GLII exclusively released 2010 China Top Ten Frustrated LED Companies

According to the statistics of the High- tech LED Industry Research Institute (GLII), the total output value of China's LED industry in 2010 reached RMB 1,260 billion, a year-on-year increase of 50%. The total output value of LED epitaxial chips is 4 billion yuan, up 100% year-on-year; the total output value of LED packaging is 27 billion yuan, up 35% year-on-year; LED application is 95 billion yuan, up 58% year-on-year.

In 2010, LED upstream investment was active, and the Chinese LED market's investment demand for MOCVD was crazy. Whether it is the government's large cash subsidies, or the return of the sea and the flow of talents, China's domestic LED technology is moving forward, and we are deeply impressed.

It’s such a year, but unfortunately, not everyone’s days are so good.

When we decided to exclusively launch the annual list of frustrated LED companies in the industry, we talked more about the mistakes or mistakes made by the helm of these companies in the increasingly complex Chinese market competition environment and even exited the LED industry. For example, strategic conservativeness and radicalism, the traditional lighting leader of the past lost the opportunity to lead the new light source industry again, or the first warriors who eat crabs are admirable, but gradually lose their own advantages. . Other companies have encountered short-term difficulties caused by similar technologies, costs, and pressure from the market in the process of transforming LEDs.

NVC Lighting

Since its establishment in late 1998, NVC Lighting has maintained an annual growth rate of 50%. Sales revenue for the past four fiscal years ended December 31, 2010 recorded a compound annual growth rate of 59.3%. However, behind the glamorous figures, it is the revenue share of LED lighting revenue in 2010 less than 2 percentage points.

In 2010, NVC went on the third sprint and finally got what it wanted. However, among the funds raised of HK$1.53 billion, NVC only arranged HK$160 million for the research and development of LEDs, HIDs and other products. In the global roadshow before NVC's listing, investors are most concerned about NVC's LED business. Obviously, for a company whose traditional lighting products can maintain a gross margin of around 30%, LED is still a standard. The business of the "Future" label.

Although NVC Lighting has always claimed that the application of LED lighting technology has been developed as early as 5 years ago, and the LED project team was established in the Shanghai Light Source Electric R&D Center, it was not until 2010 that it launched the first series of new LED light sources and lamps. product.

In 2010, domestic listed companies frantically invested in LED upstream, and while everyone competed for the upstream resources of future LED light sources, NVC chose another way. In March 2011, NVC and Cree reached a strategic cooperation agreement, in a certain sense, abandoned the plan to enter the upstream in the short term.

BYD Lighting

As another new industry after BYD's battery, IT and automobile, another application field of BYD New Energy, the LED industry should bear another driving force to promote the overall development of BYD. From the start of the LED project in BYD in 2003 to the establishment of the LED application product research and development team in 2008, when the high-tech LED industry research institute investigated the BYD base in 2009, the 400-person engineering team was luxurious in the domestic LED industry.

However, in 2010, BYD's automobile business has experienced a decline, and it was once in a crisis such as layoffs and dealers' withdrawal. At present, the automobile business and the battery and electronic products foundry business each account for half of BYD's revenue. Although BYD Chairman Wang Chuanfu has repeatedly stressed that BYD is not in the traditional car and mobile phone business, it is based on the profit and technology accumulation of these businesses. The future of new energy products market.

However, in the company's annual report, electric vehicles, energy storage power stations, LED lighting and solar power generation products are still only small fragments. Even in the report, there is no separate category and performance for these businesses.

Foshan Lighting

Foshan Lighting has always relied on strict cost control and refined management, and is known as a cash cow in the domestic listed companies of traditional lighting. In 2009, for Foshan Lighting, the four-year "marriage" with Osram did not wait for the injection of LED technology from major shareholders, but it ushered in its more aggressive competition. However, since the two have common interests in many projects, the possibility of separation is not yet available. At the same time, after the pursuit of the industry's rising stars, the LED road of Foshan Lighting will not be flat.

Sure enough, in 2010, Foshan Lighting was deeply mired in the "inside trading" storm, and the chairman and the secretary-general were all suspected of insider trading. In addition, this kind of competition and cooperation with the major shareholder Osram will undoubtedly slow down the pace of the Buddha's entry into the LED.

From 2008, Zhong Xincai revealed for the first time at the general meeting of shareholders to seek LED technology partners overseas. In the past two years, Fo Zhao has successively contacted some LED epitaxial and chip manufacturers in China, Europe, America, Japan and South Korea, and finally reached a willingness to cooperate with Puri in the United States in 2010. According to the official statement of the Buddha, the cooperation between the two sides is only the result of intentionality, and there is still uncertainty.

Lianchuang Optoelectronics

As the first in Shanghai and Shenzhen stock market, Lianchuang Optoelectronics, named after “Photoelectricity”, acquired the LED epitaxial wafer production line of Jiangnan Material Factory as early as 2011, becoming the only large-scale production of ordinary red, green and infrared LED epitaxial wafers in China. Chip company. However, the holding background of state-owned assets is always a double-edged sword for enterprises.

Nanchang Xinlei and Xiamen Hualian, jointly owned by Lianchuang Optoelectronics, have been developing in the simultaneous mode of infrared and visible light LEDs in recent years. In 2010, Nanchang Xinlei high-power infrared monitoring device LED epitaxial material and chip industrialization project was approved, and in the blue-green optical chip for lighting applications, it has been in a stagnant state. Correspondingly, in the company's annual financial report, Lianchuang Optoelectronics did not list the LED business revenue separately, so we saw the Lianchuang Optoelectronics 2010 semi-annual report showing the gross profit margin of its optoelectronic devices and application products. It is only 21.04%, which is only 50% of the gross profit margin of Xiamen Sanan Optoelectronics and Ganzhao Optoelectronics chips.

Since 2009, the controlling shareholder Jiangxi Electronics Group has been looking for buyers due to the large loss of entrusted wealth management business in recent years. It hopes to obtain follow-up development momentum through the transfer of shell resources of listed companies, and at the same time the group is forced to pass the cooperation. Change the current lack of technical content and gross profit margin of Lianchuang Optoelectronics.

From EF International, Hong Kong Sun Hung Kai and a real estate developer in Shanghai, in the past few years, Jiangxi Electronics Group has been able to find a way out for Lianchuang Optoelectronics. In November 2010, Jiangxi Provincial State-owned Assets Supervision and Administration Commission and the merchants jointly signed an equity transfer contract, and the company will indirectly hold 20.41% of the shares of Lianchuang Optoelectronics through Jiangxi Electronics, becoming the indirect controlling shareholder of the company.

The joint venture of the company only used less than 1 billion yuan to acquire the entire share capital of Jiangxi Electronics, and the market value of Lianchuang Optoelectronics Co., Ltd. owned by the company on the acquisition day exceeded 1 billion yuan. Although the Jiangxi State-owned Assets Supervision and Administration Commission (SASAC) has issued almost strict conditions for equity transfer, such as the investment of more than 1 billion yuan in Jiangxi's electronic LED, cable and special communication projects in the first three years, the sales revenue of Jiangxi Electronics has reached more than 10 billion yuan in five years. Prior to this, the joint business scope of the company was involved in industrial investment, real estate development and operation, domestic trade, etc., and there was almost no correlation with the related industries mentioned by Jiangxi Electronics.

Fangda Guoke

This is the first enterprise in China to mass produce epitaxial wafers and chips for LED lighting. Fangda Guoke has already developed China's first high-power blue LED chip as early as 2007. However, in September 2007, Fangda Group, the parent company of Shenzhen, chose to jointly establish Shenyang Fangda Semiconductor Lighting Co., Ltd. with Shenyang State-owned Assets Management Co., Ltd. Fangda Guoke also moved from China's special economic zone to the old industrial base in Northeast China. The semiconductor lighting industry park, which had a total investment of more than 2 billion yuan at that time, was a big deal.

However, according to the plan, the epitaxial chip production line should be completed and put into production before the end of 2008, but it was in a dilemma due to the global financial crisis.

At this time, the Chinese government launched a 4 trillion domestic demand plan, which led to the launch of a number of major infrastructure projects. Fangda Group's other business, the subway screen door, has ushered in unprecedented opportunities. According to the 2010 annual financial report released by Fangda Group, the revenue of the company's subway screen doors and traffic track products accounted for nearly 95%, and the LED business was not included in the report.

At the same time, in the 2010 fundraising plan of Fangda Group, energy-saving curtain walls and subway screen doors became the protagonists. In the Group's 2011 development plan, LED packaging products replaced LED epitaxial chips as a key development project. The combination of LED engineering application and curtain wall industry strategy has become the future development direction of the Group. Obviously, Fangda Guoke has already parted ways with LED upstream.

Dalian Luming

In September 2003, Dalian Luming Group, which was established only 12 years ago and had a total staff of only 350 employees, acquired the AXT Optoelectronics Company, which was the second in the US and the fourth in the world in terms of LED epitaxial chip manufacturing technology. Taiwan's small-capacity MOCVD and related patent technology, and the establishment of Dalian Lumei and the United States Lumei two chip companies. In 2005, Dalian Luming and the United States Lumei jointly invested to establish Dalian Meiming Epitaxial Film Technology Co., Ltd., and achieved mass production of epitaxial wafers in the shortest time in China. According to Xiao Zhiguo, the chairman of Luming at the time: "The acquisition of AXT Optoelectronics has allowed Lu Ming to shorten the technical climb time by at least 10 years."

However, Dalian Luming still did not escape the frustration of overseas mergers and acquisitions of domestic enterprises. Since 2006, Liu Xiao, the former president of AXT's optoelectronics division, left AXT to join Intematix. After this, the former American Lumei CTO Yan Chunhui had formed a Hong Kong Yaweilang Optoelectronics in 2008 with the current chairman of Yaweilang Optoelectronics Ni Yaoqiang because of the divergence of cooperation with Dalian Luming. Joined Yan Chunhui and Yaweilang and 70% of the original AXT Optoelectronics R&D team, all technical patents related to LED and intellectual property.

Before 2008, through the LED World Cup image project of the World Cup in Germany and the Beijing Olympic Games, Dalian Luming was infinitely beautiful. However, since 2009, faced with the rising temperature of LED upstream investment at home and abroad, Dalian Luming has not done much, and the MOCVD number is also maintained at an average annual investment schedule. During the period, the investment in 2.15 billion yuan to build the Chongqing Semiconductor Industrial Park LED chip project and the total investment of 5 billion yuan in Erdos LED new light source and display products project did not have any substantial progress in 2010. The former Dalian Lumei general manager Sun Zhijiang joined the Suzhou Jucan Optoelectronics with team lightning.

Qinshang Optoelectronics

In 2009, the Ministry of Science and Technology launched the “Ten Cities and Ten Thousand Miles” program, which spurred investors to stir up their nerves. In the past three years, Qinshang Optoelectronics has attracted nearly 600 million yuan in venture capital investment. As an export enterprise that produces low value-added outdoor decorative lights, it has transformed LED lighting R&D and production. It is obvious that Qinshang Optoelectronics has not adapted itself to its role change. It is most appropriate to borrow a quote from Li Xuliang, chairman of Qinshang Optoelectronics: "The first mover will easily become a martyr." Then the LED dead lights, light decay, and the replacement of high-pressure sodium lamps on the market were even worse. It was obvious that the LED street lights cut into the terminal application market was forced to the cusp.

At the end of 2009, the “Ten Cities and Ten Years Old Research Report” of the High-tech LED Industry Research Institute once again sounded the alarm for hundreds of LED street lamp companies nationwide. A total of 222,000 LED street lights were installed in 21 pilot cities in the “10-Year” program in 2009; the LED street light production line has a loss rate of 70%. The first transformation of Qinshang Optoelectronics declared a failure in a certain sense, followed by the mess left over from the previous investment in order to get orders for street lamps.

In 2010, due to the recent three consecutive years of performance far less than expected growth, losing the gambling agreement, the company's major shareholders refused cash compensation, had to enter into a share compensation agreement with venture capital institutions.

Subsequently, Qinshang Optoelectronics Lightning launched the 'A Plan', from street lights to fully promote LED indoor lighting products, and the promotional slogan was changed to "LED lighting experts."

Sanda Group

On December 27, 2010, Shenzhen Great Wall Development Co., Ltd., a subsidiary of China Electronic Information Group CEC, jointly signed an agreement with Taiwan Jingdian and Yiguanjing to invest 490 million US dollars in the development of Jingguang Lighting (Xiamen) Co., Ltd. The project is involved in the LED industry chain, and the LED backlight module will provide supporting services for the TV set and display subsidiaries of the Great Wall Department.

However, as early as March 2010, many domestic mainstream media frequently reported the rumors that Shen Sangda will take over the CEC billion LED project. Subsequently, Sanda issued a clarification announcement stating that the controlling shareholder and the actual controller of the company do not currently have a large-scale investment in the company's LED industry, and there is no major restructuring, acquisition, and issuance of shares in the company, and promises not to be within three months. Plan the same thing.

At the same time, the company announced that the company's LED products are generally in the basic stage, and the sales revenue of LED products in 2009 was only 2.59 million yuan. Recently, the company has cooperated with GE Lighting and other units on the production and sales of LED lighting products. It mainly produces LED lighting products for GE lighting processing and sales in some domestic markets. Whether it can make progress in the future depends on specific orders and other factors.

On the one hand, there is the Great Wall Department, which has an upstream LCD panel, and the downstream whole machine uses a one-stop industrial chain. On the other hand, it is the unclear Sangda Electronics in the future LED street lamp market. Although for CEC, the palm of the hand is meat, the CEC chose the former.

Zhen Mingli

In 2009, the market for traditional LED lighting products, such as Christmas lights, which accounted for half of the performance, began to shrink. The market for the high-profile commercial lighting market was not up to the climax, and a series of problems made the top management feel pressured. At the same time, the product price is high and the after-sales service is not in place. It has also become the main cause of the criticism of many distributors in the domestic market in recent years.

In the development process of the previous ten years, the staff of Heshan Zhenmingli Base has risen from more than 500 people to more than 20,000 people during the peak period. Since then, the company's rapid expansion, the importance of management and other supporting software has been highlighted, and some problems have also been exposed. As a Taiwan-funded enterprise, Taiwanese culture and mainland culture have failed to integrate and unite in the enterprise. It has once led to a weakening of the cohesiveness of employees.

For Chairman Fan Bangyang, how to quickly transform LED has become a top priority for getting rid of low value-added business and brand image. In 2010, Zhen Mingli laid out the upstream epitaxial chip. Although the proportion of LED revenue in the whole year was mentioned to 20%, the increase in costs, especially the labor shortage, swallowed some of the company's profits. As of the end of 2010, Zhen Mingli announced its annual performance data. Although the overall revenue increased by 33.4% year-on-year to HK$1,482 million, the net profit decreased by 31.6% year-on-year to HK$107 million. The company's performance was significantly lower than expected.

In the long run, the LED industry has no need to question the market space and capacity. However, the timing of the terminal demand explosion is still uncertain. Therefore, the cost pressure of the company's entire industry chain model will continue to be released.

Century Crystal Source

In June 2005, as a major project of Shenzhen National Semiconductor Lighting Engineering Industrialization Base, the four core technology projects and three supporting projects of Century Jingyuan Technology Co., Ltd. started construction at the same time. According to the plan, the initial investment of the project is 3 billion yuan. It is estimated that the investment will reach 20 billion yuan within 3 to 5 years, and the output value will exceed 100 billion yuan. In the following four years, Century Jingyuan is infinitely beautiful in China. From the State Council, the National Development and Reform Commission, to the leaders of various provinces and cities, and many high-level financial institutions have come to the Shenzhen base to visit and inspect, and the Shenzhen Municipal Government is even more Caring for it, it is clear that the main investor of Century Jingyuan, the chairman of the Hong Kong New Henderson Group and the member of the National Committee of the Chinese People's Political Consultative Conference, Gao Jingde contributed. In this investment team, there are also two members of the National Committee of the Chinese People's Political Consultative Conference and three members of the Shenzhen CPPCC.

However, as the projects are put into production, the problems are coming one after another. First, the Boda case in Taiwan was involved. Immediately after the company began to copy the Shenzhen model across the country, it planted huge investment and planned output value, but the LED products of the Shenzhen base never showed up. Until the Shenzhen High-Tech Fair in 2009, Century Jingyuan sent the Shenzhen Municipal Government with the world's first large-screen full-HD three-dimensional laser TV. It was also during this year that the company owed a large amount of equipment to suppliers when it was in arrears, and the employees’ wages were delayed and the use of various names to defraud financial institutions’ loans continued to be seen in the media. During the period, members of the core technical team of several departments of the company began to leave and seek another job.

On February 23, 2010, the company's board of directors announced that it would adjust the leadership team and announced that Mr. Ma Hong was the president of Century Jingyuan Technology Co., Ltd. This is the second time that Century Jingyuan has adjusted the company's senior staff in four years. At the same time, in stark contrast to 2009, throughout 2010, Century Jingyuan Shenzhen base seems to have become extraordinarily calm, and frequent provincial leaders have not visited. Even more strange is that from the time of production to the present, there is no news about the related products of LED epitaxial chips on the company's website.

According to the original planning of Shenzhen Compound Semiconductor Industry Base, by the first half of 2010, 80 white LED and optical storage LD application enterprises will be completed. By the end of 2012, the industrial base will complete the overall development and construction. According to the forecast of relevant institutions, as of the end of 2010, the city's LED output value does not exceed 40 billion yuan. Obviously, the goal of Century Grid's planned 3-5 year output value exceeding 100 billion in the 2005 project has become an impossible task. What is even more surprising is that in 2010, the output value of high-tech products in Shenzhen exceeded 1 trillion yuan for the first time, reaching 101.7 billion yuan. If according to the planning of Century Jingyuan, the output value of its individual projects will account for all the high-tech output value of Shenzhen. 1/10.