Started with small home appliance of bdo, the suffered after the global financial crisis, the company's operating profit loss of 60 million yuan for a time. Is in the transition period of bdo embellish of recently released 2012 annual report of the results is not ideal. Annual report, the company in 2012, its operating income and net profit fell. Company achieve revenue 2.76 billion yuan last year, falling by 10.04% over the previous year, operating profit - $24.3291 million, falling by 116.69% over the previous year, the net profit attributable to shareholders of listed companies will reach 162 million yuan, down by 58.71% over the previous year.

Bdo, dismal performance to a certain extent, also reflects in the industrial chain upstream of the LED chip, the epitaxial wafer an epitome of the dismal performance of enterprises.

According to statistics, at present, has released 2012 annual report and the letters of the LED performance of listed companies, ShiLan biggest net profit fell, fell 80%, the industry last year net profit of a drop of about 30%.

Some researchers think that excess capacity and price war was the cause of falling profits of listed companies in the LED industry mainly two reasons.

Recently, shenzhen city, in the form of government gazette abolished "about printing of shenzhen LED industry development planning (2009-2015) notice. As the LED industry, shenzhen's enterprises engaged in the LED industry has accounted for nearly half the country, and as the nation's first LED industry planning blueprint was abolished, LED to speculation in the industry.

LED manufacturers in shenzhen, in an interview with the media think shenzhen has now one hundred million yuan level LED businesses fail, the entire LED industry actual has excess capacity, based on the fear that LED industry become the second photovoltaic industry, may is the shenzhen government planning of the important reasons.

Reporter in the interview also learned that the sample of the LED industry is known as the national energy saving and environmental protection industry, with national policy support and subsidies, the LED industry in China has quickly become the capital of "darling". With the rapid development of LED lighting industry, the domestic LED industry expanding production capacity, a large number of low-end products with excess capacity, also LED to the industrial competitiveness is not strong. At that time, "plumes" bankruptcy, the price war, competing for resources, and behind this phenomenon are revealed to the LED industry pattern is changing.

The researchers say, due to the blind influx of funds, local governments have also introduced policies to support the development of LED industry, LED to the upstream MOCVD equipment subsidies, and is also the biggest efforts, LED the upstream chip a surplus, the demand from 2009 to 2009 to 2012 has been the point of serious supply exceeds demand. From the upstream investment, epitaxial wafer investment growth decreased from 46% in 2011 to 10% in 2012, and the downstream applications investment growth at 21% in 2011, rose to 53% in 2012, and it also means that the LED industry investment focus shift from upstream to downstream.

Is capital of the LED industry seemed to pay once money blindly. According to the institute of professional industry, according to the LED industry upstream serious supply exceeds demand, operating at less than fifty percent, the whole LED upstream there are nearly 50% of the machines are idle.

The personage inside course of study thinks, because exports blocked downstream demand LED to the LED lighting to reduce, leading to serious overcapacity problem, the upstream chip field to resolve this contradiction, must first to expand domestic demand, change the status of the downstream relies heavily on exports. In addition, guide the LED industry structural change and improve the spectrum in the field of concentration, at the same time, encourage enterprises to increase research and development of high ＆#118alue-added.

In the industry point of view, the most important thing is to reduce the government's administrative subsidies on LED business, practical use of the market for LED companies to phase out. As with many industries, at present, the LED industry is the main external factors structural surplus, and this kind of situation besides associated with depressed market, also from the government's administrative assistance.

Recently, the national development and reform commission issued "semiconductor lighting energy saving industry planning", the LED lighting production goals in 2015 by the "twelfth five-year" plan of 500 billion yuan to 450 billion yuan. The development and reform commission issued by the industry planning, and may be rational policy for future development of LED industry.