中文版

English

Home About Products News Contact
News News

The zombie glow LED industry new energy enterprises withdrawing from market

2016/9/5 16:05:03

On this year's two sessions, zombies out market become many people's congress proposed a key issue. Meeting of the 12 National People's Congress (NPC) in guangdong province four governor zhu report also made it clear to let zombie companies exit the market completely. Especially the pearl river delta region in guangdong is the most concentrated area of LED industry in China, so in LED display industry system, whether there are some relatively backward production capacity?

First of all, let's look at what is a zombie companies. Zombies, as the name implies, it is no longer has the vitality, unable to repay debts, can only borrow new and old enterprises survive. These companies one thing in common is unable to pay interest on the cash flow, can only borrow the new and old, debts to compound exponential growth. And of course, in the LED display industry, the cash flow is also the pain points of some enterprises, and because of capital chain rupture and collapse of enterprises has been too much.

Nowadays, the development of LED display industry has gradually appeared the phenomenon of excess capacity, developed the price war that afflict, some excellent enterprises if they don't cut the Gordian knot disposal 'zombies', will be high quality enterprise and the industry down together. In nearly two years we have seen the whole LED display industry to accelerate the integration period, some enterprises are also being phased out in the process, however, the head under the trend of Evergrande, there are some enterprises in the struggle to maintain a corporate debt. Close the "zombie" companies, therefore, make more effective utilization of resources and configuration, so as to improve productivity.

Guangdong governor zhu said: "in my opinion is no market, no market for those products, companies are still dying. Can say, the enterprise not only create social value, will be a huge waste of social resources, bring social overcapacity. So, for such enterprise will through restructuring, bankruptcy and other means, let it completely withdraw from the market, can effectively solve the problem of excess production capacity."

According to the guangdong province will build state-owned and non-state-owned "zombie" companies database by the end of 2018, the basic elements of a "zombie" companies market clearing. Among them, until the end of 2016, the provincial state-owned companies off entirely, non-state "zombie" companies disposal mechanism basic establishment; At the end of 2017, the province most needy state-owned enterprises basic hole. The structural reforms to the supply side of guangdong province productivity action plan (2016-2018), "pointed out that to depend mainly on government subsidies or bank renew loans and other ways to maintain the production and business operation, asset-liability ratio over 85% and the losses of more than 3 years in a row, three consecutive years of unpaid wages, taxes, debit interest, owe cost, production and operation difficulties caused by production for more than six months or BanTingChan 1 years of industrial enterprises above designated size, further accurate recognition. Around to establish archives for a single "zombie" companies listed enterprise's total assets, total liabilities, taxes and fees in arrears, property defects, should be placed the number and cost, and so on and so forth.