LED industry began to reshuffle tide After a few years of arrogance, the domestic LED industry is experiencing a period of low sales beginning in the second half of last year. Recently, at the 111th Canton Fair, we learned that the year-to-date Chinese LED companies' orders from Europe and the United States have fallen by 30%.

On the other hand, although the growth rate of 11 companies in the annual reports of 13 companies listed from last year to the first quarter of this year has been seriously declining, in order to avoid being misappropriated by mergers and acquisitions, the IPO of domestic LED companies is still in full swing.

Data from the world's largest lighting show Guangzhou International Lighting Exhibition shows that the scale of the exhibition to be opened in early June will increase by 10%, while the number of exhibitors will decrease by 12%. Behind the buzz of capital LED, there is a flood of industry reshuffle.

Export orders fell by 30%

Relevant statistics show that at present, 70% of LED companies in China are still export-oriented. Under the influence of the European economic crisis and the inability of the United States to recover economically, orders from companies have decreased since the second half of last year.

“This year, the market situation in Europe and the United States is particularly severe, and orders have been reduced by 40%.” Cai Yahui, Chairman of Shenzhen Baochengxin Optoelectronics Technology Co., Ltd., who is an LED lamp, told reporters. Another Dongguan-based company also told reporters that orders from Europe have decreased by more than 50%. Reporter learned from a number of LED companies, Europe and the United States orders fell by 3 to 50% in the industry is quite common.

Reduced orders directly led to a decline in many businesses. According to the statistics of the Guangdong Guangya Lighting Research Institute, the 2011 annual results report released by 12 companies listed from last year to the first quarter of this year showed that only Slight Optoelectronics and Alliance Optoelectronics have maintained a slight increase in growth rate, and another 10 The growth rate of home companies has declined to varying degrees. Among them, long-term lighting with a growth rate of 234% in operating revenue in 2010 had a growth rate of only 57% in 2011. VanRun Technology's performance is even zero growth.

Analysts believe that due to the uncertain economic situation in Europe and the United States, the export situation of lighting companies will remain severe this year.

IPO boom is a shuffle prelude

In contrast to the industry downturn, the IPO enthusiasm of domestic LED companies is still rising this year.

According to statistics, only in the first quarter of this year, there are 8 LED companies that have already been listed and will be ready for launch, which is more than the total number of LED companies listed in the company last year; among them, there were 6 listed and passed conferences in March. At the end of last year, there were four led companies reporting the "grand" of the meeting. Industry insiders are generally expected that the tide of listing of LED companies will continue to be staged this year.

On the surface, the IPO boom seems to be contrary to the industry conditions, but the analysis of the Guangya Lighting Institute believes that the emergence of the listing boom is actually a preparation for the future; otherwise, it is very likely to be swallowed by potential mergers and acquisitions. The international LED giants such as Philips and Osram in the Chinese market, well-known domestic companies such as BOE and Tsinghua Tongfang who have crossed the border into the LED industry, as well as traditional lighting companies with well-established brands and channels, have become potential M&As for many LED small and micro enterprises.

The beginning of the tide of shuffling

“The industry's temporary trough has provided a time for reshuffling. International giants and domestic LED companies competing for listing have become the dominant players in reshuffling,” said Dr. Pan Wenbo, founder of Guangzhou International Lighting Exhibition.

It is estimated that there are currently about 8,000 LED companies in the country, which are in a state of “small and scattered”. The industry's call for rectifying the industry's development order through shuffling has always been high. In fact, the undercurrent of shuffling is also surging in the industry. Since last year, there have been incidents of LED companies closing down.

According to reports, as of the end of 2011, there were more than 80 LED lighting companies that closed down in Shenzhen, and Foshan, which is located in the Guangdong Province, was close to 10% of LED lighting companies in mid-2011. Immediately after Shenzhen and Foshan, LED lighting companies in Dongguan and Zhongshan also fell into the cold wave of closure.

As a barometer for the global lighting industry, Guangzhou International Lighting Exhibition also showed signs of industry reshuffling. According to Pan Wenbo, the 17th Guangzhou International Lighting Fair, which was held in June this year, has expanded its exhibition area by 10% from last year to reach 22%. The historical high of 10,000 square meters, but the number of companies decreased by 12% from last year, from 2900 to 2,600, showing that the degree of concentration of the company increased, the industry reshuffle is beginning.

The industry believes that for the Chinese market, in 2012 many small businesses in the LED industry will face tough competition and face reshuffle in the industry, but they must still face the future with caution. The industry's reshuffle is only stronger and has technical content. The manufacturers will have a better life.

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