Today is December 29, 2014, and there are only two days left in 2014. Looking back at the LED industry this year, it can be said that there are both surprises and pains. This year, price wars, channel wars, patent wars and other wars have occurred one after another. Competition in the LED industry has intensified, and companies have taken measures to deal with it. In this reshuffle, some LED companies have escaped from the dangerous atmosphere without any danger, while some companies have gone bankrupt and closed down. The editor below will take stock of the more representative bankruptcy cases this year.
Shenzhen Maxtian Electronics
On April 17, a picture of Shenzhen Maxtian Electronics employees defending their rights was circulated in major QQ groups in the LED display industry. In the picture, several Maxtian employees held banners and blocked roads in the street to protest. The three banners read "The unscrupulous boss returned my hard-earned money," "Maxtian Electronics returned my hard-earned money," and "The legal person emptied the warehouse privately." In the lower right corner of the picture, there is a text: "Shenzhen Maxtian Electronics Co., Ltd. (Xiao Chuming) has stopped production. Relevant people in the industry should be informed to prevent being deceived."
It is understood that the main reason why Maxtian Electronics ceased operations was because the shareholders had different development concepts and split Maxtian into two new companies. Another company is "Sixiang Jiahua", and its business is still LED display screens. According to Maxtian’s official website, the company was established in July 2010, officially registered in January 2012, and has been in business for less than five years. Behind every failed business is a group of employees and suppliers who suffered.
Dongguan Yongxing Electronics
On September 15, it was determined that Yi Xingshang, the owner of Dongguan Yongxing Electronic Technology Co., Ltd., and his wife Lu Meilian had run away. The police took control of the company, while the labor bureau and lawyers intervened in the investigation. It is understood that Yongxing Electronics is definitely running away with bad debts this time. The boss of Yongxing Electronics began to visit the U.S. market to announce that he was negotiating for plant growth lamp business, and then the family of four began to go through the immigration procedures. This year, Yongxing Electronics received a total of 4.16 million yuan in project funds from Chengdu on August 26, and then immediately transferred 3.5 million yuan of it to HSBC Bank in Hong Kong. It flew out of the country on August 27 and 28, and arrived in Hong Kong on September 1. On September 5, Lumellen also took a plane to Hong Kong and then flew to Los Angeles.
It is understood that Yongxing owes about 8 million yuan in payments to suppliers, more than 20 million yuan to three banks, and nearly 6 million yuan in private loan shark loans, with a total debt of more than 30 million yuan. Before leaving, Lu Meilian also borrowed 700,000 yuan from five sisters, which was a private loan, and subsequently lost contact. At present, the company has been controlled by the police. It seems that the only way to go is to go bankrupt!
GTAT
On October 6, GTAT, an American sapphire raw material supplier and smelting system manufacturer, announced that the company, together with its specific direct and indirect subsidiaries, had filed for voluntary bankruptcy. After the news was exposed, the stock price instantly fell from US$11 to US$0.8, a plunge of 92.76%.
It is reported that GTAT’s bankruptcy was related to Apple’s supply contract, which put tremendous pressure and burden on GTAT. After the bankruptcy, GTAT asked the court to reject and terminate the supply contract with Apple, and requested the court’s permission to close the sapphire manufacturing plant in Arizona. In addition, GTAT also received approval from the court to file further claims against Apple in the future, but in the end GTAT considered suing to challenge the high cost and reached a settlement with Apple. However, GTAT had to repay Apple's US$439 million in debt. Finally, GTAT stated that it would repay the remaining debt owed to Apple by selling sapphire furnaces to Apple.
Legend of Phoenix
On October 22, it was reported that the owner of Zhongshan Hualiang Lighting (Fengguang Legend) lost contact with his relatives. Later, it was revealed that the owner of Phoenix Legend, Xiao Jin, his wife Yan Rong and related relatives could not be contacted. Suppliers from all over the country came in an endless stream to collect money. In addition, suppliers, creditors and employees competed for the company's goods and equipment. At present, the machines and office equipment in Fengguang Legend factory have been moved away, and most of the employees have dispersed. Its suppliers said: "Fengguang Legend has weak R&D technology, poor market grasp, and often deceives suppliers. The company's collapse is inevitable." According to local police confirmation at the time, the owner and couple of Fengguan Legend have still not been able to be contacted, and the company has little chance of resuming production.
It is understood that Fengguang Enterprise currently owes more than 20 million yuan in payments to upstream companies, more than 30 million yuan in bank loans, more than 5 million yuan in undelivered payments from agents, and more than 2 million yuan in employee wages (the amount is still being calculated), leaving only rented factories and a bunch of outdated products.
Zhongshan Anlix
On October 28, Hong Kong Anlish Electrical Co., Ltd.’s mainland production base Zhongshan Anlish closed its doors. According to Zhongshan Alex's announcement, the reason for its closure was mainly due to operating difficulties.
According to the information reviewed, Zhongshan Anlish Electrical Manufacturing Co., Ltd. is a production base invested by Hong Kong Anlish Electric Co., Ltd. in the Mainland. Founded in September 2008, it mainly produces a variety of products in five categories: small household appliances, lighting products, automotive accessories, alarms, and health products that meet standards.
Metz
On November 19, the famous German flash manufacturer Metz announced that it had filed for bankruptcy. Metz was originally a television manufacturer, but is better known for its photography flash products. At that time, Metz's production and after-sales services remained at normal levels. However, 550 to 650 full-time employees and 100 part-time employees will be affected.
stated that all businesses will operate as usual at the beginning of the bankruptcy proceedings, and all products and services will also be provided as usual. A company files for bankruptcy proceedings in order to adjust and restart the company. Otherwise, Metz did not disclose other relevant details.
Shenzhen Lihofeng Technology
Some netizens broke the news that the boss of Shenzhen Lihofeng Technology Co., Ltd. was seriously behind on wages and abandoned the company and ran away. At present, Lihefeng is unable to contact Zhong Gang, the legal representative of Lihefeng. At the same time, it emerged that Lihefeng owed more than 10 million yuan in payments to suppliers and more than 390,000 yuan in arrears to employees for three months. It is understood that Zhong Gang became the legal representative of Lihefeng in 2013 and served as general manager and executive director. Regarding the case of missing contact with the legal representative of Lihefeng, the public security organs have accepted the case and opened the case for investigation.
On November 28, at the arbitration tribunal of the Shenzhen Baoan District Labor Arbitration Committee, the relevant person in charge of Lihefeng was not present. Relevant staff of the Shenzhen Baoan District Labor Arbitration Commission stated that the arbitration has been handled in accordance with the absence of the employer, and an award has been issued to both parties. Employees seeking wages can apply to the court for enforcement in accordance with the law. In addition, within the specified period, the relevant person in charge of Lihefeng did not contact the Langxin Community Workstation to deal with the issue of wage arrears, so it was regarded as "escape".
Juliang Optoelectronics
On December 6, the boss of Guangzhou Juliang Optoelectronics was reported to have lost contact, and hundreds of suppliers surrounded the factory door. Currently, the production line of Juliang Optoelectronics is stopped. Hundreds of suppliers and about 300 employees reported losing contact with their bosses. It is reported that suppliers are owed 200 million yuan in payment arrears, and employees are owed 3 million yuan in wages.
It is understood that Juliang Optoelectronics’ production equipment and all computers’ accounts receivable information were swept away, all the information was gone, and the computers were also moved away. Now the government is taking over the company and is responsible for the custody of the property. Deng Kunyao, assistant to the chairman of Juliang Optoelectronics, said, "We are discussing with the company's employees how to solve the salary issue. I don't know much about other situations." It seems unlikely that Juliang will resume production.
Zhongshan Xilin Lighting
On October 24, many industry insiders broke the news on WeChat Moments, Weibo and other platforms that Henglan Xilin Lighting was running away.
It is understood that Zhongshan Guzhen Xilin Lighting Factory is relatively small in scale. The company is located on 5th Floor, No. 271, Haizhou Dong'an North Road, Guzhen, Zhongshan City, with convenient transportation. It was registered and established in Zhongshan Industrial and Commercial Bureau on July 30, 2014. The factory director is Zhu Chaolin, and the registered capital of the factory is unknown. It claims to have a strong technical research and development team and has joined forces with domestic universities and colleges to develop products with independent intellectual property rights.
Zhongshan Qike Lighting
According to the Weibo news of Zhongshan Zhongxiang Instrument Co., Ltd., the building of Zhongshan Qike Lighting was empty at noon today on October 29th and evaporated overnight! It is reported that the boss of Zhongshan Qike Lighting has already fled, leaving all the employees at the company at a loss.
It is understood that Zhongshan Qike Lighting Co., Ltd. was established in July 2003. It is a high-tech enterprise specializing in R&D, production and sales of fluorescent lamps and LED lighting. It has two major engineering-specific lighting companies, Qimeng and Qilang. The main products are LED industrial and mining lamps, LED street lamps and high-power lighting series.
Summary:
The invasion of "escape gates" and "bankruptcy waves" not only caused disaster to some LED companies, but also sounded the alarm for the entire LED industry. Poor product quality, broken capital chains, blindly low prices, lack of core technology... these various reasons have become the driving force behind the collapse of enterprises.
From the current point of view, the market pattern of enterprises engaged in the LED industry seems to be becoming increasingly clear. On one side, industry leading companies continue to expand in a favorable policy environment, and some "laymen" who are optimistic about the future prospects of LED are vying to enter the industry to get a share of the pie; on the other side, increasingly unskilled small businesses are forced to squeeze out of the market due to overcapacity in the entire industry, which leads to a break in the capital chain. In the future, market share will increasingly be concentrated on companies with brands, channels, and innovations. The industry will face a reshuffle, and a large number of small and medium-sized enterprises may withdraw from the competition.
ANNA