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Since the collapse of the company last year, there has been another LED company with a scale of over 100 million yuan in the previous period. In the first half of this year, although the investment boom in LED upstream chips and other fields has come to an end, the middle and lower-end packaging application fields have become a new investment hotspot, especially in the field of lighting. More and more companies are entering the market, and the disorderly competition in the market is becoming more and more fierce. Many companies are in dire straits. The collapse of Vision Optoelectronics has touched the nerves of entrepreneurs who are sincerely looking for the future of the LED industry. At present, in the context of the uneven development of the entire LED industry and the deteriorating export environment, many LED companies are afraid that they will fall. To this end, Gaogong LED reporters visited the upstream and downstream enterprises to listen to the voices of entrepreneurs.
Enterprises are at risk of risk
Our products are mainly car lights. The most important problem in the domestic market is the repair. Rework is basically losing money. Of course, apart from the market reasons, we also have problems. In the early stage, the company focused on sales and the after-sales service did not keep up, so the current investment in after-sales service is huge.
Although the domestic market has government subsidies, it basically has little to do with SMEs. In the second half of the year, we are more worried that the market will continue to deteriorate and increase the risk of financial breaks. It is difficult for domestic SMEs to make loans to banks, and sometimes they have to take risks.
The collapse of Vision Optoelectronics has also touched our nerves. Sometimes, for enterprises, business volume is increasing while operating costs are rising. Coupled with domestic inflation, many business owners believe that LED is a sunrise industry and there will be a big future. Development, will choose to gamble, in order to survive this period of time.
Many people say that LED business owners have gambling psychology. I think this is caused by the imbalance of the entire industry. Most of the domestic resources are beneficial to several large companies. For small and medium-sized enterprises, the operating environment is very bad.
At present, we are facing similar problems. As the number of cooperative customers continues to increase, the company's scale product line is also expanding, but the sales volume has not come up. In the second half of the year, we also intend to introduce LED packaging equipment and expand the product line. However, the capital investment is very large. We have also examined the risks ourselves. After all, there is an example of vision photoelectric, and we will prevent it from following the footsteps.
——Li Peibing, Deputy General Manager of Sanmu Lighting Appliance Industry Co., Ltd.
Increase the business risk of the company by increasing the payment period
Our main business is driven. In 2009, we established a joint venture with Taiwan Yazhuang to establish Foshan Nanhai Ousailang Electric Co., Ltd., which implements the model of mainland production and Taiwan sales. However, since last year, the domestic and international environment has continued to deteriorate, and our orders have been declining. Customers in the European and American markets have been pressing prices. The overall environment in the first half of the year is not optimistic.
In the driving field, especially in the domestic market, the driving threshold is too low, there is no standard, and the market is very chaotic. Everyone is playing a price war, which is very unfavorable for our quality-oriented companies, so we can only focus on foreign markets. Compared with the domestic market, foreign markets have certification standards in the driving field, especially in Europe and the United States. Relatively speaking, foreign markets are more suitable for us to develop.
The closure of Vision Optoelectronics has played a warning role for us. Especially in the case that the entire LED environment is not good, there are too many uncertain factors. Even if a big company makes a mistake, it may face the risk of bankruptcy. For our small and medium-sized enterprises, the risk of cooperation with large domestic enterprises is even greater. The cooperation with large enterprises is long-term, and the monthly payment for goods like NVC and Opp is not as expected. At present, many small and medium-sized enterprises in China have been closed down by large enterprises.
In the downturn of the industry, the cycle of large enterprises' payment is even longer. SMEs are more than patience and more than anyone else. This situation will not benefit anyone for a long time. There may be only two options: either being integrated or being eliminated.
——Tang Changning, General Manager of Foshan Nanhai Ousailang Electric Lighting Co., Ltd.
Traditional enterprise transformation must be decided
We are mainly engaged in traditional T5/T8 lamps. Although the LED development trend is rapid, the T5/T8 we produce now has more advantages than LED tubes. Under the LED trend, it can survive for at least 5 years. We are mainly engaged in the export market. In terms of sales, this year's growth rate is 30% compared with last year. At present, most people in Europe and the United States tend to use traditional lighting products, because traditional lighting is mature and cheap compared with LED.
The 18-watt T5/T8 lamp we produce has a life expectancy of 30,000 hours, but the price is only one-fifth of the same wattage LED tube. But now we also face two risks: First, LEDs are increasingly impacting traditional lighting companies; on the other hand, we are also facing difficulties in transition.
Many people in the industry believe that the reason why Vision Optoelectronics collapsed is that its production equipment is too old to keep up with the demands of modern scale production. I think this view is one-sided. I believe that when Vision Optoelectronics was first established, it was also a very cutting-edge production equipment. However, this situation has developed too fast. Many bosses want to transform, but there is no way to transform. I often think that our current products are still very competitive in the market, but turning LEDs is equivalent to all the original equipment wasted, and it is worthless to sell. It is estimated that the vision is also facing the same problem before.
The collapse of Vision Optoelectronics also motivated me to transform as soon as possible, so as to avoid the embarrassing situation that I have no way to transform.
——Dong Hongliang, General Manager of Foshan Weizhaoyeguang Energy Saving Co., Ltd. 
[Source: "High-tech LED-Lighting Market" August issue Zhang Wei]