LED companies get together behind the market and the future

Since 2011, China’s LED companies have accelerated their access to the capital market. In addition to already listed companies, there are hundreds of LED companies have completed or are undergoing a share reform, in order to introduce investors to quickly achieve the listing.

Listing is a strong testimony to the company's management level, development prospects and profitability. It is also through the use of the capital market that SMEs enrich the financing channels and enhance the credibility of financing; standardize corporate operations, attract outstanding talents; standardize governance structure, improve management system, and improve operations. Efficiency; prove the strength of the enterprise, enhance the corporate image, discover the value of the stock, increase its liquidity, and enable the company to grow bigger and stronger steadily, and to achieve an important weapon of leap-forward development.

LED companies queuing up for listing, on the one hand, explain the rapid growth of the LED industry, increase the financing channels, and be optimistic about the future market. At the same time, it also reflects the problem of shortage of funds for LED companies in the current sluggish economic environment. Some growth enterprises have generally faced growth bottlenecks when their sales revenue exceeds 100 million yuan and net profits reach 30 to 40 million yuan. Listing has also become an important way for companies to raise large amounts of funds to tide over difficulties and scale up the trend. . For example, an enterprise specifically pointed out in the prospectus that subject to the strength of funds, it was subject to certain restrictions in expanding the scale of product production and optimizing the product structure. In particular, there was still a certain gap between the overall strength of the leading enterprises in the Taiwan region and foreign industries. Need to use capital to achieve rapid development and industrial upgrading.

In spite of this, listing can only be considered a new beginning for LED companies. It is not an end but a means. In order to avoid the situation of “seeing dead” after the listing of companies in many other industries, LED listed companies and all stakeholders should clearly understand this. At the same time, LED companies also have to face the problem of overcapacity at the current stage. While companies continue to expand, production capacity has been gradually released; while poor terminal sales, digestion capacity has also become an urgent need for these companies to consider.

Even if LED listed companies have the help of capital, they should use their money and energy.