerting their efforts in the LED lighting market in order to avoid the risk of single business operation of LED display.
However, the transformation of LED lighting is not the "Wanjin Oil" strategy of the display industry. Enterprises represented by Lianguang Optoelectronics, Liard, and Ruituo Display also expand their space in business models and market segments. Including the advertising screen-changing sales model of Lianguang Optoelectronics, Liard's exploration of LED small-pitch TV products, but the market outlook remains to be seen.
In fact, since the first half of this year, another manifestation of changes in the display industry landscape has been the acquisition of two companies, Mai Rui Optoelectronics and Lianteng Technology.
"In the current downturn of the display market, the old batch of companies that have failed to land in the capital market but have considerable strength may be a good choice for mergers and acquisitions." A display industry veteran told reporters that the current LED display Although the screen industry is in a period of pain, the reshuffle integration also indicates that the pattern of market differentiation is becoming more and more clear.
Where do SMEs go?
For SMEs that lack financial support, the continued weakness of the display market is even more stretched. The reporter learned that the current profitability of LED display companies is weak, and the net profit margin is generally less than 5%.
The Gaogong LED Industry Research Institute (GLII) reported that the current domestic sales of around 100 million yuan in actual value, in fact, the net profit is less than 5 million yuan. In the first half of this year, the growth rate of the industry's output value was around 10%-15%. The industry's growth rate continued to slow down, corporate orders fell, and prices continued to decline. This is still the main tone of the market in the second half of the year.
“Shuffle is a necessary process for any industry to mature. Smaller display companies such as Shifang Optoelectronics will be eliminated a lot later. But small and medium-sized display companies are not without a survival path.†Shenzhen Decai Photoelectric Co., Ltd. always helped Wu Wenliang to tell the reporter.
Wu Wenliang believes that according to the current domestic LED display market competition situation, if small and medium-sized enterprises want to survive, they can adopt the strategy of product line contraction, streamline product categories, and make several products with differentiated advantages to enhance and strengthen. Segment market competitiveness.
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