Government subsidies actually exceed corporate profits LED products to save money?

Recently, the number of mandatory promotion of LED products will be referred to the industry disaster, the report, the industry reacted strongly. From the open channel to understand that the current Chinese LED industry mainly rely on government subsidies to survive, serious imbalance in product cost. Government subsidies induce investment impulse in the LED industry common.

Public information, the beginning of this year to November 10th, listed LED companies have 7, the share price fell sharply, fell from 20% to 65%.

In July 3rd, on the verge of delisting risk GISC showed the 2012 LED industry subsidies first large orders received 200 million yuan of financial subsidies.

July 11th, the Ministry of science and technology website issued a "semiconductor lighting technology development" in 12th Five-Year special plan ". The planning requirements, the scale of the industry in 2015 reached 500 billion yuan, will cultivate 20 - 30 master core technologies, with more independent intellectual property rights, independent brand enterprises, supporting 40 - 50 innovative and high technology enterprises.

In August 24th, Chinese Electronics Import and Export Corporation released 2012/2013 annual financial subsidies to promote the semiconductor lighting products (indoor lighting products: LED lamp, self ballasted reflection type LED lamp) and (outdoor lighting products - LED lights, LED tunnel lights) winning finalists results.

It is understood that, in order to implement the 12th Five-Year energy-saving emission reduction plan, the state since 2009 began to increase the LED lighting industry subsidies. May 2012, the Guangdong Provincial People's government, within 3 years of the province's public lighting in the field of comprehensive popularization of LED lighting products, driven by the LED industry in 2015 to achieve annual output value of more than 500 billion yuan target. Data from the Guangdong science and Technology Department, since 2010, Guangdong financial investment of 1 billion 350 million yuan of special funds to guide enterprises and the community invested nearly $6 billion in matching funds.

From the data we can see that the listed companies in the three quarter profit of 667 million yuan three optical, subsidies of up to 328 million yuan, accounting for nearly half. Coincidentally, the mid year net profit of 120 million yuan, the government subsidy is as high as 150 million yuan more.

Huge subsidies to make the relevant investment impulse. Sanan optoelectronics decided to raise funds not more than 6 billion 300 million yuan total investment of Anhui Sanan optoelectronics Co. Ltd. Wuhu optoelectronic industry (two) and Anhui Sanan optoelectronics Co. Ltd. project LED application products industrialization project, at present, the public offering of shares has been submitted to the Commission China matters, is still in the approval.

According to insiders, at present, the core technology of LED - chip technology is mainly controlled by the United States, part of a master in Taiwan, China mainland is mainly LED manufacturing base, the Pearl River Delta area is larger in the downstream application market and enterprises, but can not grasp the core technology of LED lighting products due to flawed price imbalance is the LED industry.

According to Chinese media reports, in November 21st, the Taiwan Municipal Committee of the construction of the Water Conservancy Committee of the board of directors to remove the central subsidy LED street lamp NT $79 million budget, LED brightness and durability is the biggest problem.

Taichung City Councilor Li Zhong said that the LED lamp heat dissipation is not easy and not enough brightness, about every 50 meters equipped with a halogen lamp, if changed to LED street, every 20 to 30 meters with a light, brightness is enough to increase the intensity of the road lamp, is bound to cause people to rebound. LED street lamps cost about 40 thousand yuan, the heat problem hasn't been solved, so the substrate susceptible to embrittlement, only 5 years of life, and the traditional street lamp every cost as long as 4000 yuan, while the LED street lamp to save some electricity, but overall did not save money.