Millions of debt owed to Shenzhen Leixing Optoelectronics!

Yesterday afternoon, Leixing Optoelectronics was located at the office on the fifth floor of a slightly dilapidated office building at No. 9, Xixiang Avenue, District 74, Bao'an District, Shenzhen. The yellow guys were locked tightly by a large lock and the doorway sign was also Withdraw, the corridor outside was covered with dust.

Another company staff member working in the same building told the reporter that Leixing Optoelectronics had closed down a few days ago and the personnel had all moved away. The equipment was also removed a few days ago. “The west side of the fifth floor was formerly the factory of Leixing Optoelectronics. Listening to the boss said that it was a loss. Now sell the factory and go home.”

"It has indeed been closed down. It is in recent days." Chen Jun (a pseudonym), who was responsible for sales at Lei Xingguang, also confirmed to the reporter that Leixing Optoelectronics has indeed closed down. Because of the inability to pay back the payment, the equipment is now sold to the supplier.

Breaking of the capital chain is the last straw that beats Leixing Optoelectronics. Chen Jun said that before the bankruptcy, the company had about 1 million yuan in payment could not be recovered, resulting in the fracture of its capital chain, the largest one of the arrears of about 300,000 yuan. At the same time, the upstream suppliers are constantly reminding them that the company can only use its own funds to advance. Now it is really not going.

"The boss is outside every day, the main job is to collect debts." Chen Jun said that after the problem, Lei Xingguang has also received self-help. However, some customers failed to recover due to the failure of payment, while some customers had defaulted on payment, so the effect was not significant. "Lee Star was slowly dragged to death."

According to a person familiar with Leixing Optoelectronics, Leixing Optoelectronics was established in 2010 and has a total investment of about RMB 3 million, mainly LED packaging. Last year, it started producing light-emitting diodes. Lei Xing's small scale is only worth more than RMB 1 million each month, and the RMB 1 million is not a small amount.

The breakage of the capital chain is not the whole reason for the collapse of Leixing. According to Chen Jun, Lei Xingguang began to lose money in the second half of last year, this year's business is also very bleak, only in April or May to make a little money, but began to lose money after June. In the most recent year, the company was in a state of total loss, and the purchase price could not be recovered. “Many LED companies that started at the same time as Leixing are doing well now. The problem is mainly in Leixing itself.” He said. Leixing Optoelectronics focuses on mid- to high-end products, and this requires considerable financial and technical support to form a brand influence. Leixing Optoelectronics does not have such strength and has never been able to form a brand. Products cannot be sold in the market.

On the other hand, Lei Xingguang's business strategy is also worth discussing. Chen Jun said that many of Leixing Optoelectronics' customers are LED counterparts, and some companies can't make orders, let Leixing optoelectronics foundry, once the downstream customers default payment, the capital chain will break. In addition, since its inception, Leixing Optoelectronics has had limited market development efforts and has mainly relied on the resources of three shareholders. Client resources have been limited and it has become one of the biggest problems of Leixing Optoelectronics.

In fact, the closure of Leixing Optoelectronics is just a small wave in the tide of LED industry reshuffle.

Some industry analysts have told reporters that there are more than 10,000 LED lighting companies in the country and there has been a clear overcapacity. In the first half of 2013, the utilization rate of domestic LED lighting companies was only 60%, slightly better than before.

As the cost of materials decreases and market competition intensifies, the prices of LED lighting products have rapidly declined. From January to June this year, the price of LED lighting products fell by more than 10% month-on-month; the prices of low-end and mid-range LED lighting products decreased by 30%-40% month-on-month, and the average one-watt price was less than one yuan, which was also lower than traditional lighting.

"LED companies that have been eliminated will only become more and more." The source said that in order to compete for customers, fight prices, to fight payment methods, credit sales phenomenon is quite common, last year, the LED industry began to appear in the triangle. This can easily lead to the problem of cash outflows from LED lighting companies, which cannot be paid to suppliers in a timely manner. The supply trader's palpitations, as soon as he sees no payment, will immediately stop the supply of materials.

LED display industry has entered the integration stage. Due to the relatively slow growth of the LED display market, this year, only about 10% of the growth, and product homogeneity is serious, prices continue to decline. It is estimated that in the next four to five years, more than 1,000 domestic LED display screen factories will only leave half of them. Recently, the failure of Optoelectronics is an example.

Zhu Bingzhong, deputy general manager of Dongguan Qinshang Optoelectronics Co., Ltd., also believes that small LED companies can survive by adopting the OEM model. If there are only ten or eight LED brands remaining in the country, they have a large volume of sales and a high share, and they have continued to integrate small businesses.

“It is not really called shuffling. LED lighting companies are struggling to support the arrival of spring. If there is no good cash flow, they can only be eliminated by the market.” Xu Xinqi, general manager of Beijing Redsun Energy Saving Technology Co., Ltd., said that now LED lighting key projects or rely on policy support, garages, schools, supermarkets and other commercial lighting market has started, but the civilian LED lighting market has not really risen. At present, the access threshold for LED lights is not high, and a large number of LED assembly factories in Zhongshan are referred to as the “bedboard industry.” Large companies such as TCL and Midea are also cutting in. Small companies can survive with several bulbs, and there are many ways to survive in the market. Diverse. There is no real big brand in the domestic LED industry. "As long as you don't die, you can live better when spring comes."