LED industry in Guangdong "self-criticism"

A few days ago, the bosses of major lighting companies in Guangdong rushed to a luxury hotel in Guangzhou. At the dinner party, they exchanged ideas and tried to find a little warmth when the LED suffered a "winter".

“In recent years, there have been too many LED companies that have closed down in Guangdong.” At the dinner on that day, a business owner who did not want to be named told reporters, “Among them, Zhongshan and Shenzhen are particularly prominent.”

An obvious example is that the Guzhen town government of Zhongshan City reported some time ago that the owner of a local Hundred million-dollar LED lighting factory (hereinafter referred to as “Hung Hsiang”) suspected to have escaped hiding, suspected of contract fraud and refusing to pay labor compensation.

A person in the industry in Zhongshan told the reporter at the dinner that day that the public security agency had stepped in. The police discovered that Xie Yingxiong had a large number of bank cards and he was half a meter long. “He passed so many bank cards. To spread the risk."

Hyoji is the epitome of the blind expansion of many LED companies in Guangdong and even in China. Our reporter learned from the interview that after entering the LED industry, Hung Kee’s business scale has grown by leaps and bounds. Xiong Ji recorded a production value of 150 million yuan last year, and Xie Yingxiong invested less than 10,000 yuan at that time.

Lu Shukui, deputy secretary-general of the China Illuminating Society, once told this reporter that Guangdong's LED industry is immature and its products are not mature enough to be launched blindly. However, when companies encounter difficulties, they conduct vicious price competition with each other. An industry insider told this reporter that Xiong Ji had sold some products that had originally been sold for 6 yuan, and sold less than 4 yuan before it collapsed.

Some business owners admit to this reporter that the government’s excessive preferential policies and financial subsidies have caused companies to dare to take risks so as to obtain more wealth in a short period of time.

During the "12th Five-Year Plan" period, the Guangdong Provincial Government invested 450 million yuan each year to set up a special fund for LED industry development. According to the "Guangdong Province's Implementation Plan for the Promotion of the Use of LED Lighting Products" issued in May 2012, Guangdong will take the lead in lighting projects in public lighting, namely roads, public places, government agencies, state-owned enterprises and other financial or state-owned capital investment projects. In the field, the LED lighting products have been widely promoted and applied. According to the plan, Guangdong's LED industry will reach 500 billion yuan at the end of the "Twelfth Five-year Plan" period.

Yu Shukui analysis, LED companies blindly launched, misaligned sales path, is currently the predicament of China's LED industry. Some companies lack sufficient understanding of LED products and do not know what LED is.

At the banquet, Chen Yansheng, vice chairman and secretary-general of the China Lighting Association, was invited from Beijing to cheer for these entrepreneurs. He said that Guangdong is a major producing area of ​​China's lighting and lighting industry and has thousands of lighting lighting companies. It is hoped that these entrepreneurs will unite to promote the development of the lighting industry in Guangdong.