[Source: "High - tech LED - Research and Review " November issue reporter / Liu Qiaomei GLII]
“When you talk about business, everyone is very happy. You can pay in one week or even three or four days. But after the goods arrive at the customer, there is a lot of reasons for choking. Before talking for a week or a month, the fastest To be dragged to three months later, or even one year." Wang Yi (a pseudonym) also operated a display suite enterprise six months ago, because the display industry funds are difficult to return, but in desperation to switch to the automotive electronics industry.
The customer defaulted on the payment from the application manufacturer, the application manufacturer defaulted on the purchase price of the packaging factory, and the packaging factory went to the loan of the upstream chip and the auxiliary material factory. An original normal industrial chain has become a risky “triangular debt†chain.
Since the second half of 2011, a number of LED display companies in South China have closed down due to the break of the capital chain.
"At the time of the rapid development of the LED industry, the liabilities of the industrial chain have also spread, and the severity has directly led to the collapse of many enterprises. If the bad loans of bank loans are caused, it will even affect the credit evaluation of the LED industry by financial institutions such as banks. Financial support." An industry insider admitted that under a lot of factors, especially the performance pressure, manufacturers have to choose to put money.
According to the latest report released by the High-tech LED Industry Research Institute (GLII), as of the end of the third quarter of this year, 21 listed companies with LED as their main business accounted for a total of 5.519 billion yuan, and accounts payable reached 3.48 billion. yuan. Among them, the total accounts receivable accounted for 89.13% of the total revenue of the above-mentioned companies in the first three quarters.
At present, under the background of the overall downturn in the LED industry, “triangular debts†have swept through, and the complicated debt relationship between enterprises is likely to trigger a chain reaction, affecting upstream and downstream industrial chains and enterprises. For most LED companies at the moment, they are both debt collectors and debt collectors.
Accounts receivable surge
The so-called "triangular debt" is a common name for people who are in arrears with the payment of the arrears of payment between the enterprises and the agreed payment period, and is the chain debt relationship formed between the enterprises.
As early as the late 1980s and early 1990s, there was a round of "triangular debt" crisis in China. More than 20 years have passed, and now, the phenomenon of the new "triangular debt" caused by the difficulty of financing by small and medium-sized enterprises has shown signs of rising, and there are signs of growing.
Take listed companies as an example. As of the end of the third quarter, the accounts receivable of 2,872 A-share companies totaled 2.22 trillion yuan, an increase of 14.25% from the beginning of the year and 2.23% from the end of the second quarter. Nearly 80% of the company's accounts at the end of the third quarter increased compared with the beginning of the year, 339 companies increased by more than 100%, while the performance of 189 companies in the first three quarters is growing, but the accounts receivable have doubled, bringing about hidden concerns.
Take Sanan Optoelectronics (600703), the largest LED chip manufacturer in China, as an example. Its accounts receivable soared from 352 million yuan at the beginning of this year to 707 million yuan at the end of the third quarter, an increase of 100.92%, and the total accounts receivable. It has accounted for 30% of the total revenue in the first three quarters. At the same time, the company's notes receivable, other receivables and inventories also increased by 591.39%, 406.94% and 5.45% respectively 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, and the significant increase in accounts receivable was mainly caused by the sales scale.
According to the data, Sanan Optoelectronics' sales in the third quarter of this year were 2.35 billion yuan. According to the company's cash flow statement data, the company's sales of goods and labor services received in the quarter were only 1.18 billion yuan. This means that in the first three quarters, nearly half of the company's merchandise sales failed to recover the purchase price in time, but became a bill of exchange and receivables.
The same situation also occurred in the upstream MO source supplier of Sanan Optoelectronics - Nanda Optoelectronics (300346).
The data shows that the accounts receivable of Nanda Optoelectronics soared from 8.57 million yuan at the beginning of this year to 33.39 million yuan at the end of the third quarter, an increase of 336.32%. At the same time, at the end of the third quarter, accounts receivable accounted for 24.6% of the company's total revenue. The company said that the main reason is that the return rate is slow this year. At the same time, the company's other receivables increased by 4,488,000 yuan compared with the opening balance, an increase of 134.02%; the notes receivable increased by 163.142 million yuan, an increase of 159.01%.
Behind the surge in accounts receivable is the inevitable result of the overcapacity in all links of the industrial chain. Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, said: "This reflects the changing trend of the market to a certain extent. The impact of overcapacity on the market will become more and more obvious in the next six months."
Judging from the investigation of reporters, 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 sales of finished products, any delay in any link in the industrial chain will have an impact.
"The triangular debt problem of the LED industry has long existed and it is a difficult problem. The general manufacturers are not willing to disclose it, and there is suffering." Shi Weili, a senior expert in the LED industry, said that under normal circumstances, there will be no problem, and it may become a problem under the pressure of overall market downturn and oversupply.
The reporter learned that before August 2010, Nanda Optoelectronics gave domestic and foreign customers a credit cycle ranging from 30 to 90 days after arrival. After August 2010, due to the shortage of products, Nanda Optoelectronics requested that most customers request prepayment or payment before delivery; after August 2011, customers will be re-submitted from 30 to 90 different accounts.
"Now many chip factories don't have cash to pay suppliers. Suppliers can't do anything. If they don't continue to supply, they mean backlogs and inventory losses." A domestic chip manufacturer official said helplessly.
Recently, Gaogong LED Industry Research Institute learned in the process of enterprise research that the current domestic chip companies' account period is generally five or six months or even longer, and accounts receivable and revenue are almost 1:1. At the same time, some listed companies put some of their accounts receivable in commercial papers, plus government subsidies, so the number of accounts receivable seen on the statement is lower than the actual situation.
For some of the packaging companies in the middle of the LED industry chain, the situation is not optimistic.
The data shows that Lehman Optoelectronics (300162) accounts receivable for the year of 36.257 million yuan, an increase of 122.45%; 2011 accounts receivable of 66.061 million yuan, an increase of 84.52%; as of the end of the third quarter of 2012 should be collected The amount was 849.557 million yuan, a year-on-year increase of 38.17%.
GLII senior analysts believe that there are several reasons for the increase in accounts receivable of listed companies in the third quarter: First, listed companies in order to maintain operating results, relax customer payment conditions, resulting in increased accounts receivable; second, product sales difficulties, listed companies Selling goods to downstream customers or distributors to quickly expand sales; Third, listed companies deliberately increase sales revenue and profits in order to beautify the statements, but because there is no real money account, a large amount of accounts receivable is generated.
“When you talk about business, everyone is very happy. You can pay in one week or even three or four days. But after the goods arrive at the customer, there is a lot of reasons for choking. Before talking for a week or a month, the fastest To be dragged to three months later, or even one year." Wang Yi (a pseudonym) also operated a display suite enterprise six months ago, because the display industry funds are difficult to return, but in desperation to switch to the automotive electronics industry.
The customer defaulted on the payment from the application manufacturer, the application manufacturer defaulted on the purchase price of the packaging factory, and the packaging factory went to the loan of the upstream chip and the auxiliary material factory. An original normal industrial chain has become a risky “triangular debt†chain.
Since the second half of 2011, a number of LED display companies in South China have closed down due to the break of the capital chain.
"At the time of the rapid development of the LED industry, the liabilities of the industrial chain have also spread, and the severity has directly led to the collapse of many enterprises. If the bad loans of bank loans are caused, it will even affect the credit evaluation of the LED industry by financial institutions such as banks. Financial support." An industry insider admitted that under a lot of factors, especially the performance pressure, manufacturers have to choose to put money.
According to the latest report released by the High-tech LED Industry Research Institute (GLII), as of the end of the third quarter of this year, 21 listed companies with LED as their main business accounted for a total of 5.519 billion yuan, and accounts payable reached 3.48 billion. yuan. Among them, the total accounts receivable accounted for 89.13% of the total revenue of the above-mentioned companies in the first three quarters.
At present, under the background of the overall downturn in the LED industry, “triangular debts†have swept through, and the complicated debt relationship between enterprises is likely to trigger a chain reaction, affecting upstream and downstream industrial chains and enterprises. For most LED companies at the moment, they are both debt collectors and debt collectors.
Accounts receivable surge
The so-called "triangular debt" is a common name for people who are in arrears with the payment of the arrears of payment between the enterprises and the agreed payment period, and is the chain debt relationship formed between the enterprises.
As early as the late 1980s and early 1990s, there was a round of "triangular debt" crisis in China. More than 20 years have passed, and now, the phenomenon of the new "triangular debt" caused by the difficulty of financing by small and medium-sized enterprises has shown signs of rising, and there are signs of growing.
Take listed companies as an example. As of the end of the third quarter, the accounts receivable of 2,872 A-share companies totaled 2.22 trillion yuan, an increase of 14.25% from the beginning of the year and 2.23% from the end of the second quarter. Nearly 80% of the company's accounts at the end of the third quarter increased compared with the beginning of the year, 339 companies increased by more than 100%, while the performance of 189 companies in the first three quarters is growing, but the accounts receivable have doubled, bringing about hidden concerns.
Take Sanan Optoelectronics (600703), the largest LED chip manufacturer in China, as an example. Its accounts receivable soared from 352 million yuan at the beginning of this year to 707 million yuan at the end of the third quarter, an increase of 100.92%, and the total accounts receivable. It has accounted for 30% of the total revenue in the first three quarters. At the same time, the company's notes receivable, other receivables and inventories also increased by 591.39%, 406.94% and 5.45% respectively 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, and the significant increase in accounts receivable was mainly caused by the sales scale.
According to the data, Sanan Optoelectronics' sales in the third quarter of this year were 2.35 billion yuan. According to the company's cash flow statement data, the company's sales of goods and labor services received in the quarter were only 1.18 billion yuan. This means that in the first three quarters, nearly half of the company's merchandise sales failed to recover the purchase price in time, but became a bill of exchange and receivables.
The same situation also occurred in the upstream MO source supplier of Sanan Optoelectronics - Nanda Optoelectronics (300346).
The data shows that the accounts receivable of Nanda Optoelectronics soared from 8.57 million yuan at the beginning of this year to 33.39 million yuan at the end of the third quarter, an increase of 336.32%. At the same time, at the end of the third quarter, accounts receivable accounted for 24.6% of the company's total revenue. The company said that the main reason is that the return rate is slow this year. At the same time, the company's other receivables increased by 4,488,000 yuan compared with the opening balance, an increase of 134.02%; the notes receivable increased by 163.142 million yuan, an increase of 159.01%.
Behind the surge in accounts receivable is the inevitable result of the overcapacity in all links of the industrial chain. Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, said: "This reflects the changing trend of the market to a certain extent. The impact of overcapacity on the market will become more and more obvious in the next six months."
Judging from the investigation of reporters, 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 sales of finished products, any delay in any link in the industrial chain will have an impact.
"The triangular debt problem of the LED industry has long existed and it is a difficult problem. The general manufacturers are not willing to disclose it, and there is suffering." Shi Weili, a senior expert in the LED industry, said that under normal circumstances, there will be no problem, and it may become a problem under the pressure of overall market downturn and oversupply.
The reporter learned that before August 2010, Nanda Optoelectronics gave domestic and foreign customers a credit cycle ranging from 30 to 90 days after arrival. After August 2010, due to the shortage of products, Nanda Optoelectronics requested that most customers request prepayment or payment before delivery; after August 2011, customers will be re-submitted from 30 to 90 different accounts.
"Now many chip factories don't have cash to pay suppliers. Suppliers can't do anything. If they don't continue to supply, they mean backlogs and inventory losses." A domestic chip manufacturer official said helplessly.
Recently, Gaogong LED Industry Research Institute learned in the process of enterprise research that the current domestic chip companies' account period is generally five or six months or even longer, and accounts receivable and revenue are almost 1:1. At the same time, some listed companies put some of their accounts receivable in commercial papers, plus government subsidies, so the number of accounts receivable seen on the statement is lower than the actual situation.
For some of the packaging companies in the middle of the LED industry chain, the situation is not optimistic.
The data shows that Lehman Optoelectronics (300162) accounts receivable for the year of 36.257 million yuan, an increase of 122.45%; 2011 accounts receivable of 66.061 million yuan, an increase of 84.52%; as of the end of the third quarter of 2012 should be collected The amount was 849.557 million yuan, a year-on-year increase of 38.17%.
GLII senior analysts believe that there are several reasons for the increase in accounts receivable of listed companies in the third quarter: First, listed companies in order to maintain operating results, relax customer payment conditions, resulting in increased accounts receivable; second, product sales difficulties, listed companies Selling goods to downstream customers or distributors to quickly expand sales; Third, listed companies deliberately increase sales revenue and profits in order to beautify the statements, but because there is no real money account, a large amount of accounts receivable is generated.
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