[Original] The operator sent a letter to the Foshan LED development.

Foshan City Economic and Trade Bureau:

Hello there!

I am the Deputy Secretary General of Foshan Lighting Association. I am counting on it. Now I have been rooted in Foshan for 22 years. I have gained my career and family in Foshan. It is already my second hometown. For more than 20 years, Foshan has provided me with the soil for growth. Together with Foshan, I have experienced a wave of industry and urban upgrading, witnessing the tremendous changes in economic development and urban environment.

Although Foshan is one of the important production bases in China's lighting industry, the advantages of the lighting industry are not obvious compared to other traditional manufacturing industries. A few years ago, under the dual pressure of market development and environmental protection and energy conservation, the lighting industry began to transform into LED. Now, it can be said that any enterprise that does not participate in LED production will be eliminated soon. This is a market trend.

I, as an industry observer and participant, agree with the government's push effect for the LED industry. Continuous support policies and practices, such as the same stock "clear spring", bring sweetness to Foshan lighting industry. For example, Foshan promotes the use of LED lighting projects and replaces public lighting lamps within two years. This project requires a total of 660,000 lamps. It is an extremely attractive “cake”. Although not all companies can benefit, it also promotes lighting companies. I began to think more about “cultivating” in terms of technology. Two years ago, Nanhai invested 1 billion yuan to build a new light source industrial base in Guangdong. Enterprises entering the park not only can get subsidies for rent and tax relief, but also receive technical support. This brings tangible benefits to the enterprise; Chancheng subsidizes the indoor lighting renovation of LED lamps. By the end of next year, the total subsidy will reach 15 million yuan. Once the indoor lighting market is opened, this will be another new world...

Under the temptation of various "sweetness", a large number of enterprises in Foshan have flooded into the LED field. This includes many companies that attempt to pan for gold in the cross-industry. Enterprises with uneven strength have entered, resulting in a mixed market of LEDs and low-cost competition. What follows is the risk control issue. How to improve the industry's entry barriers and regulate the industry order is a problem that should be solved after the rapid development of the industry. As an industry association from a company, we see the dilemmas facing companies behind the booming landscape of LEDs.

Some time ago, the two member companies of the association turned to us for help. Due to the lack of loans, their companies were facing bankruptcy, but in fact, their business conditions were not bad. As an emerging industry, LED is a relatively serious "triangular debt" problem. Once an environmental capital chain breaks, it will trigger a "domino effect."

In addition, this year's sluggish economic situation has also put pressure on companies. The economic situation in Europe and the United States continues to be sluggish, foreign orders have plummeted, and the domestic market has encountered difficulties. In addition, human and raw material costs have risen, and business conditions are worrying. Enterprises in distress look forward to external forces to help "break the ice."

The above is the ruthless appeal that I took the opportunity to present to your organization. The association and the companies are looking forward to your company to provide guidance, give confidence and work together to promote industrial upgrading.

Sincerely
salute!

Zhang Hua, Deputy Secretary General of Foshan Lighting Association

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