Investment overheating causing big "price war"
"I guess the beginning, but I guess the end", Wenzhou boss "running" phenomenon occurs, survival of SMEs has become the focus of discussion. On October 8, Shenzhen "Jun li" Chairman Mao Guojun missing. Led companies have as much time outgoing boss of the missing, suppliers demanding messages. LED industry various predictions of the collapse of the bubble is about to begin to make a great noise.
Two days ago, returned nearly a month in Shenzhen Mao Guojun pointed out during the exclusive interview with this reporter, Fundamentals of good multi-Li Jun is just some "details" not disposed of properly, seemingly "sudden and accidental", but has its inevitability.
Throughout LED domestic industries, in the context of technology not compliance, was the target of financial impact, over-investment resulting in a price war, how can this vicious cycle does not harm the entire LED industry?
On October 8, has annual sales of millions of Shenzhen Jun Li industry limited (hereinafter referred to as "Jun li") Chairman Mao Guojun and his wife was all CUI Li-hua and served in the company of relatives missing. Two days ago, return to Shenzhen though nearly a month but there is little in the face of media Mao Guojun accepted an exclusive interview with this reporter.
Blind expansion of planted consequences
Reporter the day before yesterday went to Shenzhen Bao An Shiyan Street Wen Tao of science and Technology Park building b, this six-storey high, the gross floor area of about 10,000 square metres of building has LED companies by another, but "Jun company" Word marks are clearly visible.
Dalang, Baoan, Shenzhen Bao long San Tsuen, Tai Lung company posted at the entrance of the shopping center is filled with all kinds of closure orders and recovery orders. Nearby residents reflect, the boss after the disappearance, where employees over unpaid wages, usury officers crouched defends all causes.
June State events to Semiconductor Lighting industry and businesses brought great shock, is generally considered the reasons associated with their blind expansion. Sources said that in 2010, Jun company planning in Sichuan shuangliu invested $ 400 million, construction LED package application-related projects. At the same time, June construction ready state there were several other bases. This is just more than 20 million of registered capital Jun Li, there is a clear loss of rationality.
After several twists, Mao Guojun national day after the last from Japan in Shenzhen, on October 14 and found the Shenzhen Semiconductor Lighting industry Development Association ("Association") to get help.
The morning of November 4, Jun Li held the first meeting of creditors, 35 participating creditors 33 voting of creditors agreed to set up in June to stand "creditor committee" to deal with debt and subsequent restructuring.
Reporters get the June State enterprise restructuring programme (discussion paper) show that restructuring primarily through "debt-equity swap" format.
Restructuring still faces Significant risks
Bao Enzhong Association Executive Deputy Secretary General told reporters, in June the debt of the State, guarantee company with more than 50 million Yuan, the supplier has more than 20 million Yuan, the partners have more than 10 million Yuan, add up to nearly $ 100 million, and assets of the company more than 50 million only, discount, less than $ 30 million, insolvency, reorganization is Jun Li's only way out.
But in the process of restructuring, differences in Mao Guojun and creditors are not small. "Businessmen and investors have nothing in common language," Mao Guojun directly stated that "I hope that the chances of grabbing LED season to resume work as soon as possible, every second counts".
Creditor has proposed reorganization is premised on audit June Li, thorough investigation into the money goes. Mao Guojun, although the practices of creditors "understandable", but such "protracted process" will result in the reorganization of June State lose the best timing.
Jun more State existing of assets in the, property most worth, has more than 20 million Yuan, device although assessment price higher, "but if took to market Shang processing also on value millions of, Jun more State if really of recombinant does not successfully, creditors can variable are 20% of claims on good has", Bao Enzhong said, from on November 4 up, creditors Committee of validity for 3 months, this segment time will decided Jun more State of births and deaths.
Jun Li's restructuring to significant risk, but Mao Guojun confidence seems to have recovered. In the interview, his experiences with Shi Yuzhu spur oneself on to achieve the "comeback," this month, I was seven or eight Han Wai, were various rumours attack, hundreds of millions worth far less than $ 10,000 into pockets, the bitter experience, I should be out in front, bear responsibility. "
Restructuring plan (draft)
To set up a Shell company, the Mao Guojun and their son's name on the transfer of shares to the company, Jun Li original creditor claims in accordance with the common shareholders. At the same time, Mao Guojun agree that may continue to serve as reorganization of the company's "Chief CEO" but perform a CEO and Chief financial officers of the creditor jointly by the Association for the output.
Disorder competition of industry environmental damage throughout the LED industry
Jun Li 2009 was "national high-tech enterprise" title, Mao Guojun I or "2011 Chinese electron profession ten big leader".
But is such a "Star" enterprises, just a few days because of cash flow problems came close to bankruptcy, LED enterprise vulnerability can be seen.
Analysis of senior engineers and LED industry Xiaofei Zhang, Director of the Institute for reporters pointed out that June legislative events are LED industry is a typical case of environment, external economic downturn and the only difficulties LED enterprises one of the reasons why. China LED industry in the context of technology does not target, but investment overheating situation occurred, resulting in a price war.
Murmurs of Mao Guojun also LED to the current industry environment, "now funds have LED this industry hit the road, although there is no big capital technology, but poaching talent poaching their hard training, the hard work technical enterprise to be a fatal blow."
Xiaofei Zhang said the focus on manufacturing of China, no one enterprise hidden down to do the core technology, "in Tackling the various orders," some companies at a low price in order to snatch the market, even in an inferior product to meet, this distrust LED to market products laid a great deal of risk, leading to LED a crisis of confidence. Such disorderly competition hurts China LED industry as a whole.
Industry problem is solved the secondary market are crazy fried
June legislative event has allowed financial institutions to input LED turned cautious, "used to take 10 million loan, after the incident that banks may only give you 5 million" according to one LED executives complained to reporters.
Professional analysis, due to the LED industry cost input is large, markets are not fully open, so a lot of small LED Enterprise capital chain are problematic, but shuffling may be had to face the topic.
However, in the secondary market, November 4 to five sectors of national development and Reform Commission issued jointly a phasing out incandescent roadmap, LED lighting plate related stocks also took the opportunity to "fire", one-week rise of 9.85% last week, Lehman Photoelectric units consecutive daily limit.
Xiaofei Zhang believes that in fact eliminate the incandescent to LED can form much of a good is still an uncertain factor, LED industry problems had not been substantially addressed.
"Many LED enterprises have some wind investment gold, LED industry risks so that they realize that out as soon as possible, otherwise it was never much of a chance", so the hype on the secondary market, who declined to be named in the industry is so analysis
