LED market is flooded with cheap inferior products in the next three years or phase-out of more than half of the company

The LED listed companies or wearing ST cap, some enterprises even delisting. Flush statistics show that in the beginning of the year to November 10, the LED business listing seven, stock prices all fell sharply, down from 20% to 65% range, not only is the market environment fell from performance The seven four performance decline, the lowest decline by 18%, the highest decline of 94%. Flush Statistics show that 20 listed companies, 13 of the company's third quarter net profit fell the Jiawei shares Silan, BDO Runda, Nanda photoelectric decline of up to 92%, 88%, 57% and 52 %, while the seven listed companies only growth performance, the leading three safety photoelectric operating income, net profit were also increased by only 23% and 13%, respectively, increased by only 5% and 20% of the ground on photovoltaic these two indicators, The two companies in 2011, 2010, the performance increase is generally maintained at about 100% and 50%. A number of LED very meager profits of the listed companies in the third quarter, as Jiawei shares third quarter net profit of only 342 million, of Silan and Chau Ming Technology is also just a profit of 15 million yuan and 18 million yuan in 2011, following Jun the enterprises established company, Bo Lunte photoelectric, this year's Vision photoelectric company gone out of business recently to invest a billion LED display Haobo photoelectric struggling with financial difficulties and arrears huge amount of money and staff salaries and commission At this point, however, there are a lot of home appliance giant is entering the lighting market. In this regard, Yin Kang, co-founder of Shanghai Teyou Shi lighting are not optimistic. Vice chairman and secretary general of the China Association of Lighting Chen Yansheng said: "sell the bulbs and sell TV different appliance giants want to sell fixtures, the game is the use of appliances channels."

Emerging LED industry was mixed, there are many low-cost low-quality strategy, some LED products in the enterprise is reduced to a rubbish Chen Yansheng told reporters that more than 50% of the lamps were manufactured in China, Japan lighting market. Chinese lighting industry has a certain status in the world, but is not strong enough. This industry has a capacity of over 2000 billion market, and why so many businesses are struggling?

In 2011, Guangdong LED industry production value reached 151.5 billion yuan, double growth for two consecutive years. January to September 2012, the unfavorable situation in the international financial crisis, increased downward pressure on economic, Guangdong LED industry contrarian growth in output value of 125 billion yuan, a year-on-year growth of 17.2%; expected output value of over 200 billion this year yuan, output value and scale continue to be among the first in the country. The data from the Science and Technology Department of Guangdong, Guangdong Province, LED listed companies amounted to more than 20, Kingsun, Hongli Opto-electronic companies has landed in the capital market, with a total market capitalization of more than 20 billion yuan, but statistics according to the the extensive evidence Hang Seng consulting company PRD enterprises to get involved in upstream materials and chip listed companies only BDO Runda, country star power and Neo-Neon, country star power in the middle reaches of the packaging industry in the larger, the rest of the majority of listed companies in the business or in the downstream lighting applications , operating income reached 10 billion enterprise is very rare for the implementation of the second five energy saving plan, since 2009 state LED lighting industry subsidies unabated. In May 2012, the Guangdong Provincial People's Government, in the province's public lighting in the area in three years the popularity of LED lighting products, drive the LED industry to achieve the goal of the annual output value of 500 billion yuan more than in 2015. From the Guangdong Science and Technology Department data show that since 2010, the Guangdong fiscal invested 1.35 billion yuan of special funds, and guide enterprises and social investment of nearly 60 million of matching funds. The new round of boom to promote the use of LED lighting products is on the rise Li Xinghua, Science and Technology Department of Guangdong Province, said in a public speech in financial investment is strong support for a key innovation in the field of LED industry breakthrough. State subsidies for new energy to bring a new round of investment, the insiders this LED "investment" referred to as "herding" blind obedience to follow suit, the LED investment into return more unpredictable.

Second, large enterprises get state subsidies, crazy LED investment project to establish the industrial base, but its profits have been since they rely on government subsidies, its sustainability controversial. Sanan Optoelectronics listed companies third quarter profit of 667 million yuan, subsidies of up to 328 million yuan, accounting for nearly half. Coincidentally, the the BDO Runda this year's mid-term net profit of $ 1.2 billion in government subsidies of up to 1.5 billion, the country star power of this data is about 25% of the huge subsidies that business investment impulse than. Sanan Optoelectronics decided to raise funds not exceeding a total of 63 billion investment Anhui Sanan Optoelectronics Co., Ltd. Wuhu photoelectric industrialization (Phase II) project and Anhui Sanan Optoelectronics Co., Ltd. LED application products industrialization projects, the public offering of shares of matter has been reported to the China Securities Regulatory Commission, is still under consideration, however, excessive investment makes industry capacity oversupply, and focused on the middle and lower reaches of the lower technical barriers. LED industry enterprises, including listed companies, will be faced with the cruel process of survival of the fittest, the Guangdong Provincial Science and Technology Department Director Li Xinghua admits Guangdong LED industry still faces many challenges:

First, technological progress and the new generation of products speed quickly, a short time the country is difficult to establish a unified and standard LED products quality standard system, causing quite a mixed bag of market products, is not conducive to the control of product quality;

The second is the LED as a strategic emerging industries, and its development has its own characteristics and laws to promote the application of LED products a tremendous impact on the traditional lighting rely on existing business models are hard to break the traditional pattern of interests;

Third, the self-sufficiency rate of the core technology of LED upstream industry, high dependence on foreign industry is still in the low-end of the innovation chain and value chain. These issues are not resolved, will hinder the rapid and healthy development of the LED industry Recently, a news report said Yuba parents found the child's blind to bath baby always open to two months, the doctor diagnosed, the culprit is a Blu-ray in the Yuba this The news pushed the cusp of the LED light industry. Chinese the lighting designer Federation vice president Xu Qinghui said in an interview with this reporter yesterday, commonly used heating Yuba bulb is actually a high-powered incandescent.

Yuba child's blindness should be the larger causal relationship exists, of course, does not rule out this baby has potential congenital retinopathy Yuba important incentive for energy is its blindness. However, the incandescent light emission of energy in the blue region is very low, this energy should be sufficient to cause damage. Higher intensity of visible light and infrared penetrating eye, brought together in the same location of the retina, causing burns - just like our to converge sun with a magnifying glass can burning matches and subsequently, Xu Qinghui continue through the the microblogging network approach that, LED energy saving and environmental protection. But under the strict requirements of the benchmark system, each LED manufacturers in their efforts to improve the light efficiency (light source to electric convert light efficiency). There is a simple and low cost to improve light efficiency: thinning phosphor, so that the bottom of the Blu-ray extra some. Out "efficient" light unnatural, uncomfortable the visual feel pale, and glare. And not only is uncomfortable, too strong blue LED is also on the retina caused by photochemical hazards, and can even lead to retinitis, the harm is irreparable, severe blinding. In view of this, the international community and our Blu-ray hazards have strict limits, but who also can not guarantee the cheap LED products are flooding the market have to comply with the safety standards.

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