China LED inventory piles up to record level

China LED inventory piles up to record level

Siu Han, Taipei; Adam Hwang, DIGITIMES

Friday 3 May 2019

Six major China-based LED chip makers saw combined inventory value rise from CNY6.52 billion (US$943 million) at year-end 2018 to a record high of CNY6.77 billion at the end of March 2019, thanks to oversupply arising from weak demand and production capacity expansions. Sanan had inventory value of CNY2.958 billion at the end of March 2019, rising 10.37% from year-end 2018, while Focus Lightings’ inventory increased 19.62% to CNY250 million during the three-month period. Inventory turnover was slow along with rising inventory value: The average inventory turnover rate slowed from 174 days at year-end 2018 to 232 days at the end of March 2019 for Sanan; from 205 days to 241 days for HC SemiTek; and from 178 days to 278 days for Changelight.

Source: www.digitimes.com