Breaking: Leyard has once again been hit with a hefty fine for bid-rigging and collusion—how can the company restore its corporate reputation?

Breaking news: Leyard has been suspended from participating in military procurement nationwide due to bid-rigging and collusion.

Having made the list twice within four months, what’s going on with this leading LED display manufacturer?

On August 22, the Military Procurement Website published a notice of suspension for suppliers, stating that Leyard has been barred from taking part in military procurement activities—covering materials, construction, and services—across the entire armed forces. The suspension applies nationwide, and the responsible authority is the Procurement Management Department of the Joint Logistics Support Force.

Notably, this marks the second time this year that Leyard has been suspended by the Military Procurement Website. On April 30, Leyard was similarly suspended nationwide for bid-rigging and collusion. With less than four months between these two suspensions—and distinct violation case numbers and authorized representatives—it is highly likely that at least two separate incidents of bid-rigging and collusion are involved.

The announcement further specifies that, effective from the date of publication, Leyard’s legal representative, its controlling natural person shareholder, as well as other companies controlled or managed by related parties, will also face restrictions when participating in relevant military procurement activities. In addition, the company will be subject to corrective orders, fines, and other penalties.

According to Lao Hong, being suspended from military procurement nationwide twice within four months for bid-rigging and collusion is no longer an isolated incident; rather, it highlights systemic compliance issues within the company’s management of military procurement. Bid-rigging and collusion are among the key violations closely monitored in military procurement, and any breach triggers higher‑level credit sanctions and broader market exclusions. Even more concerning is that affiliated entities are likewise restricted, suggesting the problem extends beyond Leyard itself and could impact other business segments under its control or management.

Beyond this, Lao Hong points out that although the military procurement market is not Leyard’s primary revenue source, the cumulative effect of these two suspensions will continue to weigh on the company’s brand reputation and compliance image. Against the backdrop of intensifying competition in the LED industry, companies must establish even stricter internal review mechanisms covering bid compliance, on-site management, and authorization oversight; otherwise, similar issues may recur.

Follow “Lao Hong on Lighting” to illuminate your path forward!

About the author, Hong Bing:

Hong Bing currently serves as the Editor-in-Chief of China Light Network and Agricultural Lighting Network—the official websites of the China Illuminating Electrical Appliances Association—as well as Executive Dean of Ming Classroom. He also holds positions as Deputy Director of the Talent Training Committee of the China Illuminating Electrical Appliances Association, Secretary-General of the Agricultural Lighting Professional Committee of the same association, Secretary-General of the Lighting Alumni Association of Fudan University, and a board member of the Ecological Environment Alumni Association of CEIBS. He graduated from the Department of Light Sources and Lighting Engineering at Fudan University in 1991 and earned an MBA from CEIBS in 2003. Over the years, he has worked in R&D, product planning, and marketing at institutions including the China Building Materials Academy, Panasonic, GE, and OSRAM. In 2008, he received both the Siemens Global Top Plus Award and the Siemens China Excellence Award, and in 2009 founded China Light Network.

For more exciting content, please follow our official WeChat account or video channel

“Lao Hong on Lighting”