[High-tech LED News] The cost continues to rise, and the profit of LED lighting companies has dropped by nearly 7%. This is the result of recent research by Foshan Lighting Association. Recently, Gaogong LED reporter learned from the local lighting association that according to the survey, the orders of these 50 companies (about 1/5 of local LED companies) have decreased, at least 10%, and the most are more than 30%. At the same time, the company's production costs rose by an average of 30%, and 70% of corporate profits fell.
According to Nanhai Customs data, in the first eight months of this year, the export of Nanhai lighting and lighting products only increased by 6% during the same period, and decreased by 2% in August. Wu Yulin, president of the Foshan Light Association, told reporters: "This is still supported by the orders that were suppressed last year. The orders for this year alone have dropped more."
Zhang Shuhua, general manager of Guangdong Zhaoxin Lighting Co., Ltd. told reporters that last year, Zhaoxin’s domestic sales accounted for only 20%, accounting for 50% this year. “Foreign market orders fell by 40%.â€
Luo Jianguo, general manager of Foshan Songbei Optoelectronics Technology Co., Ltd. said that under this predicament, the company can only cut production, "the specific production reduction situation is being formulated." According to the lamp coordination research, more than half of the companies have reduced their production intentions, reducing the output by more than 20%. At the same time, measures such as layoffs and unpaid leave have also appeared. In the survey, a 400-person company quit more than 100 people due to production cuts.
Most of these enterprises are small and medium-sized enterprises. On the one hand, exports are slowing down, on the other hand, large enterprises are pouring in. In the early years, small and medium-sized LED lighting companies were more profitable, but now they are facing tremendous pressure to survive.
Facing the brand and capital shock of big companies
In 2011, the traditional home appliance industry giants, Konka, Skyworth, Samsung and others have been involved in LED lighting. Different from small and medium-sized enterprises, according to the reporter's investigation, the average order growth of these large enterprises is more than 50% this year. An industry insider told reporters the reason: "This is mainly due to the strong capital and diversification of large enterprises. Channels and influential brands."
Zhou Jianhong, deputy general manager of Konka Group Co., Ltd. said in an interview: "Small enterprises have no cost advantage. Konka Group invested in LED lighting in 2003, from research and development, production to sales; from packaging plants, to chip factories, to lighting. The factory has formed a complete industrial chain. The cost advantage of this mass production is unmatched by many small and medium-sized enterprises."
Zhou Jianhong also said that the current pressure on large and medium-sized enterprises is mainly reflected in three aspects, one is the impact of the brand, the second is the cost impact under the scale, and the third is the impact of quality.
Shortage of funds into the biggest obstacle for SMEs
In addition, the continued tightening of monetary policy has also caused many small and medium-sized LED companies to fall into the financial difficulties of survival and development. Since last year, the central bank has raised the deposit reserve ratio for 12 consecutive times, and the level of 21.5% has already reached a record high. The small and medium-sized enterprises that use the private financing channels must be used after the discount of the acceptance bills, so that the overall bank financing cost is 12%. For small and medium-sized enterprises with a current gross margin of 15%, how can they withstand such large loan financing pressures?
In the first half of this year, small and medium-sized LED lighting companies in Jiangsu and Zhejiang provinces were on the verge of bankruptcy in the case of tightening monetary policy. According to the “Second Quarterly Report of the Private Economy Business Climate Index of the Province†issued by the Zhejiang Provincial Administration for Industry and Commerce, 31% of the 2,600 private enterprises that tracked and monitored it believe that the current financing cost is too high.
"The average profit rate of the LED lighting industry is no more than 10%, and there are not many enterprises with a profit margin of more than 5%. The living environment of SMEs is even more difficult than that of 2008." Cai Zhangsheng, director of the Office of the SME Bureau of Zhejiang Province, is a high-tech LED reporter. Said.
Recently, the SME Operation and Financial Service Index issued by the Shenzhen Banking Regulatory Bureau showed that corporate financing demand increased by 10% from the previous month, the average financing demand was 27.82 million yuan; the corporate financing gap increased by 22%, and the average financing gap was 3.32 million yuan, which reflects Shenzhen enterprises are generally "lack of money."
On the other hand, the overlapping effect brought about by the appreciation of the renminbi and various rising costs has further aggravated the operating pressure of SMEs. Rising raw materials and rising labor costs have added to the shortage of SMEs.
Lack of market, lack of core competitiveness technology, lack of funds, lack of equipment, and the situation of SMEs.
According to Nanhai Customs data, in the first eight months of this year, the export of Nanhai lighting and lighting products only increased by 6% during the same period, and decreased by 2% in August. Wu Yulin, president of the Foshan Light Association, told reporters: "This is still supported by the orders that were suppressed last year. The orders for this year alone have dropped more."
Zhang Shuhua, general manager of Guangdong Zhaoxin Lighting Co., Ltd. told reporters that last year, Zhaoxin’s domestic sales accounted for only 20%, accounting for 50% this year. “Foreign market orders fell by 40%.â€
Luo Jianguo, general manager of Foshan Songbei Optoelectronics Technology Co., Ltd. said that under this predicament, the company can only cut production, "the specific production reduction situation is being formulated." According to the lamp coordination research, more than half of the companies have reduced their production intentions, reducing the output by more than 20%. At the same time, measures such as layoffs and unpaid leave have also appeared. In the survey, a 400-person company quit more than 100 people due to production cuts.
Most of these enterprises are small and medium-sized enterprises. On the one hand, exports are slowing down, on the other hand, large enterprises are pouring in. In the early years, small and medium-sized LED lighting companies were more profitable, but now they are facing tremendous pressure to survive.
Facing the brand and capital shock of big companies
In 2011, the traditional home appliance industry giants, Konka, Skyworth, Samsung and others have been involved in LED lighting. Different from small and medium-sized enterprises, according to the reporter's investigation, the average order growth of these large enterprises is more than 50% this year. An industry insider told reporters the reason: "This is mainly due to the strong capital and diversification of large enterprises. Channels and influential brands."
Zhou Jianhong, deputy general manager of Konka Group Co., Ltd. said in an interview: "Small enterprises have no cost advantage. Konka Group invested in LED lighting in 2003, from research and development, production to sales; from packaging plants, to chip factories, to lighting. The factory has formed a complete industrial chain. The cost advantage of this mass production is unmatched by many small and medium-sized enterprises."
Zhou Jianhong also said that the current pressure on large and medium-sized enterprises is mainly reflected in three aspects, one is the impact of the brand, the second is the cost impact under the scale, and the third is the impact of quality.
Shortage of funds into the biggest obstacle for SMEs
In addition, the continued tightening of monetary policy has also caused many small and medium-sized LED companies to fall into the financial difficulties of survival and development. Since last year, the central bank has raised the deposit reserve ratio for 12 consecutive times, and the level of 21.5% has already reached a record high. The small and medium-sized enterprises that use the private financing channels must be used after the discount of the acceptance bills, so that the overall bank financing cost is 12%. For small and medium-sized enterprises with a current gross margin of 15%, how can they withstand such large loan financing pressures?
In the first half of this year, small and medium-sized LED lighting companies in Jiangsu and Zhejiang provinces were on the verge of bankruptcy in the case of tightening monetary policy. According to the “Second Quarterly Report of the Private Economy Business Climate Index of the Province†issued by the Zhejiang Provincial Administration for Industry and Commerce, 31% of the 2,600 private enterprises that tracked and monitored it believe that the current financing cost is too high.
"The average profit rate of the LED lighting industry is no more than 10%, and there are not many enterprises with a profit margin of more than 5%. The living environment of SMEs is even more difficult than that of 2008." Cai Zhangsheng, director of the Office of the SME Bureau of Zhejiang Province, is a high-tech LED reporter. Said.
Recently, the SME Operation and Financial Service Index issued by the Shenzhen Banking Regulatory Bureau showed that corporate financing demand increased by 10% from the previous month, the average financing demand was 27.82 million yuan; the corporate financing gap increased by 22%, and the average financing gap was 3.32 million yuan, which reflects Shenzhen enterprises are generally "lack of money."
On the other hand, the overlapping effect brought about by the appreciation of the renminbi and various rising costs has further aggravated the operating pressure of SMEs. Rising raw materials and rising labor costs have added to the shortage of SMEs.
Lack of market, lack of core competitiveness technology, lack of funds, lack of equipment, and the situation of SMEs.
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