"Now, even our upstream phosphor materials are being owed money." When it comes to the LED industry triangle debt, Li Wei (pseudonym) hates it: "When talking about business, everyone said it was very refreshing, but the payment was on the goods, but Once the goods arrive at the customer, there is a bunch of reasons to stop."
According to reports, Li Wei is the general manager of a LED phosphor material company. The rapid development of the industry in the past few years has brought huge profits to the company. The company is still planning to go public in recent years. In the recent period, the problem of the industry's triangular debt has continued to spread, and Li Wei's company is already burning eyebrows.
“The equipment factory and the lighting factory are used to a long period of time, but our material factory used to collect money in a short period of time. We buy rare earth materials basically by cash. If the downstream payment is in arrears, we cannot recover the cash in time. The cash flow is unsustainable." Li Wei told reporters that phosphor material producers are greatly affected by the price of rare earths, and most cash transactions, if the downstream manufacturers have serious credits, equal to the company's interest-free support for customer working capital, but also bear the rise of rare earth. The risk of price. For small and medium-sized enterprises with weak financial strength, the capital chain is particularly prone to breakage.
"The triangular debt problem is a cancer of the industry." A LED industry boss said that the customer defaulted on the payment of the application manufacturer, the application manufacturer defaulted on the purchase price of the packaging factory, and the packaging manufacturer went to default the payment of the upstream chip and the auxiliary material factory. The industrial chain has become a risky debt chain.
In fact, the risk of this debt chain has been partially exposed. At the end of 2011, a number of LED display companies in South China, represented by Shenzhen Duo Duoli, collapsed due to financial breaks. In November this year, after the expiration of Haobo Optoelectronics' closing time, more than 20 million in arrears of suppliers have surfaced, and many listed companies in South China and East China have been unable to recover their purchases.
At present, the companies involved in the LED industry are numerous, and the liabilities of the industrial chain are spreading. From the perspective of listed companies with public information, as of the third quarter of this year, the total balance of accounts receivable of 21 listed companies with LED as the main industry totaled 5.519 billion yuan, and the balance of accounts payable reached 3.383 billion yuan. The total amount of accounts has accounted for 89.13% of the total revenue in the first three quarters.
Take the LED chip leader Sanan Optoelectronics (600703) as an example, the company's accounts receivable increased from 352 million yuan at the beginning of the year to 707 million yuan at the end of the third quarter, an increase of 100.92%, and notes receivable increased by 591.39% compared with the beginning of the year. . The company explained that the significant increase in bills receivable was mainly due to the settlement of sales receipts.
It is understood that the current domestic LED chip companies generally have an account period of five or six months, and accounts receivable and revenues are close to 1:1, but some listed companies have made some accounts receivable into commercial papers, so The number of accounts receivable seen in the financial report is lower.
Companies with poor capital are deeply credited, and they are well aware of the supply mentality of suppliers. “Many downstream manufacturers have no cash payment to suppliers. Suppliers also have the means, and if they do not continue to supply, it means inventory backlog and book loss.†The head of a domestic chip company reluctantly said.
Industry insiders pointed out that the current tight financial situation faced by LED companies is mainly due to the difficulty in recovering goods. From raw materials to intermediate products to terminal consumer products, any delay in any link in the industrial chain will have an impact. Some small and medium-sized enterprises, once the capital chain is tight, under the annual payment of goods or the upstream supplier dunning, it is likely that there will be an increase in usury loans, pawn property, business owners running and even chain closure.
Behind the triangle debt of the LED industry is the result of overcapacity in all links of the industrial chain. Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, said: "The impact of overcapacity on the market will become more apparent in the next six months."
According to reports, Li Wei is the general manager of a LED phosphor material company. The rapid development of the industry in the past few years has brought huge profits to the company. The company is still planning to go public in recent years. In the recent period, the problem of the industry's triangular debt has continued to spread, and Li Wei's company is already burning eyebrows.
“The equipment factory and the lighting factory are used to a long period of time, but our material factory used to collect money in a short period of time. We buy rare earth materials basically by cash. If the downstream payment is in arrears, we cannot recover the cash in time. The cash flow is unsustainable." Li Wei told reporters that phosphor material producers are greatly affected by the price of rare earths, and most cash transactions, if the downstream manufacturers have serious credits, equal to the company's interest-free support for customer working capital, but also bear the rise of rare earth. The risk of price. For small and medium-sized enterprises with weak financial strength, the capital chain is particularly prone to breakage.
"The triangular debt problem is a cancer of the industry." A LED industry boss said that the customer defaulted on the payment of the application manufacturer, the application manufacturer defaulted on the purchase price of the packaging factory, and the packaging manufacturer went to default the payment of the upstream chip and the auxiliary material factory. The industrial chain has become a risky debt chain.
In fact, the risk of this debt chain has been partially exposed. At the end of 2011, a number of LED display companies in South China, represented by Shenzhen Duo Duoli, collapsed due to financial breaks. In November this year, after the expiration of Haobo Optoelectronics' closing time, more than 20 million in arrears of suppliers have surfaced, and many listed companies in South China and East China have been unable to recover their purchases.
At present, the companies involved in the LED industry are numerous, and the liabilities of the industrial chain are spreading. From the perspective of listed companies with public information, as of the third quarter of this year, the total balance of accounts receivable of 21 listed companies with LED as the main industry totaled 5.519 billion yuan, and the balance of accounts payable reached 3.383 billion yuan. The total amount of accounts has accounted for 89.13% of the total revenue in the first three quarters.
Take the LED chip leader Sanan Optoelectronics (600703) as an example, the company's accounts receivable increased from 352 million yuan at the beginning of the year to 707 million yuan at the end of the third quarter, an increase of 100.92%, and notes receivable increased by 591.39% compared with the beginning of the year. . The company explained that the significant increase in bills receivable was mainly due to the settlement of sales receipts.
It is understood that the current domestic LED chip companies generally have an account period of five or six months, and accounts receivable and revenues are close to 1:1, but some listed companies have made some accounts receivable into commercial papers, so The number of accounts receivable seen in the financial report is lower.
Companies with poor capital are deeply credited, and they are well aware of the supply mentality of suppliers. “Many downstream manufacturers have no cash payment to suppliers. Suppliers also have the means, and if they do not continue to supply, it means inventory backlog and book loss.†The head of a domestic chip company reluctantly said.
Industry insiders pointed out that the current tight financial situation faced by LED companies is mainly due to the difficulty in recovering goods. From raw materials to intermediate products to terminal consumer products, any delay in any link in the industrial chain will have an impact. Some small and medium-sized enterprises, once the capital chain is tight, under the annual payment of goods or the upstream supplier dunning, it is likely that there will be an increase in usury loans, pawn property, business owners running and even chain closure.
Behind the triangle debt of the LED industry is the result of overcapacity in all links of the industrial chain. Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, said: "The impact of overcapacity on the market will become more apparent in the next six months."
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