Once a key supplier for the Beijing Olympics, it is now in bankruptcy liquidation! Why did this long-established LED company collapse?

It came as a shock! A veteran LED company that once served the Beijing Olympics and the Shanghai World Expo has now been declared bankrupt by the court!

With internationally advanced production lines and 80% of its products exported to Europe and America, why couldn’t this industry benchmark save itself?

Recently, the People’s Court of Bao’an District, Shenzhen, ruled to accept the bankruptcy liquidation case of Shenzhen Lijing Optoelectronics Co., Ltd. Founded in 2004, this company was once an absolute leader in China’s LED display sector, holding many industry firsts. It left its mark on major international projects such as the Beijing Olympics, the Shanghai World Expo, and Nordic skiing events.

Yet despite appearing strong, this company had long harbored hidden risks—from its manufacturing operations to its business model. On one hand, Lijing Optoelectronics built its own factories, operating as a capital-intensive enterprise. While this was an advantage during boom times, today, with LED price wars raging and profit margins shrinking, factory depreciation and production-line maintenance have become crushing burdens. On the other hand, cultural and tourism night-tour projects, though seemingly glamorous, often require substantial upfront funding and feature extremely long payment cycles. Coupled with volatile overseas orders and large accounts receivable tying up cash flow, debt risks steadily escalated until they became unsustainable. Public records show the company is involved in over 180 lawsuits.

Lao Hong believes this serves as a wake-up call for many lighting business owners. In the past, people assumed that simply scaling up, securing landmark projects, and holding technological Patents would create a competitive moat. But against industry cycles, these so‑called safety buffers are surprisingly fragile. Capital intensity combined with long‑term financing needs means that once cash flow dries up, even the largest enterprises can collapse in an instant.

Lao Hong also notes that Lijing Optoelectronics is far from alone. Over the past year, cases of bankruptcy liquidation across the LED Industry / Supply chain have continued to mount—from Guanjin Optoelectronics in Foshan, to Zhongshun Semiconductor in Zhongshan, to Hongyue Semiconductor. This indicates that the reshuffling of the lighting Industry has entered deep waters. In the second half—competition based on existing stock—what matters is no longer who has bigger factories or greater brand recognition, but who can manage cash flow effectively and control costs. Only companies that respect the market, safeguard their cash reserves, and focus on building solid profits will survive to the end.

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About the Author, Hong Bing:

Hong Bing currently serves as Editor-in-Chief of China Light Net & Agricultural Lighting Net—the official websites of the China Illuminating Electrical Appliances Association—Executive Dean of Ming Classroom, Executive Vice President of the Beijing Illuminating Electrical Appliances Association, Deputy Director of both the Talent Training Committee and the Agricultural Lighting Professional Committee of the China Illuminating Electrical Appliances Association, Executive Deputy Director 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. He has held positions in R&D, product planning, and marketing at institutions including the China Building Materials Academy, Panasonic, GE, and OSRAM. In 2008, he received the Siemens Global Top Plus Award and the Siemens China Excellence Performance Award, and in 2009 founded China Light Net.

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