2x4 Led Ceiling Light Panel, 2x4 Led Flat Panel, Flat Panel Led Lights 2x4, Led Flat Panel 2x4 Shenzhen Isource lighting Co., Ltd , https://www.isourceled.com
The reporter visited the enterprise and learned that due to factors such as falling profits and triangular debts, some LED display companies in Dongguan began to seek transformation, and some gradually cut into the lighting field, while others made efforts to media advertising links downstream of the industry chain. Compared with Shenzhen, the number of LED display companies in Dongguan is not much, at around dozens.
Since the beginning of this year, several large-scale display companies in Shenzhen have closed down. There are still some problems in the Dongguan display industry, but there have been no closed enterprises. Some powerful companies are already stepping up research and development in order to avoid risks.
Triangular debt to private lending
Since 2013, Luo Ge, the general manager of Xinghuang Electronic Technology Co., Ltd., has been busy. In addition to seeking marketing channels for new products developed by his company, the most difficult thing for him is the financial problem.
A few years ago, Xinghuang Electronics focused on the development of two-sided LED display screens. This year, the products began to be marketed on a large scale, and the lack of funds was highlighted.
Closely linked to the corporate funding problem is the triangular debt problem. Luo Ge said that the triangular debt problem is more common in the LED industry, especially in the display sector. "This year, due to the overall market is not optimistic, the triangular debt is intensifying in the industry. The operating costs of LED display companies are generally Relatively high, the triangular debt problem has intensified the difficulty of capital turnover."
Dongguan Yongxing Electronic Technology Co., Ltd. has also been involved in the LED display business. The person in charge of the company said that the downstream customers facing LED display companies are mainly media advertising companies. When media advertising companies do engineering projects, they usually sign agreements with enterprises. Instalments are paid according to the progress of the project; upstream suppliers of LED display companies generally require full payment. The display company is sandwiched in the middle and bears the burden of the triangle.
During this time, Luo Ge was trying every day to find ways to raise funds. He hopes to wait for help from financial institutions such as banks. “There are also companies that choose private lending and private lending, and the cost is very high,†he added.
Price war dilution industry profit
Another problem that has caused headaches for LED display companies is the industry's increasingly diluted profits. In the LED industry chain, the display screen is a relatively low-end link, with low technical thresholds and fierce competition.
Luo Ge recalled that five or six years ago, the gross profit of the LED display industry remained at around 50%, and the net profit was over 30%. However, with the sharp increase in the number of enterprises in recent years, the gross profit of the industry has been less than 30%, and the net profit. Less than 10%. "Sometimes in order to compete for a project, 5% of the profits are also rushed to do." He said helplessly. There have been market research institutes that have done statistics: there are more than 40 companies with a display screen of more than 100 million yuan, and companies with a net profit of 10% are rare.
Mr. Xiao, deputy general manager of a LED manufacturing company in Dongguan, said that the current homogenization competition in the LED display industry is very serious. The price of customers is very common. Some even require enterprises to do display screens for free, and then pay for advertising revenue.
It is reported that LED display manufacturers and advertising media companies often cooperate with LED manufacturers to invest in the screen, and then use advertising revenue to offset the payment or to divide the advertising. This kind of screen-setting method seems to be profitable, but in reality, the cost risk falls on the LED display company. If the screen fails to bring profits to the advertising media company, the LED display company will lose money.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. ) 
Difficult triangular debt and price wars Dongguan LED display industry mixed
In the first half of 2013, for the LED display industry in Dongguan, it can be said that it is mixed. On the one hand, benefiting from the recovery of the LED market, LED display is continuing to grow; on the other hand, due to the low technical threshold, the price war has repeatedly diluted the industry profits, and the spread of the triangular debt has also dragged down the performance of the company.