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LED companies expressed optimism toward the industry on the LED Industry Summit held on Friday and Saturday in Shenzhen.

The summit is organized by Gaogong LED, an industry institute, and 20 most influential companies in the industry participated in the summit, most of which are listed companies.

LED industry always catches attention as a new and energy saving industry that the government gave a lot of support in policies and funds, but the latest time was the bankrupt of several LED companies in Shenzhen, the most recent one a company called Junduoli, which has sales of 100 million yuan in 2010, its boss ran away and the company closed down in this October. These cases raised widespread questioning in the industry.

LED companies clarified on the summit that these closing down are separate cases.

Gong Weibin, chairman of Shenzhen Refond Optoelectronics Co, a listed company specializing in chip-packaging, midstream of LED industry, said he didn't feel a panic as media described before in the industry.

"Junduoli closed because its overexpansion, and the funds chain cannot keep up with it, it does not represent the performance of the LED industry," said Gong.

"As in the midstream, before we have about 30 to 35 percent gross profit margin, this year it's about 15 to 20 percent," he said, "I think it shows the industry has come back to normal, and it's time to test the strength of companies."

Xiao Ling, chairman of Shenzhen Collection Enterprises Company, specializing in LED lighting products was the same opinion.

"As a company it shall position itself correctly in the market and does what it's good at," she said, "I think the industry is very hopeful, just it has a shakeout now."

Zhang Xiaofei, director of Gaogong LED Industry Institute, said though LED industry confronts pressure from the euro crisis and the global economic depression, it has a lot of opportunities.

Statistics of the institute shows 7 LED companies IPO this year have raised 3.625 billion yuan by November. According to the statistics the LED industry output of 2011 will reach 154 billion yuan, a 22 percent growth compared with last year.

Zhang said the company leaders have reached agreement to enhance cooperation, on the one side to improve product quality such as making an industry specification, on the other side companies from upstream, midstream and downstream cooperate to reallocate resources.

Fujian Wanbang Optoelectronic Technology Company, LED lighting products producer launched on the summit a LED fluorescent tube with light efficiency of 151 lm/W,a world advanced number, it's co-developed with San'an Optoelectronics, a LED chip producer and Sichuan Sunfor Lighting Company, specialized in rare earth and phosphor powder and the Haixi Institute of Chinese Academy of Sciences.

He Wenming, chairman of Wanbang said tube is in volume production already, and the market price is around 170 yuan.

He said the high price is one crucial reason that LED lights are not favored in the home lighting market. He believes cooperation with upstream companies will for sure contribute to lower costs, and so as to take up the home lighting in the near future.