Secret: The reason behind the collapse of power supply manufacturer Ruigu Technology

A company that specializes in power products in Shenzhen issued a notice saying that the company is currently facing difficulties in business and faces bankruptcy. Ruigu Technology was established in 2000. It was the first high-end power supply for communication power supply. The power supply of the switch has won the recognition of mainstream communication equipment manufacturers including Huawei and Shanghai Belling. It is one of the best in the field of domestic communication power supply.

In 2013, Ruigu Technology also revealed that it is the largest supplier of Huawei communication power. However, due to the limited market capacity of the communication power industry, after 2009, Ruigu Technology sought to develop into LED and data center power sources based on the application of the communication industry. Communication, solar energy and LED are the three business segments of Ruigu Technology, and the LED business is the focus of transformation.

According to official website data, Ruigu Technology (Shenzhen) Co., Ltd. is a Sino-foreign joint venture engaged in research and development and manufacturing of high-end power. It independently develops and produces safe, reliable and durable power products. The product line includes base station system power supply, embedded power supply and standard. Module power supply, LED high-power drive power supply, high-density AC∕DC and DC∕DC power supply are mainly used in communication, cloud computing, new energy, military, medical, server, LED lighting and other areas with high reliability requirements.

However, in the past two years, the competition in the LED power supply industry has become increasingly fierce, and the profit of the products has shown a rapid decline. The growth rate of market demand has also slowed down. It is reported that more than 90% of power companies in 2015 should be very tormented. According to previous reports, Ruigu Technology began to reduce the size of its personnel in 2013. Its executives also said that the company has spent a lot of energy in the field of LED power supply, but the effect is not obvious. The LED industry has a wide range of fields. In 2013, Ruigu Technology made a strategic adjustment and positioned itself in the high-end market.

In 2014, the company revealed that the company adopts direct customer supply and small and medium-sized customer agents to develop the market; Dehao Runda, Zhouming, Wanrun, Zhongshan Hongbao, Guangzhao Lighting, Shanxi Guangyu, Chongqing Silian, etc. Well-known domestic companies are using Ruigu products. At the time, the company also predicted that its 2014 high-power sales is expected to exceed 100 million. This enterprise technology is very good, and has more than 10 years of experience in communications and military power before developing LED business. However, in the fierce market environment, its promotion of its strategy clearly encountered many problems, the transformation failed, and eventually ended up in a collapse.

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