What are the crises in the LED industry?
The LED industry is currently over financing crisis
In 2011, a total of 7 domestic LED industry companies achieved IPOs in the A-share market, with a cumulative financing amount of 3.625 billion yuan, and an average of 518 million yuan in financing by a single company. From the perspective of market distribution, five of them are listed on the ChiNext, and the other two are listed on the SME Board. The expansion plans of these companies are ambitious, and the funds raised are almost without exception used in capacity expansion projects and industrial chain extensions.
The over 3 billion raised funds have not been activated yet, and another 9 companies are lining up to be listed
LED has become one of the most popular industries for venture capital and private equity investment. This is the message delivered at the "Looking for the Spring of LED Industry" seminar held in Beijing recently.
The application of LED has brought a "revolution" to the traditional lighting industry. In recent years, the domestic LED lighting industry has rapidly heated up and become the "darling" of the capital market, but behind the capital boom, it is difficult to conceal the embarrassment of industrial development: core technology is controlled by people and production capacity Excess and disorderly competition.
This year, the popularity of LED companies going public is still unabated. On February 1, the China Securities Regulatory Commission announced that a total of 515 IPO applications are under review. At least 9 related companies are queuing to be listed. These companies to be listed involve all links in the industrial chain of epitaxy, chips, packaging, and applications.
On November 4, 2011, the National Development and Reform Commission officially announced the "China Roadmap to Eliminate Incandescent Lamps", planning to completely eliminate incandescent lamps for general lighting by 2016. my country is a major producer and consumer of incandescent lamps, with a stock of about 15 billion incandescent lamps. The annual output and sales volume are approximately 3.85 billion and 1.07 billion.
This will have long-term benefits for the LED lighting industry and energy-saving lamp industry. The market scale formed by only replacing the existing incandescent lamps will reach several hundred billion yuan.
In order to achieve the goal of energy saving and emission reduction, this year the Chinese government has increased its subsidies for energy-saving and environmentally-friendly products. On March 20, 2012, the "2012 Semiconductor Lighting Products Financial Subsidy Promotion Project" organized by the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Science and Technology conducted a domestic public bidding in Beijing. A total of 110 enterprises in the Mainland participated in the bidding.
The proportion of government subsidies this time is about 30% of the purchase price, and the total amount is expected to reach hundreds of millions. The subsidy funds are in the form of indirect subsidies. Financial subsidies are provided to the winning bidders, and the winning bidders are then sold to end users at the price of the bid-winning contract supply price minus the financial subsidy funds.
The National Development and Reform Commission has previously made it clear that in 2012 the Chinese government will spend 40 billion yuan on the purchase of LED street lights and provide 30% financial subsidies to users of LED street lights.
The local government also responded positively. During the "Twelfth Five-Year Plan" period, Guangdong Province requires all financial investment in lighting projects and newly planned development areas to use LEDs in the public lighting field. Guangdong's replacement of street lights with LED lights in the next three years will bring a market of hundreds of billions of yuan.
The subsidy policy not only stimulates the LED public lighting market, but also stimulates the demand for civilian LED lighting, which is conducive to the development and growth of the LED industry. With the gradual recovery of the global economy and the stimulus of government subsidies, the LED industry is expected to usher in a turnaround in the second half of this year.
As soon as 2015, LED's share of China's lighting market will reach 20%, driving the industry to reach 500 billion yuan, and China will also enter the top three in the global LED lighting market.
The state launched the bidding for the LED lighting financial subsidy promotion project. On the one hand, it will stimulate the downstream LED lighting demand through subsidies, and on the other hand, it will also promote the improvement of the quality and performance of LED products.
LED lighting will become the mainstream lighting application in the future. However, due to overheated investment, high cost, and lack of standards, domestic downstream demand has not been effectively stimulated, and the LED industry has experienced overcapacity and disorderly competition.
The status quo that the core technology is restricted by others is the biggest "hidden danger" of the entire domestic LED industry.
LED chips are the core material of LED lighting. LED companies are rapidly expanding their production capacity with the support of favorable policies and capital. However, domestic LED companies mainly concentrate in the application field, and there are few independent research and development upstream chips. Domestic related technologies and industries are still in place. Incubation period. At present, most of the chips for LED lighting products in China are mainly imported from the United States, Japan, Taiwan and other places.
There are 10 LED companies listed on the domestic market that have raised more than 6 billion yuan, of which 3 billion yuan is over-raised, and most of the over-raised funds are on the account. Most of these listed companies are at the end of the LED industry chain, and the funds raised are not used for technological upgrades or development of core technologies.
Philips and other international companies continue to accelerate the pace of mergers and acquisitions, and accelerate the layout of the entire industry chain when the industry enters the traditional off-season. At the end of last year, Philips acquired the Spanish Outdoor Lighting Group, one of the world's top five lighting manufacturers, to accelerate the in-depth layout of the global LED lighting industry chain and increase investment in China. In December 2011, Philips invested 25 million euros to build an LED lighting center in Chengdu.
Some multinational giants have formed LED patent alliances. They are step by step to promote technology monopoly strategy, which will bring greater pressure to the Chinese LED market, and the injection of a large amount of domestic capital into the LED industry will lead to the expansion of LED production capacity. Shuffle is inevitable.
The person in charge suggested that if the government gives appropriate points to products that use domestic LED chips during project bidding, and let them account for a certain proportion, this will be beneficial to the development of the national LED industry.
Some industry veterans have reminded that if the national industry is not yet mature, opening up the huge potential market of LED lighting too early and too soon may cause the embarrassing situation of "making clothes for others".
