Relying on the strong support of local governments, the entire domestic LED industry has seen an unprecedented investment boom in recent years. However, under the support of the industrial development prospects of the scenery and the government's relevant policies, most LED companies have to face the dilemma of loss, and even triggered the recent collapse of the hot debate. Because the entire LED industry is currently in a crisis of structural excess, the LED investment planning and construction capacity that has been competing in the past two years has far exceeded the actual demand of the market.
According to industry insiders, due to the lack of upstream core technology, China's LED companies are now in the middle and low-end areas of packaging and applications, and the resulting product homogeneity is serious, and the purchasing power of the European and American markets is declining, except for some high-end products. In addition, orders as a whole have a downward trend.
Government orders dominate the local care of local companies in the domestic LED lighting market 95 is a government order. Industry insiders said. Judging from the public information, government orders are basically the first month of the near-water platform. Sanan Optoelectronics is headquartered in Xiamen and has projects in Huainan City. The LED street Light orders of these two cities have fallen into Sanan Optoelectronics; Dehao Runda is headquartered in Zhuhai, and at the end of November, it also announced the acquisition of Zhuhai 30,000 LED street light projects. Wuhu also gathered two giants of Sanan Optoelectronics and Dehao Runda, so the orders for LED streetlight projects in Wuhu were equally divided.
In the first three quarters, only 7 of the 20 LED listed companies in the A-share market grew, and the leading company Sanan Optoelectronics remained profitable, but the net profit growth rate of 14 decreased compared with the same period of last year. Reshuffle next year to dump at least half of the company, this is the judgment of the LED industry during this period of time.
It is understood that in 2013, the price of LED products continued to fall, and some LED lighting products were close to the price of compact energy-saving lamps, which initially had an alternative advantage, which objectively stimulated market demand. Relevant business people admit that from the current situation, their performance is indeed better than 2012, but still expect the government to give more subsidies to this emerging industry. There are also views that there are more than 5,000 companies in the LED industry with less than 200 billion yuan, and the concentration is low. In the future, we must be prepared for the upcoming industry mergers and acquisitions.
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