A person in the know told our reporters that there are two different opinions on the prospect of HiboLED inside the company. “Some investors want to sell the company and carry out the bankruptcy liquidation to get part of their investment back, while HiboLED’s president Zhao Hui wants to continue to run the company and believes that he will vitalize the company.”

Financial problem
 
HiboLED has delivered the back pay to workers and resumed the production

According to a worker, HiboLED has delayed the paycheck for workers since August and paid back part of the wages every two months.  “The company paid back part of the wages of September last weekend, but only a part of workers can get the payment.”
 
HiboLED delayed the paycheck for workers of about RMB 2mn and defaulted on payment for suppliers of about RMB25mn.

“I suppose Zhao Hui raised money quickly and paid back the workers, so the court lifted the attachment on the factory,” analyzed the above-mentioned person in the know. “The workers don’t expect to get full payment in current crisis. They hope the factory to resume the production and solve the problem step by step.”

 Different opinions

According to our reporters, the shutdown of the factory was mainly caused by the default on payment for suppliers, which resulted in the interruption on supplies.
 
In 2011, Long Yang, general manager of HiboLED said in an interview that the company had planned to reach 80% of growth in sales at the beginning of 2011, but the company achieved only 45% by November due to the weak economies of the EU and the USA and the domestic money squeeze.
 
HiboLED once tried to make a transformation. In April, 2011, Zhao Hui established Shenzhen Kesos Co., Ltd with RMB 10mn to focus on more lucrative LED lighting market. However, the product wasn’t accepted by the customers, which indirectly triggered the breakdown of capital chain.
 
“Some investors want to sell HiboLED or carry out the bankruptcy liquidation, while the founder Zhao Hui wants to revitalize the company.”For some, HiboLED has before it not only the financial problem, but also a conflict of opinions amongst shareholders.